Oreninc Index Crashes Back to Reality
The Oreninc Index crashed back down to reality for the week ending October 23, 2014. Total dollars announced dropped to $36.2m, a ten-week low. Three brokered deals were announced for $24.6m, a two-week low; two bought deals were announced for $24.1m, also a two-week low. Deals announced dropped to 16, a 41-week low.
Deals for the week were lead by Fortress Minerals Corp.’s (TSX-V:FST) purchase of Kinross Gold Corp.’s (TSX:K) Ecuadorian Fruta del Norte gold project for US$240m. Kinross took a $720m writedown on the project last year.
After a solid performance last week, it is discouraging to see such a harsh week in the financing market. However, in a climate where the only thing holding up the Index’s performance is the large rogue deal, a week without any is bound to have an impact. With each passing week it is becoming clearer that fall 2014 is unlikely to bring any market rebound.
Summary:
- Deals dropped to 16, a 41-week low.
- Three brokered deals were announced for $24.6m, a two-week low.
- Two bought deals were announced for $24.1m, a two-week low.
- Total dollars crashed to $36.2m, a ten-week low.
- Average deal size fell to $2.3m, a five-week low.
Major Financing Openings:
- Contact Exploration Inc. (TSX-V:CEX) opened a $20.02 million offering underwritten by a currently unannounced syndicate of underwriters on a bought deal basis. The deal is expected to close on or about November 13, 2014.
- Atacama Pacific Gold Corporation (TSX-V:ATM) opened a $5.25 million offering on a best efforts basis. Each unit includes a 1/2 warrant that expires in 36 months.
- Talon Metals Corp. (TSX:TLO) opened a $4.12 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis. Each unit includes a 1/2 warrant that expires in 36 months. The deal is expected to close on or about November 6, 2014.
- Northquest Ltd. (TSX-V:NQ) opened a $1.2 million offering on a best efforts basis.
Major Financing Closings:
- Blackbird Energy (TSX-V:BBI) closed a $37.41 million offering underwritten by a syndicate led by National Bank Financial Inc. on a bought deal basis.
- Excelsior Mining Corp. (TSX-V:MIN) closed a $10.6 million offering on a strategic deal basis.
- Falco Resources Ltd. (TSX-V:FPC) closed a $7.05 million offering underwritten by a syndicate led by Scotia Capital Inc. on a best efforts basis.
- Cassidy Gold Corp. (TSX-V:CDX) closed a $6.11 million offering on an insiders only basis.