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The Oreninc Canadian Resource Financing Index climbed to a four-week high this week. The shift is driven by the return of brokers, which is surprising; normally we do not see much activity following a long weekend, and considering brokers have been nonexistent for three weeks, the return may signal the wrapping up of the summer season.

• Total number of opened deals fell to 20, down from the previous two weeks, but not miserable considering the four-trading-days week.
• Opened brokered deals increased to six; brokered money accounted for 70% of all opened deals, a five-week high.
• One bought deal opened, an increase over the last four weeks when none were announced.
• Averaged opened deal size fell to $3.1 million, down from last week and below the four-week average of $3.3 million.

A $100 million non-brokered private placement bolstered the index last week. This week the market did not see any deal quite as large, but strong broker participation brought the index to a six-week high. In addition, for the first time in weeks a diverse range of sectors was represented.  Gold financings still accounted for 45% of total money announced, but it is well below the averages seen over the last few months. Over the next six to eight weeks, the seasonal trends should gradually push more activity into the markets.

This week’s major private placement openings included:

• Blue Gold Mining Inc. (TSX-V:BGX) opened a $20 million private placement underwritten by a syndicate led by Cormark Securities on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months, and the deal is expected to close on or about October 6, 2011.
• Charlotte Resources Ltd. (CNSX:CHT) opened an $11.2 million private placement underwritten by a syndicate led by Canaccord on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
• American Bonanza Gold Corp. (TSX:BZA) opened a $6.1 million private placement underwritten by a syndicate led by National Bank Financial on a bought deal basis.
• Red Rock Energy Inc. (TSX-V:RRK) opened a $5.6 million private placement underwritten by a syndicate led by Wolverton Securities on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.

Major private placement closings:

• Wind River Energy Corp. (TSX-V:WVR) closed a $3.3 million private placement on a best efforts basis.  Each unit includes 1 warrant that expires in 12 months.
• Amato Exploration Ltd. (TSX-V:AMT) closed a $1.25 million private placement on a best efforts basis.
• Bayshore Petroleum Corp. (TSX-V:BSH) closed a $1.09 million private placement on a bought deal basis.  Each unit includes 1 warrant that expires in 36 months.
• American Vanadium Corp. (TSX-V:AVC) closed a $1 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 18 months.

Original Link: http://oreninc.com/orenthink/20110908-oreninc-index-update