Oreninc Index Falls to Lowest Level in Year
The Oreninc Index continued its turbulent summer, falling to its lowest level in over a year for the week ending August 1, 2013. Total amount opened for the week fell 80% to $22.1 million. In addition to the lack of overall fundraising, broker activity was down sharply with only one deal for $4 million. This serves as a sobering reminder of the current volatility in the space. Next week should improve marginally as we inch closer to the historically more active fall months.
Summary:
- Total deals announced dropped to 21, a three-week low.
- One brokered deal was announced for $4 million, a nine-week low.
- One bought deal was announced for $4 million, a three-week low.
- Total dollars announced fell to $22.1 million, a 53-week low.
- Average deal size slid to $1.1 million, a 30-week low.
Major Financing Openings:
- CBM Asia Development Corp. (TSX-V:TCF) opened a $5 million offering on a best efforts basis.
- Canadian Zinc Corp. (TSX-V:CZN) opened a $4.01 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. The deal is expected to close on or about August 20, 2013.
- Kombat Copper Inc. (TSX-V:KBT) opened a $3 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
- NexGen Energy Ltd. (TSX-V:NXE) opened a $3.54 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months. The deal is expected to close on or about August 5, 2013.
Major Financing Closings:
- Roxgold Inc. (TSX-V:ROG) closed a $10.25 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis. The deal was expected to close on or about August 1, 2013.
- Shoreline Energy Corporation (TSX:SEQ) closed a $5.57 million offering underwritten by a syndicate led by Casimir Capital Ltd. on a best efforts basis. The deal was expected to close on or about May 1, 2013.
- Champion Iron Mines Limited (TSX:CHM) closed a $3 million offering on a strategic deal basis. Each unit includes 1 warrant that expires in 24 months.
- Arianne Phosphate Inc. (TSX-V:DAN) closed a $3.55 million offering on a best efforts basis.