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ORENINC INDEX up as bought deals and brokered action high

ORENINC INDEX - Monday, September 14th 2020

North America’s leading junior mining finance data provider



Last Week: 79.69
This Week: 95.43

The Oreninc Index increased in the week ending September 11th, 2020 to 95.43 from 79.69 a week ago as bought deals and brokered activity continued.

The COVID-19 virus global death toll has topped 920,000 with almost 29 million cases reported worldwide. 

Market volatility continues as tech stocks, which have driven general stock market highs, plunged, giving the Nasdaq100 a 4.8% daily fall.

The US Labor Department said 884,000 people filed for first-time jobless claims, an increase from the previous week, suggesting the economy is struggling to recover from COVID-19 pandemic impacts. The four-week moving average for new claims was 970,750, a 21,750 fall from the prior week. Continuing jobless claims rose to 13.4 million.

The European Central Bank said interest rates will remain unchanged at 0.00%, 0.25% and -0.50% respectively and maintained emergency stimulus measures to help the economy recover from the COVID-19 pandemic impacts.

In Europe, the UK and European Union look increasingly unlikely to reach a deal to govern their new relationship in 2021 and beyond following the UK’s withdrawal from the bloque. With neither side apparently willing to budge on what they hold to be fundamental principles, the UK government is moving to renege on legal-binding interim commitments it made regarding Northern Ireland,

On to the money: the aggregate financings announced increased to $166.9 million, a three-week high, which included ten brokered financings for $166.9 million, a three-week high, and two bought deal financings for $105.2 million, a three-week high. The average offer size increased to $4.6 million, a three-week high, while the number of financings fell to 36.

Volatility for the Gold spot price continued with another volatile week as it closed the week up at $1,940/oz from $1,933/oz a week ago. The yellow metal is up 27.9 so far this year. The US dollar index continued to strengthen as it closed up at 93.33 from 92.71 a week ago. The VanEck managed GDXJ continued to slip as it closed down at $58.16 from $58.34 a week ago. The index is now up 37.62% so far this year. The US Global Go Gold ETF  closed up a cent at $23.57 from $23.56 a week ago. It is up 34.23% so far this year. The HUI Arca Gold BUGS Index also closed up at 341.38 from 339.74 last week. The SPDR GLD ETF inventory continued to pare back, closing the week down at 1,248 tonnes or 40.12 million ounces from 1,250.04 tonnes last week.

In other commodities, Silver continued to see big swings as it closed the week down at $26.73/oz from $26.91/oz a week ago. Copper continued to hold above the US$3/lb closing the week down at $3.03/lb from $3.06/lb a week ago. Oil continued to slide as WTI closed down at $37.33 a barrel from $39.77 a barrel a week ago.

The Dow Jones Industrial Average closed down at 27,665 from 28,133 a week ago. Canada’s S&P/TSX Composite Index closed up a smidge at 16,222 from 16,218 the previous week. The S&P/TSX Venture Composite Index closed down a touch at 733.37 from 733.69 last week.

Summary

  • Number of financings decreased to 36.
  • Ten brokered financings were announced this week for $120.9 million, a three-week high.
  • Two bought-deal financings were announced this week for $105.2 million, a three-week high.
  • Total dollars increased to $166.9 million, a three-week high.
  • Average offer increased to $4.6 million, a three-week high.

 

Financing Highlights

First Majestic Silver (TSX:FR) opened a bought deal private placement to raise $78 million.

  • 5 million shares @ $15.60.
  • Sole investor will be Eric Sprott resulting in him holding about 2.3% of the company’s shares.
  • Underwritten by Cormark Securities.
  • Proceeds to be used to develop and/or improve the company's existing mines.

Integra Resources (TSXV:ITR) opened a bought deal basis private placement to raise $20 million.

  • Syndicate of underwriters led by Raymond James.
  • 5.9 million shares @ US$3.40.
  • Coeur Mining indicated interest in participating to maintain its 4.8% stake in Integra.
  • Proceeds to be used to fund exploration and pre-feasibility study expenditures at the DeLamar gold project in Idaho. UDA.
  • Offering is expected to close on or about September 14th.

Major Financing Openings

  • First Majestic Silver (TSX:FR) opened a $78 million offering underwritten by a syndicate led by Cormark Securities on a bought deal basis. 
  • Integra Resources (CSE:ITR) opened a $27.2 million offering underwritten by a syndicate led by Raymond James Ltd.
  • Bmex Gold (TSXV:BMEX) opened a $9.55 million offering underwritten by a syndicate led by StephensAvenue Securities on a best efforts basis. Each unit includes half a warrant that expires in 18 months. 
  • Titan Mining (TSX:TI) opened a $8 million offering on a best efforts basis. Each unit includes half a warrant that expires in three years. 

Major Financing Closings

  • McEwen Mining (TSX:MUX) closed a $13.7 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada on a bought deal basis.
  • Amex Exploration (TSXV:AMX) closed a $11.7 million offering underwritten by a syndicate led by PI Financial on a bought deal basis
  • Sable Resources (TSX:SAE) closed a $9.9 million offering underwritten by a syndicate led by Sprott Capital Partners on a best efforts basis. Each unit included half a warrant that expires in three years.

Novo Resources (TSXV:NVO) closed a $4.72 million offering on a best efforts basis.

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