Deal Volume Dips for Canadian Miners

Benjamin Cox |

Oreninc Index Falls to Reality

The Oreninc Index fell back down to reality for the week ending May 21, 2015. Total dollars announced fell to $104.6m, a two-week low. Four brokered financings were announced for $76.4m, a three-week low; three bought-deal financings were announced for $61.4m, a two-week low.

Deal-making was slow for the week, with the most notable news being the commencement of trading of South32 Limited (ASX:S32), BHP Billiton Ltd.’s (BHP) recently spun-out mining producer. Commodities had a down week with gold falling sharply, ending the week just above $1,200 an ounce, and iron ore falling after a couple of good straight weeks.

While it is disappointing that the Index’s performance went down and commodity prices had such a rough week, the five-week average increased to its highest level in 31 weeks. Given the state of the industry, that is as encouraging sign as we could hope for heading into the summer months.

Index_Image_5_21_15_01.png

 



Summary:

  • Number of financings dropped to 32, a two-week low.
  • Four brokered financings were announced for $76.4m, a three-week low.
  • Three bought deals were announced for $61.4m, a two-week low.
  • Total dollars fell to $104.6m, a two-week low.
  • Average offer size decreased to $3.3m, a two-week low.  

Major Financing Openings:

  • Storm Resources Ltd. (SRX:CA) opened a $36.4 million offering underwritten by a syndicate led by FirstEnergy Capital Corp. on a bought deal basis. The deal is expected to close on or about June 10, 2015.
  • Trevali Mining Corp. ($TV:CA) opened a $20 million offering underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis. The deal is expected to close on or about June 11, 2015.
  • Otterburn Resources Corp. (OBN:CA) opened a $15 million offering underwritten by a syndicate led by TD Securities Inc. on a best efforts basis.
  • Pretium Resources Inc. (PVG:CA) opened a $6 million offering on a best efforts basis.  

Major Financing Closings:

  • Gold Standard Ventures Corp. ($GSV:CA) closed a $16.25 million offering on a best efforts basis.
  • Belo Sun Mining Corp. ($BSX:CA) closed a $15 million offering on a strategic deal basis.    
  • Yangarra Resources Ltd. (YGR:CA) closed a $20 million offering underwritten by a syndicate led by AltaCorp Capital on a bought deal basis.
  • Marlin Gold Mining Ltd. ($MLN:CA) closed an $8.75 million offering on a strategic deal basis.

Author: Paul Ostrow

Oreninc also publishes the Oreninc Deal Log, a daily list of all financing activity in the TSX, TSX-V and CSE resource sectors. Visit http://oreninc.com to see which companies and sectors to watch. Oreninc also writes custom reports for companies on effective capital raising strategies to help companies maintain long-term shareholder value.

Disclaimer: The views presented in Oreninc's blog reflect the opinions of the Oreninc Team only. We use the publicly available data we collect for the ODL to discuss greater market and financing issues. See Terms.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer

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