Oreninc Index Rebounds to Modest Levels
The Oreninc Index rebounded to modest levels for the week ending November 13, 2014. Total dollars jumped to $101.6m, a four-week high. Five brokered deals were announced for $73m, a four-week high; two brokered deals were announced for $70m, also a four-week high.
There were a couple of smaller deals for the week, with the Scorpio Mining (TSX:SPM) and U.S. Silver & Gold (TSX:USA) merger being the most significant transaction. The company will retain Scorpio Mining as their name. Commodity prices for the week were mostly flat.
After a couple weeks of truly awful performance, this week’s financing activity is a welcome reprieve. Still, it’s hard to get too excited when the best week in a while is still below our threshold for a healthy financing market.
Summary:
- Deals rose to 32, a seven-week high.
- Five brokered deals were announced for $73m, a four-week high.
- Two bought deals were announced for $70m, a four-week high.
- Total dollars jumped to $101.6m, a four-week high.
- Average deal size increased to $3.2m, a four-week high.
Major Financing Openings:
- Painted Pony Petroleum Ltd. (TSX:PPY) opened a $50.04 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about December 2, 2014.
- GoGold Resources Inc. (TSX:GGD) opened a $20 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. The deal is expected to close on or about December 3, 2014.
- Premier Gold Mines Limited (TSX:PG) opened a $7.35 million offering on a best efforts basis. The deal is expected to close on or about November 25, 2014.
- Blackbird Energy (TSX-V:BBI) opened a $5 million offering on a best efforts basis.
Major Financing Closings:
- Contact Exploration Inc. (TSX-V:CEX) closed a $23.02 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis.
- NioCorp Developments Ltd. (TSX-V:NB) closed a $10.59 million offering underwritten by a syndicate led by Mackie Research Capital Corporation on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
- NexGen Energy Ltd. (TSX-V:NXE) closed a $10.01 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis.
- Elkwater Resources Ltd. (TSX-V:ELW) closed a $10 million offering underwritten by a syndicate led by Desjardins Capital Markets on a bought deal basis.