Oreninc Index Remains in Funk
The Oreninc Index remained in a funk for the week ending July 23, 2015. Total dollars announced jumped to $45.4m, a two-week high. Three brokered financings were announced for $4.6m, a three-week high; no bought deals were announced for the fifth straight week.
Deal-making was mostly quiet; Royal Gold (NASDAQ:RGLD) announced its agreement with New Gold Inc. (NASDAQ:NGD) to acquire a percentage of the gold and silver production from New Gold’s Rainy River project for $175m. Gold fell even further into its five-year low during the week, before recovering slightly. Iron ore also had a down week.
The summer funk appears to be in full swing and this season seems particularly bleak considering the fall in commodity prices and chinese equities. While this may be a particularly bad year, it is important to remember that this summer lull is an unsurprising trend in the annual financing cycle.
Summary:
- Number of financings fell to 20, a 14-week low.
- Three brokered financings were announced for $4.6m, a three-week high.
- No bought deal financings were announced for the fifth straight week.
- Total dollars jumped to $45.4m, a two-week high.
- Average offer size decreased to $2.3m, a three-week high.
Major Financing Openings:
- Red Eagle Mining Corporation (TSX-V:RD) opened and closed a $19.35 million offering on a best efforts basis. The deal is expected to close on or about August 21, 2015.
- Heron Resources Ltd. (TSX:HER) opened a $6.8 million offering on a strategic deal basis. The deal is expected to close on or about August 24, 2015.
- IMX Resources (TSX:IXR) opened a $3 million offering on a best efforts basis.
- Maya Gold & Silver Inc. (TSX-V:MYA) opened a $2.5 million offering underwritten by a syndicate led by Jacob Securities Inc. on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
Major Financing Closings:
- Junex Inc. (TSX-V:JNX) closed a $7.5 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.
- Roxgold Inc. (TSX-V:ROG) closed a $6.29 million offering on a strategic deal basis.
- SouthGobi Resources Ltd. (TSX:SGQ) closed a $3.7 million offering on a best efforts basis.
- Indico Resources Ltd. (TSX-V:IDI) closed a $3 million offering on a strategic deal basis.