Oreninc Index Update: September 18, 2014

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Oreninc Index Falls Even Further

The Oreninc Index fell further to an overall five-week low for the week ending September 18, 2014. Total dollars fell were at $58.5m, a two-week high. Four brokered deals were announced for $8.7m, a two-week high. No bought deals were announced for the seventh time since the beginning of summer. The most shocking aspect of September so far has been the abysmal broker activity; it appears that bankers have stayed on the links to get in a couple rounds before the leaves turn.

Deals were light this week, as there were no big announcements from any majors. Juniors had some minor announcements, with Pacific Ridge Exploration (TSX-V:PEX) entering into an option agreement with Centerra Gold (TSX:CG) for their King Solomon Gold project in Nevada.

It is still early, and the poor performance of the past few weeks may be a result of a slightly stronger than anticipated July. Still, with the industry now in its third year of a down-turn, the chances that fundraising performance in the space will be improved in any significant way over last year is getting slimmer and slimmer with each passing week.

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Summary:

  • Deals announced fell to 31, a two-week low.
  • Four brokered deals were announced for $8.7m, a two-week high.
  • No bought deals were announced, tied for a three-week low.
  • Total dollars fell to $58.5m, a two-week low.
  • Average deal size crashed to $1.9m, a two-week low.

Major Financing Openings:

  • Kallisto Energy Corp (TSX-V:KEC) opened a $25.57 million offering on a best efforts basis.    
  • Energizer Resources Inc. (TSX:EGZ) opened a $5.3 million offering underwritten by an unnamed broker on a best efforts basis. The deal is expected to close on or about September 24, 2014.
  • Kennady Diamonds Inc. (TSX-V:KDI) opened a $5 million offering on a best efforts basis. The deal is expected to close on or about September 30, 2014.
  • Lincoln Mining Corporation (TSX-V:LMG) opened a $3.5 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.

Major Financing Closings:

  • Luna Gold Corp. (TSX:LGC) closed a $19.89 million offering on a best efforts basis. 
  • Leucrotta Exploration Inc. (TSX-V:LXE) closed a $13.01 million offering on an insiders only basis. Each unit includes 1 warrant that expires in 60 months.
  • Jet Metal Corp. (TSX-V:JET) closed a $3 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 60 months.
  • Donner Metals Ltd. (TSX-V:DON) closed a $1.93 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis.

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