Oreninc Index Update: May 21, 2015

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Oreninc Index Falls to Reality

The Oreninc Index fell back down to reality for the week ending May 21, 2015. Total dollars announced fell to $104.6m, a two-week low. Four brokered financings were announced for $76.4m, a three-week low; three bought-deal financings were announced for $61.4m, a two-week low.

Deal-making was slow for the week, with the most notable news being the commencement of trading of South32 Limited (ASX:S32), BHP Billiton Ltd.’s (NYSE:BHP) recently spun-out mining producer. Commodities had a down week with gold falling sharply, ending the week just above $1,200 an ounce, and iron ore falling after a couple of good straight weeks.

While it is disappointing that the Index’s performance went down and commodity prices had such a rough week, the five-week average increased to its highest level in 31 weeks. Given the state of the industry, that is as encouraging sign as we could hope for heading into the summer months.

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Summary:

  • Number of financings dropped to 32, a two-week low.
  • Four brokered financings were announced for $76.4m, a three-week low.
  • Three bought deals were announced for $61.4m, a two-week low.
  • Total dollars fell to $104.6m, a two-week low.
  • Average offer size decreased to $3.3m, a two-week low.  

Major Financing Openings:

  • Storm Resources Ltd. (TSX-V:SRX) opened a $36.4 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 June 10, 2015.
  • Trevali Mining Corp. (TSX:TV) opened a $20 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis. The deal is expected to close on or about June 11, 2015.
  • Otterburn Resources Corp. (TSX-V:OBN) opened a $15 million offering underwritten by a syndicate led by TD Securities Inc. on a best efforts basis.
  • Pretium Resources Inc. (TSX:PVG) opened a $6 million offering on a best efforts basis.    

Major Financing Closings:

  • Gold Standard Ventures Corp. (TSX-V:GSV) closed a $16.25 million offering on a best efforts basis.
  • Belo Sun Mining Corp. (TSX:BSX) closed a $15 million offering on a strategic deal basis.    
  • Yangarra Resources Ltd. (TSX-V:YGR) closed a $20 million offering underwritten by a syndicate led by AltaCorp Capital on a bought deal basis.
  • Marlin Gold Mining Ltd. (TSX-V:MLN) closed an $8.75 million offering on a strategic deal basis.

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