Oreninc Index Update: October 29, 2015

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Oreninc Index Shows Signs of Life

The Oreninc Index feigned life for the week ending October 29, 2015. Total dollars announced rose to $42.4m. Two brokered financings were announced for $33.7m, a six-week high; one bought deal financing was announced for $33.2m, also a six-week high. However total deals announced dropped to a 12-week low

Deal making was very light for the week, with Cyprium Mining Corp. (TSX-V:CUG) closing an acquisition of a 53% controlling interest in a joint venture in the Potosi silver mine in Mexico. The joint venture will have a term of 20 years and will be carried out through Cypval Mining SAPI de CV, a Mexico-based private company. The gold price fell sharply for the week on news that the US federal reserve intends to keep interest rates the same and are more likely to raise rates in December. Iron ore also had a rough week, falling below $50 a tonne.

While the Index was up for the week, the drop in the price of key commodities and the lack of any substantial deals continue the narrative that this has been a rough fall in the natural resources space. Still, it is good to see broker participation, although more is needed before we can really feel like they are back with any force.

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 Summary:

  • Number of financings dropped to 18, a 12-week low.
  • Two brokered financings were announced for $33.7m, a six-week high.
  • One bought deal financing was announced for $33.2m, a six-week high.
  • Total dollars jumped to $42.4m, a two-week high.
  • Average offer size increased to $2.4m, a two-week high.  

Major Financing Openings:

  • Sandstorm Gold Ltd. (TSX-V:SSL) opened a $33.16 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 60 months.
  • CB Gold Inc. (TSX-V:CBJ) opened a $1.8 million offering on a strategic deal basis. The deal is expected to close on or about November 5, 2015.
  • Zephyr Minerals Ltd. (TSX-V:ZFR) opened a $1.35 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 22 months.
  • Arena Minerals Inc. (TSX-V:AN) opened a $1 million offering on a strategic deal basis. The deal is expected to close on or about November 15, 2015.

Major Financing Closings:

  • Corsa Coal Corp. (TSX-V:CSO) closed a $9.42 million offering on a best efforts basis.    
  • Balmoral Resources Ltd. (TSX:BAR) closed a $4.54 million offering on a best efforts basis.    
  • GB Minerals Ltd. (TSX-V:GBL) closed a $3.97 million offering on a best efforts basis.    
  • DuSolo Fertilizers Inc. (TSX-V:DSF) closed a $2.43 million offering on a best efforts basis.

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