Oreninc Index Update: November 27, 2014

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Oreninc Index Declines

The Oreninc Index declined for the week ending November 27, 2014. Total dollars fell to $101.4m, a three-week low. One brokered deal was announced for $2m, a three-week low; and no bought deals were announced for the second time in four weeks.

The US Thanksgiving did not close Canadian markets, but it did seem to impact dealflow as no major deals were announced. Oil had a truly horrific week, falling to $70 a barrel on news that OPEC does not intend to alter crude production. Iron ore also had another miserable week, falling below $70 a ton for the first time since 2009. In better news, gold seems to have leveled off and, at least momentarily, stymied the fall that it has experienced since summer. As we head into the holiday season, it will be interesting to see if companies take advantage of raising last minute flow-through, as has happened in previous years, or if they close the doors and bunker down for a very cold winter.

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 Summary:

  • Deals dropped to 33, a three-week low.
  • One brokered deal was announced for $2m, a three-week low.
  • No bought deals were announced for the second time in four weeks
  • Total dollars fell to $101.4m, a three-week low.
  • Average deal size decreased to $3.1m, a two-week low.

Major Financing Openings:

  • Paladin Energy Ltd. (TSX:PDN) opened a $58.96 million offering on a strategic deal basis.
  • International Tower Hill Mines Ltd. (TSX:ITH) opened a $8.39 million offering on a best efforts basis. The deal is expected to close on or about December 12, 2014.
  • Cadan Resources Corporation (TSX-V:CXD) opened a $6 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 12 months.
  • St. Augustine Gold and Copper Limited (TSX:SAU) opened a $4.5 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major Financing Closings:

  • Osisko Gold Royalties Ltd. (TSX:OR) closed a $42 million offering on a strategic deal basis.    
  • Virginia Mines Inc. (TSX:VGQ) closed a $28 million offering on a strategic deal basis.    
  • Premier Gold Mines Limited (TSX:PG) closed a $9.19 million offering on a best efforts basis.    
  • Duluth Metals Limited (TSX:DM) closed a $2.3 million offering on a strategic deal basis.

 

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