Oreninc Index Update: September 17, 2015

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Oreninc Index Leaps to 13-Week High

The Oreninc Index jumped to a 13-week high for the week ending September 17, 2015. Total dollars announced exploded to $161.1m, an 18-week high. Two brokered and bought deal financings were announced for $85m, 18- and 23-week highs respectively.

The top dealmaking news of the week came from Glencore plc (LON:GLEN), who is said to be in talks with multiple companies to sell portions of the future production of three of its Chilean and Peruvian copper mines via streaming transactions. Gold was up on the week following news that the US Federal Reserve would not be raising interest rates quite yet. Iron ore was down slightly after the previous week’s 10-week high.

As expected, the first full week after the Labor Day holiday marks an increase to levels not seen since June. While expected, the jump in performance should be seen as a promising sign that maybe the financing market can crawl out of the depths reached over summer, even if it may not be at the levels the industry would like.

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 Summary:

  • Number of financings dropped to 19, a three-week low.
  • Two brokered financings were announced for $85m, an 18-week high.
  • Two bought deal financings were announced for $85m, a 23-week high.
  • Total dollars exploded to $161.1m, a 18-week high.
  • Average offer size rose to $8.5m, a YTD high.  

Major openings included:

  • Cardinal Energy Ltd. (TSX:CJ) opened a $50.01 million offering underwritten by a syndicate led by CIBC on a bought deal basis. The deal is expected to close on or about October 6, 2015.
  • Kennady Diamonds Inc. (TSX-V:KDI) opened a $48 million offering on a best efforts basis. The deal is expected to close on or about September 30, 2015.
  • Dalradian Resources Inc. (TSX:DNA) opened a $35 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. The deal is expected to close on or about October 7, 2015.
  • Pretium Resources Inc. (TSX:PVG) opened a $20 million offering on a strategic deal basis. The deal is expected to close on or about September 18, 2015.

Major closings included:

  • Western Potash Corp. (TSX:WPX) closed a $80 million offering on a strategic deal basis.    
  • North American Palladium Ltd. (TSX:PDL) closed a $50.03 million offering on a best efforts basis.    
  • Auryn Resources Inc. (TSX-V:AUG) closed a $5.8 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.
  • AuRico Metals Inc. (TSX:AMI) closed a $5.6 million offering on a strategic deal basis.

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