Oreninc Index Update: October 30, 2014

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Oreninc Index Stays at Same Level

The Oreninc Index stayed level for the week ending October 30, 2014. Dollars announced dropped to $32.9m, a 19-week low. Three brokered deals were announced for $10.8m, a six-week low; two bought deals were announced for $10m, a three-week low.

Deals were light with no major buyouts or mergers of note. One noticeable piece of news is gold’s crash as the US Federal Reserve’s Quantitative Easing program concluded. The metal fell to a four-year low, with no real optimism in sight. This crash, mixed with the awful season oil prices have had, provides some explanation for the poor performance of this autumn’s Index. It’s hard to imagine a short-term future where those two keep falling and the natural resource financing market has any sort of recovery.

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Summary:

  • Deals rose to 28, a five-week high.
  • Three brokered deals were announced for $10.8m, a six-week low.
  • Two bought deals were announced for $10m, a three-week low.
  • Total dollars dropped to $32.9m, a 19-week low.
  • Average deal size fell to $1.1m, a 19-week low.

Major Financing Openings:

  • Elkwater Resources Ltd. (TSX-V:ELW) opened a $10 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 November 5, 2014.
  • Caiterra International Energy Corp. (TSX-V:CTI) opened a $5 million offering on a best efforts basis.    
  • PetroMaroc Corporation plc (TSX-V:PMA) opened a $3 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.
  • CB Gold Inc. (TSX-V:CBJ) opened a $2.97 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major Financing Closings:

  • Elkwater Resources Ltd. (TSX-V:ELW) closed a $90 million offering underwritten by a syndicate led by Desjardins Capital Markets on a bought deal basis.    
  • Azarga Uranium Corp. (TSX:AZZ) closed a $5 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
  • True North Gems Inc. (TSX-V:TGX) closed a $3 million offering on a best efforts basis.    
  • Forsys Metals Corp. (TSX:FSY) closed a $2.36 million offering on a best efforts basis.

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