Oreninc Index Jumps to Five-Week High
The Oreninc Index jumped to a five-week high for the week ending May 14, 2015. Total dollars announced exploded to $243.7m, a 30-week high. Five brokered financings were announced for $106.1m, a five-week high; Two bought deals were announced for $69m, also a five-week high.
Deal-making was relatively quiet this week, with Crocodile Gold (TSX:CRK) and Newmarket Gold Inc. (TSX-V:NGN) agreeing to merge to form a new mid-tier gold producer being the largest of note. Crocodile and Newmarket shareholders will own 80% and 12% stakes in NewCo respectively (the remaining 8% will be sold in a corresponding private placement). Iron ore continued its rise, and gold had a fantastic week, ending the period well above the $1,200 level.
Although deal-making dropped off a bit this week, the Index’s solid performance over the previous three weeks, mixed with gold and iron ore prices, is a positive way to head into the generally quieter summer months.