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The index continued to relax on the back of global economic fears.  This week’s index shows a distinct change from past weeks because of the Oreninc team’s decision to shift the index away from majors and focus solely on resource juniors. In the future, the index will only take into account deals including companies with a sub-$1.5 billion market cap and companies looking to raise less than $100 million. This week Avion Gold Corp.’s (TSX-V:AVR) bought deal saved this week from becoming a clear YTD low.

• Total number of opened deals rose to 22, up from last week’s YTD low.
• Opened brokered deals fell to three, a YTD low.
• Opened bought deals stayed constant at three.
• Average opened deal size climbed to $4.4 million.

·         Percentage of money raised by brokers moved to within a half-percent of the YTD average of 67%.

The index remained steady likely due to continuing fears relating to the U.S. credit downgrade and growing concerns over sovereign debt crises in Europe. The only major support came after close on Thursday with Avion Gold Corp.’s bought deal opening. With gold hovering around $1,800 per oz., flirting daily with record-highs, it is no surprise that gold and precious metals continue to dominate the financing space. We expect another flat week and not much gain in the next few weeks as global markets attempt to re-align.

This week’s major private placement openings included:

·         Avion Gold Corp. (TSX:AVR) opened a $50.09 million private placement on a bought deal basis.  The syndicate of underwriters is led by National Bank Financial.   

·         Base Oil & Gas Ltd. (TSX-V:BOG) opened a $15 million private placement on a best efforts basis.  The syndicate of underwriters is led by Dundee Securities, and the deal is expected to close on or about August 31, 2011.

·         Strathmore Minerals Corp. (TSX:STM) opened an $8 million private placement on a bought deal basis.     

·         Stealth Energy Inc. (CNSX:SLH) opened a $6 million private placement on a best efforts basis.   Each unit includes a 1/2 warrant that expires in 12 months.

Major private placement closings:

·         Orvana Minerals Corp. (TSX:ORV) closed a $17 million private placement on a best efforts basis.  The syndicate of underwriters was led by Raymond James.

·         Northern Freegold Resources Ltd. (TSX-V:NFR) closed an $8.18 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.

·         Pacific Wildcat Resources Corp. (TSX-V:PAW) closed a $5.57 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.

·         Rock Tech Lithium Inc. (TSX-V:RCK) closed a $4.47 million private placement on a best efforts basis. The syndicate of underwriters was led by Mackie Research. Each unit includes a 1/2 warrant that expires in 24 months.

Original Link: http://oreninc.com/orenthink/20110811-oreninc-index-update