Oreninc Index Update: November 6, 2014

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Oreninc Index Crashes to Lowest Level Since January

The Oreninc Index crashed to its lowest level since January for the week ending November 6, 2014. Total dollars announced fell to $11m, a YTD low. One brokered deal was announced for $0.7m, a 12-week low; no bought deals were announced for the second straight week. 

Deals for the week were a bit heavier, the largest being Antofagasta plc’s agreement to buy Duluth Metals Ltd. for C$96m, and with it the remaining 60% stake in the Twin Metals copper and nickel project in the United States. Metal prices for the week were gruesome, with iron ore falling to a 64-month low and gold falling to a four-and-a-half-year low.

There are not many ways to spin a week like this in a positive way, other than to say it can’t get that much worse.

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Summary:

  • Deals fell to 19, a two-week low.
  • One brokered deal was announced for $0.7m, a 12-week low.
  • No bought deals were announced for the second straight week.
  • Total dollars crashed to $11m, a YTD low.
  • Average deal size dropped to $0.6m, a YTD low.

Major Financing Openings:

  • Petro One Energy Corp. (TSX-V:POP) opened a $2 million offering on a strategic deal basis. Each unit includes 1 warrant that expires in 24 months. The deal is expected to close on or about November 30, 2014.
  • Explor Resources Inc. (TSX-V:EXS) opened a $1.2 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • Prosperity Goldfields Corp (TSX-V:PPG) opened a $1 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
  • Horizon Petroleum plc (TSX-V:HPL) opened a $0.8 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major Financing Closings:

  • Roxgold Inc. (TSX-V:ROG) closed a $30.03 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. Each unit included a 1/2 warrant that expires in 15 months.
  • Balmoral Resources Ltd. (TSX:BAR) closed a $10.03 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis.    
  • Regulus Resources Inc. (TSX-V:PMA) closed a $5 million offering on a best efforts basis. Each unit included a 1/2 warrant that expires in 36 months.
  • Talon Metals Corp. (TSX:TLO) closed a $4.43 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis.

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