Tweet

 

Volatility has been a key trait of the Oreninc Canadian Resource Financing Index since its inception, and the last few weeks have been no exception. While the index trended downward this week, it is at its highest point since July, excluding last week. The increases include the highest amount of total money raised since July, excluding last week. The downward pressure did not come from a specific area but instead from the continuation of an overall soft market.

• Total number of opened deals fell to 27, down from last week but still above the eight-week average of 26.
• Opened brokered deals fell to five, a one-month low.
• Average brokered deal size fell to $18.3 million but remains above the three-month average of $11 million.
• One bought deal opened, a sharp fall from last week’s six.
• Averaged opened deal size fell to $6.5 million but remains above the three-month average of $5 million.

This week we saw an old trend crop up again; 70% of opened deals occurred in either Oil & Gas or in Gold. Even though the index slipped from last week, the overall trend shows a market ready to improve.  The average amount of broker participation in total dollars raised over the last four weeks is 68%, the highest level since early May. Financings are still coming in at a slow pace, but the market is looks more stable and brokers have started to move.

This week’s major private placement openings included:

• Romarco Minerals Inc. (TSX:R) opened an $80.5 million private placement underwritten by a syndicate led by National Bank Financial on a bought deal basis. The deal is expected to close on or about October 19, 2011.
• Paramount Resources Ltd. (TSX:POU) opened a $52.65 million private placement underwritten by a syndicate led by BMO Capital on a best efforts basis. The deal is expected to close on or about October 20, 2011.
• Castle Resources Inc. (TSX-V:CRI) opened a $6 million private placement underwritten by a syndicate led by Scotia Capital on a best efforts basis. 
• Compass Gold Corp. (TSX-V:CVB) opened a $3.6 million private placement underwritten by a syndicate led by Delano Capital on a best efforts basis.  Each unit includes 1 warrant that expires in 18 months.
• Major private placement closings:
• Paladin Energy Ltd. (TSX:PDN) closed a $69.2 million private placement underwritten by a syndicate led by RBC Capital Markets on a best efforts basis. 
• Luna Gold Corp. (TSX-V:LGC) closed a $27 million private placement underwritten by a syndicate led by National Bank Financial on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
• Queenston Mining Inc. (TSX:QMI) closed a $25 million private placement underwritten by a syndicate led by Primary Capital on a best efforts basis. 
• American Bonanza Gold Corp. (TSX:BZA) closed a $6.1 million private placement underwritten by a syndicate led by National Bank Financial on a bought deal basis. 

Original Link: http://oreninc.com/orenthink/20110929-oreninc-index-update