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Oreninc Index Update: January 12, 2017

 

Oreninc Index pops as gold passes $1,200 USD

The Oreninc Index rebounded strongly in the week ending January 13, 2017 with total dollars announced jumping to $285.6m. This included seven brokered financings for a total of $192.5m, a 28-week high, and one bought-deal financing for $33.1m, a 13-week high. Perhaps more important, the average offer size increased to $11.9m, a 245-week high.

Although the total number of financings fell to 24, the increase in total funds and average offer size reflects the fact that Gold moved above the 1,200 USD mark again, continuing the rally that began in late December 2016. The industry’s leading benchmark index, the van Eck managed GDXJ continued its upward trend and is up 16.2% so far in 2017.

With Donald Trump a week away from being sworn in as US President, the honeymoon period of being president elect is over, which means it is time to turn his blustering hyperbole into actual deeds and management of the largest economy on the planet. Reflecting this fact, the ten-year Treasury Inflation Protected Securities (TIPS) yield continues to come down and is essentially back to its pre-election level, with some observers believing that gold still has room to run if TIPS continues its downward trend to return to its general 3Q16 level.

Financial news highlight

Of particular note this week, Leagold Mining (TSX-V: LMC-H) announced a $71m raise and as it struck a $350m deal with Goldcorp (TSX: G) to buy the Los Filos gold mine in Mexico, which will be its first mine. $279m will be paid in cash and $71m in stock that will see Goldcorp own 30% of Leagold upon completion. Leagold engaged UBS Investment Bank to arrange the debt and BMO Capital Markets to arrange the equity. Leagold—with Frank Guistra as non-executive chairman—aims to become a new mid-tier gold producer with a focus on Latin America. Los Filos produced 272,900 oz Au in 2015 and 194,000 oz Au at an AISC/oz of $854 through the first nine months of 2016 to September 30th.

Summary:

  • Number of financings dropped to 24
  • Seven brokered financings were announced for $192.5m, a 28-week high.
  • One bought-deal financing was announced for $33.1m, a 13-week high.
  • Total dollars increased to $285.6m, a 24-week high.
  • Average offer size expanded to $11.9m, a 245-week high.

Major Financing Openings:

  • Leagold Mining Corp (TSX-V:LMC.H) opened a $71m offering underwritten by a syndicate led by BMO Capital Markets on a strategic deal basis.
  • Auryn Resources Inc. (TSX-V:AUG) opened a $58.02m offering on a strategic deal basis. The deal is expected to close on or about January 31, 2017.
  • Bluestone Resources Inc. (TSX-V:BSR) opened a $39.36m offering on a best efforts basis.   
  • Itafos (TSX-V:IFOS) opened a $35m offering underwritten by a syndicate led by Raymond James Ltd. on a best efforts basis.    

Major Financing Closings:

  • Darnley Bay Resources (TSX-V:DBL) closed a $9.95m offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
  • Kaizen Discovery Inc. (TSX-V:KZD) closed a $7.27m offering on a best efforts basis. The deal was expected to close on or about November 18, 2016.
  • Golden Reign Resources Ltd. (TSX-V:GRR) closed a $4.38m offering on a best efforts basis. The deal was expected to close on or about December 30, 2016.
  • Zenith Energy Ltd. (TSX-V:ZEE) closed a $3.75m offering underwritten by a syndicate led by Optiva Securities Ltd. on a best efforts basis. 

Oreninc sponsor news

AuRico Metals (TSX: AMI) C$1.18, Mkt Cap C$176.7m – updated Kemess FS

  • AuRico upgraded the resources at its Kemess East orebody in north-central British Columbia of 1.7moz Au & 1bn lb Cu with indicated resources of 113.1mt @ 0.38% Cu & 0.46 g/t Au and inferred resources of 63.8mt @ 0.34% Cu & 0.31 g/t Au
  • Resources in the high-grade core increased 250% compared to the March 2016 resource announcement and it remains open to the north and to the south as does the overall deposit.
  • Kemess East is about 1km east of the Kemess underground deposit and 6.5 km north of the Kemess South facilities
  • Kemess South produced 3moz Au between 1998-2011 and has C$1bn of infrastructure on care and maintenance.
  • AuRico commenced the final 30-day public comment period for an environmental assessment report for its Kemess underground project. The company expects a final decision for the issuance of an environmental assessment certificate by the end of 1Q17.
  • The Kemess underground feasibility study deposit contemplates the development of a panel-caving operation with a 12-year mine life with an IRR of 12.6%, after-tax NPV (5%) of C$289m with life-of-mine production of 1.4moz Au, 573mlb Cu & 4.5moz Ag at an average annual rate of 129Koz Au & 52mlbs Cu over first five years with a C$450m capex.

