Oreninc Index Hits Three-Week Low

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The Oreninc Index hit a three-week low in the US Election fueled week ending November 10, 2016. Total dollars announced fell to $97.8m, a three-week low. Two brokered and bought deals were announced for $45m, both three-week lows.

The metals world was turned upside down with Donald J. Trump’s surprise election victory in the United States, with industrial metals posting an extraordinary week with copper and iron ore the most impressive, hitting 18-month and two-year highs respectively. Gold was the expected outlier, ending the week at it’s lowest price in four months. The biggest M&A news from the week was South32’s (ASX:S) acquisition of Peabody Energy’s (OTCMKTS: BTUUQ) Metropolitan Coal Mine in Australia for $200mn.

Since the last Oreninc Index, published for the week ending February 11, 2016, the Index has raised nicely, performing at a higher level than it has in years, particularly over the summer months. Shorter term, the index is still performing well, and it will be fascinating to see how the seemingly sudden shift in metals price affects explorers ability to raise money over the coming weeks and months.

 

Summary:

Number of financings decreased to 37, a three-week low.

Two brokered financings were announced for $45m, a three-week low.

Two bought deal financings were announced for $45m, a three-week low.

Total dollars fell to $97.8m, a three-week low.

Average offer size dropped to $2.6m, a six-week low.

 

Major Financing Openings:

 

·                  Arizona Mining Inc. (TSX:AZ) opened a $25.01 million offering underwritten by a syndicate led by Scotia Capital Inc. on a bought deal basis. The deal is expected to close on or about December 6, 2016.

·                  Timmins Gold Corp. (TSX:TMM) opened a $20.02 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 18 months. The deal is expected to close on or about November 30, 2016.

·                  Kaizen Discovery Inc. (TSX-V:KZD) opened a $7.3 million offering on a best efforts basis. The deal is expected to close on or about November 18, 2016.

·                  Titanium Corporation Inc. (TSX-V:TIC) opened a $6.53 million offering on a best efforts basis.  

 

Major Financing Closings:

 

·                  Mitra Energy Inc. (TSX-V:MTE) closed a $53 million offering on a best efforts basis.   

·                  Rubicon Minerals Corporation (TSX:RMX) closed a $45.01 million offering underwritten by a syndicate led by BMO Capital Markets on a best efforts basis.   

·                  Eco Oro Minerals Corp. (TSX:EOM) closed a $20.1 million offering on a strategic deal basis.

·                  Select Sands Corp (TSX-V:SNS) closed a $16.46 million offering on a best efforts basis.

 

 

Prepared by Paul Ostrow

 

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