Oreninc Index Remains Level
The Oreninc Index remained flat for the week ending July 10, 2014. The week included America’s Fourth of July holiday; while it did not affect the amount of trading days, deal flow slowed with less than $3m announced on four deals that day. Total dollars announced for the week were $83.4m, a three-week low. Brokered and bought dollars announced were both $44m on four deals, both two-week highs.
The run of copper deals continued this week with Boliden purchasing Altona Mining’s Kylylahti copper mine in Finland for US$95m. The activity seen this July is encouraging, given the month’s history of being one of the two worst months of the year for financing.
Summary:
- Deals announced fell to 27, a three-week low.
- Four brokered deals were announced for $44m, a two-week high.
- Four bought deals were announced for $44m, a two-week high.
- Total dollars dropped to $83.4m, a three-week low.
- Average deal size rose to $3.1m, a two-week high.
Major Financing Openings:
- Dalradian Resources Inc. (TSX:DNA) opened a $25.11 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about July 31, 2014.
- Canadian Zinc Corp. (TSX-V:CZN) opened a $15 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about July 31, 2014.
- Klondex Mines Ltd. (TSX:KDX) opened a $14 million offering underwritten by a syndicate led by GMP Securities L.P. on a bought deal basis. The deal is expected to close on or about July 30, 2014.
- PetroNova Inc. (TSX-V:PNA) opened a $8 million offering on a best efforts basis.
Major Financing Closings:
- Crocotta Energy Inc. (TSX:CTA) closed a $45 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis.
- Caza Oil & Gas Inc. (TSX:CAZ) closed a $10.78 million offering on a best efforts basis.
- NovaCopper Inc. (TSX:NCQ) closed a $8.03 million offering on a insiders only basis. Each unit includes 1 warrant that expires in 60 months.
- Twin Butte Energy Ltd. (TSX:TBE) closed a $3.27 million offering on a best efforts basis.