Conclusion: With a great deal of infrastructure already in place and the Kemess underground environmental permitting processing advancing, the increase in the Kemess East resource adds to the future mining potential.

 

 

 

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Paul Harris joins Oreninc

Vancouver, B.C. - Oreninc.com, North America’s leading provider of relevant financing information in the junior commodities space, is pleased to announce the addition of Paul Harris as the new Staff Writer and Editor to the team.

 

“In line with our strategy to develop the Oreninc.com platform into a buzzing hub in the junior commodity space, the addition of Paul Harris marks an important milestone,” comments CEO Kai Hoffmann. “Paul has a long and excellent track record in the industry. He brings a wealth of knowledge and expertise to the team that he has buildup over his 16 years in the space we are operating in.”

 

“Paul will not only add his valuable market insights to our weekly mailing of the Oreninc Index. He will further support us with the preparation of high-quality editorial content for the Oreninc.com website itself,” states Hoffmann.

 

“I am thrilled to be part of the Oreninc team and work with Kai to generate more quality information and insight from the company’s finance-tracking tools to cement the company’s place as one of the leading financial information sources for the natural resource sector,” remarks Harris.

 

If you are not yet a subscriber of our daily, weekly and Oreninc Index newsletter, you can subscribe for free at www.oreninc.com/subscribe.

 

About Oreninc.com

 

Oreninc.com is North America’s leading provider of relevant financing information in the junior commodities space. Since 2011, the company has been keeping track of financings in the junior mining as well as oil and gas space. Logging all relevant deal and company information into the Oreninc Deal Log, Oreninc quickly became the go-to website in the mining financing space for investors, analysts, fund managers and company executives alike.

 

The Oreninc Deal Log keeps track of over 1,400 companies, bringing transparency to an otherwise impenetrable jungle of information. The goal is to increase the visibility of transactions and to show financings activity in a digestible format.

 

Oreninc and Oreninc.com are brands of

 

Soar Financial Canada Corp.

410 – 325 Howe Street

Vancouver, BC V6C 1Z7

E: This email address is being protected from spambots. You need JavaScript enabled to view it. | www.oreninc.com

For further information and sponsorship enquiries please contact:

 

Kai Hoffmann, CEO

This email address is being protected from spambots. You need JavaScript enabled to view it. | T: +49 179 509 2801

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Oreninc Index Update: January 5, 2016

 

Oreninc Index Drops During Light Holiday Trading 

The Oreninc Index slipped to a five-week low for the post holiday weeks ending January 5, 2017. Total dollars fell to $60.0m for the combined two weeks. Two brokered financings were announced for a total of $2.1m, a four-week high; No bought-deal financing was announced, a five-week low. 

Being a historically slow couple of weeks with less trading days, many companies were making sure to be closing their respective deals before year-end. In the news, Gold and Silver started the new year off with a small rally, with Gold trading around the 1,180 USD mark and Silver up to 16.50 USD per ounce. The industry’s leading benchmark index, the van Eck managed GDXJ also rallied and is up a whopping 25%.

Kicking off the second week of the year, investors are returning to their desks from much needed vacations. Many of them will have to play catchup with the market. It will be exciting to see what 2017 has in store for the industry.

Summary: (week of Jan. 5)

  • Number of financings fell to 31.
  • Two brokered financings were announced for $2.1m, a four-week high.
  • No bought-deal financing was announced, a three-week low.
  • Total dollars rose to $16.2m, a 51-week low.
  • Average offer size fell to $0.5m, a 104-week low.

Major Financing Openings:

  • Largo Resources Ltd. (TSX-V:LGO) opened a $23.58 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.
  • Kirkland Lake Gold Ltd. (TSX:KL) opened a $7 million offering on a best efforts basis.    
  • BE Resources Inc. (TSX-V:BER) opened a $2.7 million offering on a best efforts basis.    
  • Anglo-Bomarc Mines Ltd. (TSX-V:ANB) opened a $2 million offering on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.

Major Financing Closings:

  • Imperial Metals Corporation (TSX:III) closed a $65 million offering on a best efforts basis. The deal closed on December 30th, 2016.
  • International Tower Hill Mines Ltd. (TSX:ITH) closed a $29.85 million offering on a best efforts basis on December 28th, 2016.
  • Kirkland Lake Gold Ltd. (TSX:KL) closed a $7 million offering on a best efforts basis.
  • Jericho Oil Corp. (TSX-V:JCO) closed a $5.39 million offering on a best efforts basis.

