Oreninc Index Update: November 6, 2014
Oreninc Index Crashes to Lowest Level Since January
The Oreninc Index crashed to its lowest level since January for the week ending November 6, 2014. Total dollars announced fell to $11m, a YTD low. One brokered deal was announced for $0.7m, a 12-week low; no bought deals were announced for the second straight week.
Deals for the week were a bit heavier, the largest being Antofagasta plc’s agreement to buy Duluth Metals Ltd. for C$96m, and with it the remaining 60% stake in the Twin Metals copper and nickel project in the United States. Metal prices for the week were gruesome, with iron ore falling to a 64-month low and gold falling to a four-and-a-half-year low.
There are not many ways to spin a week like this in a positive way, other than to say it can’t get that much worse.
Summary:
- Deals fell to 19, a two-week low.
- One brokered deal was announced for $0.7m, a 12-week low.
- No bought deals were announced for the second straight week.
- Total dollars crashed to $11m, a YTD low.
- Average deal size dropped to $0.6m, a YTD low.
Major Financing Openings:
- Petro One Energy Corp. (TSX-V:POP) opened a $2 million offering on a strategic deal basis. Each unit includes 1 warrant that expires in 24 months. The deal is expected to close on or about November 30, 2014.
- Explor Resources Inc. (TSX-V:EXS) opened a $1.2 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
- Prosperity Goldfields Corp (TSX-V:PPG) opened a $1 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
- Horizon Petroleum plc (TSX-V:HPL) opened a $0.8 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
Major Financing Closings:
- Roxgold Inc. (TSX-V:ROG) closed a $30.03 million offering underwritten by a syndicate led by Cormark Securities Inc. on a bought deal basis. Each unit included a 1/2 warrant that expires in 15 months.
- Balmoral Resources Ltd. (TSX:BAR) closed a $10.03 million offering underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis.
- Regulus Resources Inc. (TSX-V:PMA) closed a $5 million offering on a best efforts basis. Each unit included a 1/2 warrant that expires in 36 months.
- Talon Metals Corp. (TSX:TLO) closed a $4.43 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis.
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