Oreninc Index Update: May 2, 2013

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Oreninc Index Jumps to Seven-Week High

Note: The Oreninc Index image below has been inverted from previous weeks. The weekly state of the market is now the purple line and the five-week moving average is the grey area.

The Canadian resource financing markets continue to slump even as the Oreninc Index reaches a seven-week high during the week ending May 2, 2013. The major driver of this week’s Index was a single large offering. Had that offering not occurred, the week would have been flat. While it is nice to see large companies still being able to raise money, the Index bump is likely not a positive indication for mining juniors.

 

Summary:

  • Total deals announced climbed to 31, a six-week high.
  • One brokered deal was announced for $90 million dollars.
  • One bought deal was announced.
  • Total dollars announced increased to $128 million, a seven-week high
  • Average deal size increased to $4.1 million, a four-week high.

Major Financing Openings:

  • Whitecap Resources Inc. (TSX:WCP) opened a $110.01 million offering underwritten by a syndicate led by GMP Securities L.P. on a bought deal basis.
  • Tyhee Gold Corporation (TSX-V:TDC) opened a $2.4 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
  • Abzu Gold Ltd. (TSX-V:ABS) opened a $2 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 12 months.
  • Western Pacific Resources Corp. (TSX-V:WRP) opened a $2 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.

Major Financing Closings:

  • Pretium Resources Inc. (TSX:PVG) closed a $40 million offering on a best efforts basis.
  • CGX Energy Inc. (TSX-V:OYL) closed a $37.01 million offering underwritten by a syndicate led by GMP Securities L.P. on a best efforts basis. Each unit includes 1 warrant that expires in 60 months.
  • Storm Resources Ltd. (TSX-V:SRX) closed a $29.29 million offering underwritten by a syndicate led by FirstEnergy Capital Corp on a bought deal basis.
  • Kootenay Silver Inc. (TSX-V:KTN) closed a $4.75 million offering on a best efforts basis.

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