Oreninc Index Update: July 30, 2015
Oreninc Index Stays Low
The Oreninc Index stayed low for the week ending July 3, 2015. Total dollars announced fell to $29.3m, an 18-week low. One brokered financing was announced for $0.75m, a two-week low; no bought deals were announced for the sixth straight week.
The largest deal of the week was Barrick Gold’s (NYSE:ABX) sale of a 50% stake in their Zaldivar copper mine in Northern Chile to Antofagasta PLC (LON:ANTO) for just over $1bn in cash. Gold remained flat after last week’s steep fall, and iron ore had a surprisingly decent week.
As the summer lull continues, one of the bigger issues, specific to this year’s downturn, is the dramatic decrease in the number of announced and completed bought deals; with this being the sixth straight week of no bought deals announced. While a decline in broker activity during the summer is not unusual, the decline in bought deals completed this year is. It will be interesting to see if this is a summer-only shift that picks back up in the fall.
Summary:
- Number of financings increased to 26, a five-week high.
- One brokered financings was announced for $0.75m, a two-week low.
- No bought deal financings were announced for the sixth straight week.
- Total dollars fell to $29.3m, an 18-week low.
- Average offer size decreased to $1.13m, a 23-week low.
Major Financing Openings:
- Striker Exploration Corp. (TSX-V:SKX) opened a $8 million offering on a best efforts basis. The deal is expected to close on or about August 5, 2015.
- California Gold Mining Inc. (TSX-V:CGM) opened a $6 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
- Kennady Diamonds Inc. (TSX-V:KDI) opened a $4 million offering on a best efforts basis.
- Zenyatta Ventures Ltd. (TSX-V:ZEN) opened a $2 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.
Major Financing Closings:
- Western Lithium USA Corporation (TSX:WLC) closed a $6.5 million offering on a best efforts basis.
- Barkerville Gold Mines Ltd. (TSX-V:BGM) closed a $3 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.
- Galantas Gold Corporation (TSX-V:GAL) closed a $2.4 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 12 months.
- Novo Resources Corp. (CNSX:NVO) closed a $1.99 million offering on a best efforts basis.
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