Oreninc Index Update: November 10, 2011

The Oreninc Index jumped to just below 100 this week. The push came mainly from a sharp increase in the number of opened deals, including a large number of smaller deals in a variety of sectors beyond Gold and Oil & Gas. The five-week moving average is also up sharply this week.

·         Total number of opened deals rose to 51, a three-week high.

·         Opened brokered deals climbed to 12.

·         Average brokered deal size fell from $12.8 million to $10.5 million.

·         Bought deals announced moved up to six; average deal size stumbled to $13.5 million.

·         Averaged opened deal size fell to $3.7 million, a five-week low.

Confusion in global markets has caused an increase in overall market volatility, including the resource financing market. The Oreninc Index continues to jump around but remains high compared to Q3. We expect it to remain on an upward trend, barring any major macro shakeups that the market has not yet accounted for.  The markets remain cloudy, but the sun is certainly thinking about shining through.

This week’s major private placement openings included:

·         Trelawney Mining and Exploration Inc. (TSX-V:TRR) opened a $25 million private placement underwritten by a syndicate led by RBC Capital Markets on a bought deal basis. The deal is expected to close on or about November 28, 2011.

·         Aurcana Corporation (TSX-V:AUN) opened a $25 million private placement underwritten by a syndicate led by RBC Capital Markets on a best efforts basis. Each unit includes a 1/2 warrant that expires in  months.

·         Border Petroleum Corp. (TSX-V:BOR) opened a $20.02 million private placement underwritten by a syndicate led by Canaccord Genuity Corp. on a bought deal basis. The deal is expected to close on or about November 30, 2011.

·         Guide Exploration Ltd. (TSX:GO) opened a $20 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 November 24, 2011.

Major private placement closings:

·         Victoria Gold Corp. (TSX-V:VIT) closed a $30.07 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.

·         Trevali Resources Corp. (TSX:TV) closed a $30.07 million private placement underwritten by a syndicate led by Raymond James on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

·         Great Western Minerals Group (TSX-V:GWG) closed a $17.16 million private placement underwritten by a syndicate led by Byron Capital on a best efforts basis.

·         Probe Mines Ltd. (TSX-V:PRB) closed a $15.19 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.