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The Oreninc Canadian Resource Financing Index increased from last week, which is not saying much considering last week saw YTD-low numbers all around. The total number of deals opened climbed up and is now more in line with the last month and a half. Banks have once again disappeared, though instead of sitting on the sidelines, they’re sitting in offices with the phones unplugged and the door locked.  This week also saw a drop in spot gold prices, which is a first in a while.

• Total number of opened deals climbed to 12, a high for August.
• Opened brokered deals fell to two, a YTD low.
• No bought deals were opened for the second time this year, last week being the first.
• Averaged opened deal size climbed to $3 million, up from last week but less than half the YTD average.

If not for last week, this week’s index would have been the clear YTD low. The time of uncertainty is continuing on. The meeting at Jackson Hole will likely have delayed effects over the next few weeks no matter what is announced. While suffering a slight stumble this week, gold will maintain its prominent position and continue to dominate the financing space. It seems unlikely that there will be a substantial shift in the index next week, but a large deal or a little more broker support could cause some upward pressure and increased confidence in the markets.

This week’s major private placement openings included:

• Explor Resources Inc. (TSX-V:EXS) opened a $10 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
• Evolving Gold (TSX:EVG) opened a $5.76 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.
• Freegold Ventures Limited (TSX:FVL) opened a $3.97 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.
• RedWater Energy Corp. (TSX-V:RED) opened a $3.6 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.

Major private placement closings:

• Pinecrest Energy (TSX-V:PRY) closed a $60 million private placement on a bought deal basis. Canaccord led the syndicate of underwriters.
• Noventa Limited (TSX:NTA) closed a $30.36 million private placement on a best efforts basis.     
• Argentex Mining Corporation (TSX-V:ATX) closed a $10.01 million private placement underwritten by GMP Securities on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 24 months.
• Northern Freegold Resources Ltd. (TSX-V:NFR) closed an $8.38 million private placement.

Original Link: http://oreninc.com/orenthink/20110825-oreninc-index-update