 

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Oreninc Index Update: December 22, 2016

Oreninc Index Rises to Four-Week High in Week before Holiday Break 

The Oreninc Index rose to a four-week high for the week ending December 22, 2016. Total dollars rose to $123.7m, a four-week high. One brokered financing was announced for $0.6m, a 41-week low; No bought-deal financing was announced, a three-week low.

The biggest deal-making news of the week came from Vale (NYSE:VALE) and their announcement that they had sold the lion-share of their fertilizer business to Mosaic Co. (NYSE:MOS) for $2.5bn, in a half stock, half cash deal. Gold price mostly stayed level, with it still remaining significantly lower than it’s YTD-high over the summer. On the other end of the spectrum, both copper and iron ore were down again, as they have been for most of the month, but are still faring much better than they were prior to the election of Donald J. Trump in the United States.

As the year comes to an end, it is good to see some deal-making and money being raised in the market. Let’s see how the industry moves into the new year, and how the sudden shift in fortunes for different metals impacts things in 2017. 

Summary:

  • Number of financings grew to 45, a four-week high.
  • One brokered financing was announced for $0.6m, a 41-week low.
  • No bought-deal financing was announced, a three-week low.
  • Total dollars rose to $123.7m, a four-week high.
  • Average offer size fell to $2.7m, a two-week low. 

Major Financing Openings:

  • Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $39.96 million offering on a best efforts basis.
  • International Tower Hill Mines Ltd. (TSX:ITH) opened a $29.3 million offering on a best efforts basis.
  • PPX Mining Corp. (TSX-V:PPX) opened a $7.5 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.
  • Integra Gold Corp. (TSX-V:ICG) opened a $7 million offering on a best efforts basis. The deal is expected to close on or about December 20, 2016.

Major Financing Closings:

  • Lumina Gold Corp. (TSX-V:LUM) closed a $20 million offering on a best efforts basis.    
  • Harte Gold Corp. (TSX-V:HRT) closed a $25 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a bought deal basis. 
  • G4G Capital Corp. (TSX-V:GGC) closed a $18 million offering on a strategic deal basis.    The deal is expected to close on or about December 13, 2016.
  • Osisko Mining Inc. (TSX:OSK) closed a $13.96 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a best efforts basis. The deal is expected to close on or about December 13, 2016.

 

 

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Oreninc Index Update: December 15, 2016

Oreninc Index Remains in Holiday Slump 

The Oreninc Index stayed mostly level for the week ending December 15, 2016. Total dollars grew to $123.6m, a three-week high. One brokered financing was announced for $2.5m, a 31-week low; One bought-deal financing was announced for $2.5m, a two-week low.

Deal-making was light on the week, with Glencore (LON:GLEN) purchasing some of zinc producer Nyrstar’s (EBR:NYR) assets for $26m being the biggest news of the week. Gold prices were down on the week on news that the US Federal Reserve is raising interest rates, with iron ore continuing its positive trend.

While the overall index performance is down for the month, the fact that we are in a place where these positive of numbers are viewed as a poor performance means that 2016 has been a positive year in the Canadian natural resource financing market. 

Summary:

  • Number of financings fell to 32, a two-week low.
  • One brokered financing was announced for $2.5m, a 31-week low.
  • One bought-deal financing was announced for $2.5m, a two-week low.
  • Total dollars grew to $123.6m, a three-week high.
  • Average offer size increased to $3.9m, a six-week high. 

Major Financing Openings:

  • Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $39.96 million offering on a best efforts basis.
  • International Tower Hill Mines Ltd. (TSX:ITH) opened a $29.3 million offering on a best efforts basis.
  • PPX Mining Corp. (TSX-V:PPX) opened a $7.5 million offering on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.
  • Integra Gold Corp. (TSX-V:ICG) opened a $7 million offering on a best efforts basis. The deal is expected to close on or about December 20, 2016.

Major Financing Closings:

  • Lumina Gold Corp. (TSX-V:LUM) closed a $20 million offering on a best efforts basis.    
  • Harte Gold Corp. (TSX-V:HRT) closed a $25 million offering underwritten by a syndicate led by Cantor Fitzgerald Canada Corp. on a bought deal basis. 
  • G4G Capital Corp. (TSX-V:GGC) closed a $18 million offering on a strategic deal basis.    The deal is expected to close on or about December 13, 2016.
  • Osisko Mining Inc. (TSX:OSK) closed a $13.96 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a best efforts basis. The deal is expected to close on or about December 13, 2016.

 

 

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