Oreninc Index Update: October 16, 2014

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Oreninc Index Blasts Off Over Thanksgiving

The Oreninc Index rocketed forward in the Thanksgiving-shortened week ending October 16, 2014. Total dollars announced launched to $249m, the most since March. The main driver of this week’s surprising turnaround was two offerings for over $50m. Including a $100m offering by Elkwater Resources and a $75m rights offering by ShaMaran Petroleum.  This week is most likely a flash in the pan; if the large deals were excluded, it would have been merely a two-week high. However, given that holiday weeks don’t usually include such significant raises, it is a positive sign that offerings are being announced. Expect a comedown next week, but that’s the nature of a volatile Index.

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Summary:

  • Deals climbed to 24, a two-week high.
  • Three brokered deals were announced for $150m, a 31-week high.
  • Two bought deals were announced for $110m, the most since early March.
  • Total dollars bounced to $249m, a 32-week high.
  • Average deals skyrocketed to $10.4m, the highest in 2014.

Major Financing Openings:

  • Elkwater Resources Ltd. (TSX-V:ELW) opened a $100 million offering underwritten by a syndicate led by Desjardins Capital Markets on a bought deal basis. The deal is expected to close on or about October 29, 2014.
  • ShaMaran Petroleum Corp. (TSX-V:SNM) opened a $75 million rights offering.
  • Roxgold Inc. (TSX-V:ROG) opened a $30.03 million offering underwritten by a syndicate led by Cormark Securities Inc. on a best efforts basis. Each unit includes a 1/2 warrant that expires in 15 months. The deal is expected to close on or about November 4, 2014.
  • Balmoral Resources Ltd. (TSX:BAR) opened a $10.03 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. The deal is expected to close on or about November 6, 2014.

Major Financing Closings:

  • Mountain Province Diamonds Inc. (TSX:MPV) closed a $100 million offering underwritten by a syndicate led by BMO Capital Markets on a bought deal basis. The deal is expected to close on or about October 17, 2014.
  • Strategic Oil & Gas Ltd. (TSX-V:SOG) closed a $73.39 million offering on a best efforts basis. The deal is expected to close on or about October 15, 2014.
  • Arianne Phosphate Inc. (TSX-V:DAN) closed a $8 million offering underwritten by a syndicate led by Windermere Capital on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • IDM Mining Ltd. (TSX:IDM) closed a $2.48 million offering on a best efforts basis.

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