Oreninc Index Update: March 6, 2014

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Oreninc Index Strong During PDAC Week

The Oreninc Index showed strength for the week ending March 6, 2014. Total dollars announced rose to $298.9m, its highest level in almost two years. Brokered and bought dollars announced also had stellar weeks, announcing $248.9m and $213.6m respectively. This was a standout week. In addition to one large deal, some impressive mid-range financings increased the weekly state of the market, a rarity in the last year. While this week’s performance is likely due to companies wanting to announce their deals during the week of the PDAC, the fact that management feels they can raise this much cash gives us some optimism as we head into Spring.

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Summary:

  • Deals announced fell to 35, a three-week low.
  • Twelve brokered deals were announced for $248.9m, a 96-week high.
  • Five bought deals were announced for $213.6m, a 106-week high.
  • Total dollars announced exploded to $298.6m, a 96-week high.
  • Average deal size jumped to $8.8m, a 51-week high.

Major Financing Openings:

  • Kelt Exploration Ltd. (TSX:KEL) opened a $132.2 million offering underwritten by a syndicate led by Peters & Co. Ltd. on a bought deal basis. The deal is expected to close on or about March 25, 2014.
  • Gear Energy Ltd. (TSX:GXE) opened a $50 million offering underwritten by a syndicate led by FirstEnergy Capital Corp. on a bought deal basis. The deal is expected to close on or about March 28, 2014.
  • BNK Petroleum Inc. (TSX:BKX) opened a $35 million offering underwritten by a syndicate led by Macquarie Capital Markets Canada Ltd. on a bought deal basis. The deal is expected to close on or about March 26, 2014.
  • Roxgold Inc. (TSX-V:ROG) opened a $20.01 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 March 25, 2014.

Major Financing Closings:

  • Pretium Resources Inc. (TSX:PVG) closed a $20.73 million offering underwritten by a syndicate led by BMO Capital Markets on a best efforts basis.    
  • Laurentian Goldfields Ltd. (TSX-V:LGF) closed an $18.58 million offering underwritten by a syndicate led by Macquarie Capital Markets Canada Ltd. on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 30 months.
  • Serabi Gold PLC (TSX:SBI) closed an $18.51 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
  • Marquee Energy Ltd. (TSX-V:MQL) closed an $11.65 million offering on a strategic deal basis.

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