Oreninc publishes the Oreninc Deal Log, the central source for resource financing activity on the TSX and TSX-V. Oreninc offers a free daily email subscription and a filterable web interface. Oreninc writes about market issues on its blog Orenthink and publishes the Canadian Resource Financing Index to monitor the strength of the financing market.
Oreninc Index Update: September 15, 2011
The Oreninc Canadian Resource Financing Index slipped to a September low after climbing for three consecutive weeks. The amount of broker participation is down from last week’s spike but still sits well above the six-week moving average. Brokers have been participating in smaller deals, which may signal a greater willingness to get involved in more than just the most secure deals. Total money announced stayed flat over the week with a slight climb in total announced deals.
- Total number of opened deals moved up to 26, mostly in line with the last two months.
- Opened brokered deals increased by one to seven; brokered money accounted for 56% of all opened deals.
- One bought deal opened, the same as last week and well below the YTD average of 5.5.
- Averaged opened deal size fell to $2.5 million, down from last week and below the four-week average of $3.3 million.
This week the market continued to lay fairly low in the doldrums. We’re still waiting to see full market confidence and readiness to enter into the standard fall money-raising season. Winter is coming, so projects will be winding down and focus will shift to how to finance next year’s projects.
This week’s major private placement openings included:
- Queenston Mining Inc. (TSX:QMI) opened a $22.5 million private placement underwritten by a syndicate led by Primary Capital on a best efforts basis. The deal is expected to close on or about September 27, 2011.
- Cobalt Coal Ltd. (TSX-V:CCF) opened a $6 million private placement underwritten by a syndicate led by Mackie Research Capital on a best efforts basis.
- Huakan International Mining Inc. (TSX-V:HK) opened a $5 million private placement on a best efforts basis.
- Vanoil Energy Ltd. (TSX-V:VEL) opened a $5 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.
Major private placement closings:
- LNG Energy Ltd. (TSX-V:LNG) closed a $20.12 million private placement underwritten by a syndicate led by Paradigm Capital on a best efforts basis.
- Sunset Cove Mining Inc. (TSX-V:SSM) closed a $3.56 million private placement underwritten by a syndicate led by Kallpa Securities on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.
- Integra Gold Corp. (TSX-V:ICG) closed a $2.73 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
- Century Mining Corp. (TSX-V:CMM) closed a $5.16 million private placement on a best efforts basis.
Original Link: http://oreninc.com/orenthink/20110915-oreninc-index-update
Register here to be notified of future Oreninc articles.