Oreninc Index Update: May 14, 2015

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Oreninc Index Jumps to Five-Week High

The Oreninc Index jumped to a five-week high for the week ending May 14, 2015. Total dollars announced exploded to $243.7m, a 30-week high. Five brokered financings were announced for $106.1m, a five-week high; Two bought deals were announced for $69m, also a five-week high.

Deal-making was relatively quiet this week, with Crocodile Gold (TSX:CRK) and Newmarket Gold Inc. (TSX-V:NGN) agreeing to merge to form a new mid-tier gold producer being the largest of note. Crocodile and Newmarket shareholders will own 80% and 12% stakes in NewCo respectively (the remaining 8% will be sold in a corresponding private placement). Iron ore continued its rise, and gold had a fantastic week, ending the period well above the $1,200 level.

Although deal-making dropped off a bit this week, the Index’s solid performance over the previous three weeks, mixed with gold and iron ore prices, is a positive way to head into the generally quieter summer months.

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 Summary:

  • Number of financings rose to 35, an 11-week high.
  • Five brokered financings were announced for $106.1m, a five-week high.
  • Two bought deals were announced for $69m, a five-week high.
  • Total dollars exploded to $243.7m, a 30-week high.
  • Average offer size jumped to $7m, a 13-week high.

Major Financing Openings:

  • Tamarack Valley Energy Ltd. (TSX-V:TVE) opened a $74.08 million offering underwritten by a syndicate led by National Bank Financial on a bought deal basis. The deal is expected to close on or about June 3, 2015.
  • Largo Resources Ltd. (TSX-V:LGO) opened a $68.6 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.
  • Newmarket Gold Inc. (TSX-V:NGN) opened a $25 million offering underwritten by a syndicate led by GMP Securities LP on a best efforts basis.
  • Gold Standard Ventures Corp. (TSX-V:GSV) opened a $16.2 million offering on a strategic deal basis. The deal is expected to close on or about May 20, 2015.

Major Financing Closings:

  • Midland Exploration Inc. (TSX-V:MD) closed a $14.44 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
  • Pershimco Resources Inc. (TSX-V:PRO) closed a $7.07 million offering underwritten by a syndicate led by TD Securities Inc. on a best efforts basis.
  • UEX Corporation (TSX-V:UEX) closed a $3.3 million offering underwritten by a syndicate led by Marquest Capital on a best efforts basis.
  • Columbus Gold Corp. (TSX-V:CGT) closed a $2 million offering on a best efforts basis.

 

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