Oreninc Index Update: October 22, 2015

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 Oreninc Index Five-Week Average Falls to Five-Week Low

The Oreninc Index five-week average fell to a five-week low for the week ending October 22, 2015. Total dollars announced fell to $41.6m, a four-week low. No brokered financings were announced for the fourth time in five weeks, and no bought deal financings were announced for the fifth straight week.

The top dealmaking news of the week was the finalization of OceanaGold Corporation’s (ASX:OGC) purchase of Newmont Mining Corporation’s (NYSE:NEM) Waihi gold mining operation for $106m. Gold prices were down for the week, though they retained much of the value they had gained the week prior.

Another week and still no sign of a resurgence of brokered or bought deal financings. While companies are finding creative ways to finance their projects, the complete lack of interest by bankers to get involved with metals and mining should be a concern for the industry.

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Summary:

  • Number of financings increased to 30, a 17-week high.
  • No brokered financings were announced for the fourth time in five weeks.
  • No bought deal financings were announced for the fifth straight week.
  • Total dollars fell to $41.6m, a four-week low.
  • Average offer size dropped to $1.4m, a four-week low.  

Major Financing Openings:

  • Corsa Coal Corp. (TSX-V:CSO) opened a $9.42 million offering on a best efforts basis. The deal is expected to close on or about October 23, 2015.
  • Wesdome Gold Mines Ltd. (TSX:WDO) opened a $5 million offering on a best efforts basis.    
  • GB Minerals Ltd. (TSX-V:GBL) opened a $4 million offering on a best efforts basis.    
  • Mawson Resources Limited (TSX:MAW) opened a $3 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major Financing Closings:

  • Ithaca Energy Inc. (TSX:IAE) closed a $85.96 million offering on a strategic deal basis.    
  • Timmins Gold Corp. (TSX:TMM) closed a $6 million offering on a strategic deal basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • Red Tiger Mining Inc. (TSX-V:RMN) closed a $1.61 million offering on a strategic deal basis.    
  • Mkango Resources Ltd. (TSX-V:MKA) closed a $1.13 million offering on a best efforts

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