Oreninc Index Update: June 26, 2014

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Oreninc Index Scores Biggest Uptick of 2014

The Oreninc Index increased by its largest margin of 2014 for the week ending June 26, 2014. After last week’s implosion, this type of performance, where all metrics have increased by an impressive margin, is a welcome sight. Total dollars announced exploded to $188.4m, a 15-week high. Brokered dollars announced rose to $122.3m, a 15-week high; bought dollars announced increased to $92m, a 16-week high. 

In addition to the positive fundraising news, HudBay announced its long-awaited acquisition of Augusta Resources (and with it their Rosemont Copper project), in what is a follow-up of sorts to last week’s deal making in the copper space. While it is always good to see activity like this, it is important to remember that the positive fundraising numbers are likely a direct result of companies wanting to get news out before next week’s holiday-filled work week and the uptick in spot gold prices this week. Don’t expect the Index to stay at this level for very long, with it likely to trend down to a more modest level after next week.

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Summary:

  • Deals announced rose to 50, a YTD high.
  • Eight brokered deals were announced for $122.3m, a 15-week high.
  • Three bought deals were announced for $92m, a 16-week high.
  • Total dollars exploded to $188.4m, a 15-week high.
  • Average deal size increased to $3.8m, a two-week high.

Major Financing Openings:

  • MAG Silver Corp. (TSX:MAG) opened a $75.03 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. The deal is expected to close on or about July 16, 2014.
  • Elkwater Resources Ltd. (TSX-V:ELW) opened a $25 million offering on a best efforts basis. The deal is expected to close on or about July 9, 2014.
  • Besra Gold Inc. (TSX:BEZ) opened a $15.39 million offering on a strategic deal basis. The deal is expected to close on or about July 10, 2014.
  • Avnel Gold Mining Ltd. (TSX:AVK) opened a $13.5 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis. Each unit includes 1 warrant that expires in 30 months. The deal is expected to close on or about July 7, 2014.

Major Financing Closings:

  • Sunshine Oilsands Ltd. (TSX:SUO) closed a $76.8 million offering on a strategic deal basis.    
  • Madalena Energy Inc. (TSX-V:MVN) closed a $50.03 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis.    
  • Ceno Energy Ltd. (TSX-V:CUX) closed a $9.99 million offering on an insiders-only basis.    
  • Nighthawk Gold Corp. (TSX-V:NHK) closed an $8 million offering underwritten by a syndicate led by Primary Capital Inc. on a best efforts basis.

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