Oreninc Index Rises Slightly
The Oreninc Index rose slightly for the week ending September 3, 2015. Total dollars jumped to $19.3m, a two-week high. One brokered financing was announced for $1m, also a two-week high; no bought deal financings were announced for the tenth time in the last 11 weeks.
The most notable deal making news of the week came from Vale (NYSE:VALE) as they completed a 36.4% stake sale of their iron ore based subsidiary Minerações Brasileiras Reunida for $1.08bn. Gold ended down for the week on the back of positive US job numbers. Iron ore had another surprisingly good week, up more than 20% from the record lows hit over the summer.
This week’s numbers, while an improvement, are still quite disappointing. Now that August is officially over, we will be able to get a better indication in the coming weeks of where the financing market stands and whether companies will be able to raise funds this fall.
Summary:
- Number of financings increased to 23, a two-week high.
- One brokered financing was announced for $1m, a two-week high.
- No bought deal financings were announced for the tenth time in the last 11 weeks.
- Total dollars jumped to $19.3m, a two-week high.
- Average offer size rose to $1m, a two-week high.
Major openings included:
- AuRico Metals Inc. (TSX:AMI) opened a $5.6 million offering on a strategic deal basis.
- Perisson Petroleum Corporation (CSE:POG) opened a $2.1 million offering on a best efforts basis.
- Corvus Gold Inc. (TSX:KOR) opened and closed a $2 million offering on a strategic deal basis.
- Prophecy Development Corp. (TSX:PCY) opened a $2 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 60 months.
Major closings included:
- Africa Oil Corp (TSX:AOI) closed a $65.46 million offering on a strategic deal basis.
- Northern Spirit Resources Inc. (TSX-V:NS) closed a $20.94 million offering on a best efforts basis.
- Integra Gold Corp. (TSX-V:ICG) closed a $14.58 million offering on a best efforts basis.
- Northern Dynasty Minerals Ltd. (TSX:NDM) closed a $10.12 million offering on a best efforts basis.