Oreninc Index Update: September 24, 2015

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Oreninc Index Falls to Three-Week Low

The Oreninc Index fell to a three-week low for the week ending September 24, 2015. Total dollars announced dropped to $26m, a three-week low. No brokered or bought deal financings were announced, 10 and three-week lows respectively.

Deal making was up a bit for the week, with the largest deal of note being Suncor Energy’s (TSX:SU) purchase of an additional 10% stake in the Fort Hills oil sands project from partner Total E&P Canada for $310m. Gold increased sharply for the week, up 5% since the US Federal Reserve’s announcement last week that they would hold rates steady. Multiple industrial metals, including copper and zinc, had traumatic weeks, with zinc falling to a five-year low.

After last week’s stellar performance, it is disappointing to see the Index as low as it fell this week. The coming weeks will likely be telling in what we can expect over the coming months.

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 Summary:

  • Number of financings jumped to 26, a five-week high.
  • No brokered financings were announced for the first time in 10 weeks.
  • No bought deal financings were announced for the first time in three weeks.
  • Total dollars dropped to $26m, a three-week low.
  • Average offer size decreased to $1m, a four-week low.  

Major openings included:

  • Sunshine Oilsands Ltd. (TSX:SUO) opened a $8.48 million offering on a strategic deal basis. The deal is expected to close on or about October 5, 2015.
  • Timmins Gold Corp. (TSX:TMM) opened a $6 million offering on a strategic deal basis. Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about September 30, 2015.
  • Harte Gold Corp. (TSX-V:HRT) opened a $2.5 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.
  • Treasury Metals Inc. (TSX:TML) opened a $2.04 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about September 25, 2015.

Major closings included:

  • Pretium Resources Inc. (TSX:PVG) closed a $53 million offering on a strategic deal basis.    
  • Minaurum Gold Inc. (TSX-V:MGG) closed a $2.91 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
  • Equitas Resources Corp. (TSX-V:EQT) closed a $2 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.
  • Cameo Resources Corp. (TSX-V:CRU.H) closed a $0.8 million offering on a best efforts basis.

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