Oreninc Index Update: October 15, 2015

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Oreninc Index Jumps to Four-Week High

The Oreninc Index jumped to a four-week high for the holiday-shortened week ending October 19, 2015. Total dollars announced exploded to $129.8m, a four-week high. No brokered financings were announced for the third time in four weeks; no bought deals were announced for the fourth straight week.

The top dealmaking news of the week was reports that Mick Davis’ X2 Resources appears to be the last remaining bidder for Rio Tinto Group’s (NYSE:RIO) Australian Hunter Valley coal assets, with talk of a deal that could be around US$2.2bn. The gold price exploded for the week, hitting its highest price in almost four months.

While it is only one week, it is nice to see some activity after a couple of disappointing weeks. Still, the lack of brokered deals remains a concern, and we will see if more companies attempt to raise large amounts of cash via non-brokered deals.   

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 Summary:

  • Number of financings increased to 22, a two-week high.
  • No brokered financings were announced for the third time in four weeks.
  • No bought deal financings were announced for the fourth straight week.
  • Total dollars exploded to $129.8m, a four-week high.
  • Average offer size jumped to $5.9m, a four-week high.  

Major Financing Openings:

  • Ithaca Energy Inc. (TSX:IAE) opened a $85.96 million offering on a strategic deal basis.
  • Teranga Gold Corporation (TSX:TGZ) opened and subsequently closed $22.74 million offering on a strategic deal basis. 
  • Skeena Resources Limited (TSX-V:SKE) opened a $6 million offering on a best efforts basis.
  • Balmoral Resources Ltd. (TSX:BAR) opened a $4.5 million offering on a best efforts basis. The deal is expected to close on or about October 28, 2015.

Major Financing Closings:

  • Horizonte Minerals plc (TSX:HZM) closed a $3.1 million offering on a best efforts basis.
  • Harte Gold Corp. (TSX-V:HRT) closed a $2.3 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.
  • Forsys Metals Corp. (TSX:FSY) closed a $1.84 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • Rugby Mining Ltd. (TSX-V:RUG) closed a $0.67 million offering on a best efforts basis.

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