Oreninc Index Update: September 25, 2014

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Oreninc Index Finally Shows Life

The Oreninc Index finally showed some life for the week ending September 25, 2014. Total dollars announced rose to $147.1m, a three-week high. Brokered dollars rose to $49.4m on five deals, a three-week high; two bought deals were announced for $30.4, also a three-week high.

Deals were light again this week, with the big news in the space coming by way of falling metals prices. Both ends of the metal spectrum were down, with gold hitting its lowest price since January on Thursday before a strong rally late in the day, and iron ore hitting its lowest point in five years on Tuesday. BHP also announced consideration of a secondary listing of its recently announced spin out on the London Stock Exchange after investor backlash on its initial intentions to not do so.

While the Index is still not high enough to stay encouraged for very long, it’s good to see some real money announced and some bankers in the mix, as opposed to the total lack of activity that has existed since the beginning of the month. We’ll see if the upcoming first full week of fall will encourage companies to raise money and, more importantly, cause investors to have actual interest in what the juniors are saying.

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Summary:

  • Deals announced remained at 31, tied for a three-week low.
  • Five brokered deals were announced for $49.4m, a three-week high.
  • Two bought deals were announced for $30.4m, a three-week high.
  • Total dollars rose to $147.1m, a three-week high.
  • Average deal size jumped to $4.7m, a three-week high.

Major Financing Openings:

  • Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $60 million offering on a best efforts basis.
  • Blackbird Energy (TSX-V:BBI) opened a $37.41 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis. The deal is expected to close on or about October 15, 2014.
  • NioCorp Developments Ltd. (TSX-V:NB) opened a $16.5 million offering underwritten by a syndicate led by Mackie Research Capital Corporation on a best efforts basis. Each unit includes 1 warrant that expires in 24 months. The deal is expected to close on or about October 15, 2014.
  • Focus Graphite Inc. (TSX-V:FKC) opened a $6.5 million offering on a best efforts basis.  Each unit includes 1 warrant that expires in 48 months.

Major Financing Closings:

  • Pine Cliff Energy Ltd. (TSX-V:PNE) closed a $60.07 million offering underwritten by a syndicate led by FirstEnergy Capital Corp. on a bought deal basis.    
  • Fission Uranium Corp. (TSX-V:FCU) closed a $14.4 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis.    
  • Columbus Gold Corp. (TSX-V:CGT) closed a $5.36 million offering on a best efforts basis.    
  • Rogue Resources Inc. (TSX-V:RRS) closed a $2.51 million offering on a best efforts basis.

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