Oreninc Index Update: September 11, 2014

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Oreninc Index Falls to Four-Week Low

The Oreninc Index fell to a four-week low for the week ending September 11, 2014. Total dollars fell to $58.3m, a four-week low. Two brokered deals were announced for $5.5m, a four-week low; no bought deals were announced for the second time in six weeks. 

Deals for the week were stronger, with Agnico-Eagle Mines (TSX: AEM) agreeing to buy Cayden Resources (TSX-V: CYD) for $205m. Taseko Mines (TSX: TKO) agreed to buy Curis Resources (TSX: CUV) in an all-stock deal valued at $80m. Both deals are still subject to shareholder approval. 

Junior financing activity is down, but it appears that majors are at least out and trying to make things happen. While too early to tell if this is just a summer hang-over or a real issue, it is not a good sign that a high number of deals with a low number of overall dollars were announced. Juniors may be out trying to raise money, but it seems they just aren’t able to find investment appetite.

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Summary:

  • Deals announced rose to 34, a six-week high.
  • Two brokered deals were announced for $5.5m, a four-week low.
  • No bought deals were announced, a two-week low.
  • Total dollars fell to $58.3m, a four-week low.
  • Average deal size crashed to $1.7m, a 12-week low.

Major Financing Openings:

  • Blackdog Resources Ltd. (TSX-V:DOG) opened a $21 million offering on a best efforts basis.  
  • MNP Petroleum Corp. (TSX-V:MNP) opened an $8.1 million offering on a best efforts basis. Each unit includes a 1/2 warrant.
  • Branco Resources Ltd. (TSX-V:BNL) opened a $4.25 million offering on a best efforts basis.   
  • True North Gems Inc. (TSX-V:TGX) opened a $3 million offering on a best efforts basis.   

Major Financing Closings:

  • Belo Sun Mining Corp. (TSX:BSX) closed a $6.5 million offering on a best efforts basis.
  • High North Resources Ltd (TSX:HN) closed a $4 million offering underwritten by a syndicate led by GMP Securities L.P. on a best efforts basis.   
  • International Northair Mines Ltd. (TSX-V:INM) closed a $4 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months.
  • Golden Minerals Company (TSX:AUM) closed a $3.5 million offering underwritten by a syndicate led by Roth Capital on a best efforts basis.

 

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