Oreninc Index Update: October 23, 2014

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Oreninc Index Crashes Back to Reality

The Oreninc Index crashed back down to reality for the week ending October 23, 2014. Total dollars announced dropped to $36.2m, a ten-week low. Three brokered deals were announced for $24.6m, a two-week low; two bought deals were announced for $24.1m, also a two-week low. Deals announced dropped to 16, a 41-week low.

Deals for the week were lead by Fortress Minerals Corp.’s (TSX-V:FST) purchase of Kinross Gold Corp.’s (TSX:K) Ecuadorian Fruta del Norte gold project for US$240m. Kinross took a $720m writedown on the project last year. 

After a solid performance last week, it is discouraging to see such a harsh week in the financing market. However, in a climate where the only thing holding up the Index’s performance is the large rogue deal, a week without any is bound to have an impact. With each passing week it is becoming clearer that fall 2014 is unlikely to bring any market rebound. 

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Summary:

  • Deals dropped to 16, a 41-week low.
  • Three brokered deals were announced for $24.6m, a two-week low.
  • Two bought deals were announced for $24.1m, a two-week low.
  • Total dollars crashed to $36.2m, a ten-week low.
  • Average deal size fell to $2.3m, a five-week low.

Major Financing Openings:

  • Contact Exploration Inc. (TSX-V:CEX) opened a $20.02 million offering underwritten by a currently unannounced syndicate of underwriters on a bought deal basis. The deal is expected to close on or about November 13, 2014.
  • Atacama Pacific Gold Corporation (TSX-V:ATM) opened a $5.25 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.
  • Talon Metals Corp. (TSX:TLO) opened a $4.12 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about November 6, 2014.
  • Northquest Ltd. (TSX-V:NQ) opened a $1.2 million offering on a best efforts basis.

Major Financing Closings:

  • Blackbird Energy (TSX-V:BBI) closed a $37.41 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis.
  • Excelsior Mining Corp. (TSX-V:MIN) closed a $10.6 million offering on a strategic deal basis.   
  • Falco Resources Ltd. (TSX-V:FPC) closed a $7.05 million offering underwritten by a syndicate led by Scotia Capital Inc. on a best efforts basis.    
  • Cassidy Gold Corp. (TSX-V:CDX) closed a $6.11 million offering on an insiders only basis.

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