Oreninc Index Up After Two Down Weeks

The Oreninc Index saw an increase for the week ending December 6, 2012 following two straight weeks of decline. In addition, the five-week moving average fell slightly, continuing a seven-week downward trend that started after the fundraising peak in mid-October. Similar to last week, brokered offerings made up a significant portion of all money announced, however total offerings and brokered offerings reached eight and seven-week lows, respectively.

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Summary:
  • Total number of opened deals fell to 33, a seven-week low.
  • Eight brokered deals were announced, an eight-week low; brokered dollars announced nearly doubled to $138 million.
  • Two bought deals were announced for $96 million, a three-week high.
  • Total dollars announced increased to $165 million.
  • Average deal size jumped to $5.0 million.
Major Financing Openings:
  • OceanaGold Corporation (TSX:OGC) opened a $93.3 million offering underwritten by a syndicate led by Macquarie Capital Markets on a bought deal basis. The deal is expected to close on or about December 18, 2012.
  • Veris Gold Corp. (TSX:VG) opened a $25.02 million offering underwritten by a syndicate led by Haywood Securities on a best efforts basis. Each unit includes a 1/2 warrant that expires in 48 months.
  • Mawson West Limited (TSX:MWE) opened a $12 million offering underwritten by a syndicate led by Cormark Securities on a best efforts basis. The deal is expected to close on or about December 19, 2012.
  • Northern Spirit Resources Inc. (TSX-V:NS) opened a $6 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months. The deal is expected to close on or about December 31, 2012.
Major Financing Closings:
  • Continental Gold Limited (TSX:CNL) closed an $86.32 million offering underwritten by a syndicate led by Dundee Securities on a bought deal basis.
  • Rainy River Resources Ltd. (TSX-V:RR) closed a $57.5 million offering underwritten by a syndicate led by National Bank Financial on a bought deal basis.
  • Niko Resources Ltd. (TSX-V:NKO) closed a $50 million offering on a best efforts basis.
  • Cequence Energy Ltd. (TSX:CQE) closed a $16 million offering underwritten by a syndicate led by Peters & Co. Ltd. on a best efforts basis.