Oreninc Index Update: October 8, 2015

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Oreninc Index Falls and Continues Lull 

The Oreninc Index fell and continued its lull for the week ending October 9, 2015. Total dollars announced fell to $45.7m, a two-week low. No brokered financings were announced for the second time in three weeks; no bought deal financings were announced for the third straight week. 

The largest deal of the week was Teck Resources’ (NYSE:TCK) streaming deal with Franco-Nevada (NYSE:FNV) in which Franco-Nevada will pay Teck US$610m for its silver stream from the Antamina copper mine in Peru. The gold price was way up for the week on the back of weak US economic news. Iron ore was also up for the week. 

While we are seeing a broad slowdown in private placement opening amounts, the real issue, in terms of performance, is lack of broker involvement. Until brokerage houses feel comfortable getting back into the market in a big way, it is hard to see a path to improvement in this financing market. 

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Summary:

  • Number of financings dropped to 21, a three-week low.
  • No brokered financings were announced for the second time in three weeks.
  • No bought deal financings were announced for the third straight week.
  • Total dollars fell to $45.7m, a two-week low.
  • Average offer size increased to $2.2m, a three-week high.  

Major Financing Openings:

  • Seabridge Gold Inc. (TSX:SEA) opened a $14.58 million offering on a insiders only basis.    
  • Excelsior Mining Corp. (TSX-V:MIN) opened a $9.06 million offering on a strategic deal basis.   
  • Range Energy Resources Inc. (CSE:RGO) opened a $5 million offering on a best efforts basis. Each unit includes one warrant that expires in 60 months. 
  • Highland Copper Company Inc. (TSX-V:HI) opened and subsequently closed a $3.89 million offering on a best efforts basis.    

Major Financing Closings:

  • Cardinal Energy Ltd. (TSX:CJ) closed a $55.01 million offering underwritten by a syndicate led by CIBC on a bought deal basis.    
  • Kennady Diamonds Inc. (TSX-V:KDI) closed a $48.12 million offering on a best efforts basis.   
  • Dalradian Resources Inc. (TSX:DNA) closed a $40.25 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. Each unit includes 1 warrant that expires in 24 months. 
  • Focus Graphite Inc. (TSX-V:FMS) closed a $0.92 million offering on a best efforts basis. 

 

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