The Oreninc Index went up slightly for the week ending May 3, 2012.  Total number of deals opened declined for the second week in a row, but a major push came from the announcement of six offerings greater than $10 million.

• Total number of opened deals dropped to 21, a six-week low.
• Four brokered deals announced; average brokered deal size more than tripled to $34 million.
• One bought deal announced for $70 million.
• Total dollars opened increased substantially to $192 million; average deal size jumped to $9.1 million.

This week’s major private placement openings included:

• Pretium Resources Inc. (TSX:PVG) opened a $70 million private placement underwritten by a syndicate led by Scotia Capital Inc. on a bought deal basis.
• Canada Lithium Corp. (TSX:CLQ) opened a $30 million private placement underwritten by a syndicate led by Scotia Capital on a best efforts basis. The deal is expected to close on or about May 21, 2012.
• GoGold Resources Inc. (TSX-V:GGD) opened a $30 million private placement underwritten by a syndicate led by BMO Capital Markets on a best efforts basis. The deal is expected to close on or about May 10, 2012.
• T.M.T. Resources Inc. (TSX-V:TMT.H) opened an $18.6 million private placement on a best efforts basis.    

Major private placement closings:

• North American Palladium Ltd.  (TSX:PDL) closed a $35 million private placement underwritten by a syndicate led by Scotia Capital Inc. on a best efforts basis.
• Colt Resources Corp. (TSX-V:GTP) closed an $8.7 million private placement underwritten by a syndicate led by TD Securities on a bought deal basis.
• Calibre Mining Corp. (TSX-V:CXB) closed a $5 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 12 months.
• Westbridge Energy Corporation (TSX-V:WEB) closed a $4 million private placement on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20120508-oreninc-index-update

The Oreninc Index fell to a three-week low for the week ending April 26.  Total opened deals fell significantly from the previous week, but average deal size remained mostly flat.  Broker involvement as a portion of money opened is up slightly from last week, but total brokered money raised decreased.

• Total number of opened deals dropped to 24, a five-week low.
• Four brokered deals announced; average brokered deal size dropped from $9.8 million to $9.0 million.
• One bought deal announced for $30 million.
• Total dollars opened halved from $149.6 million to $78 million; average deal size dropped to $3.3 million.

This week’s major private placement openings included:

• TAG Oil Ltd. (TSX:TAO) opened a $30 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis. The deal is expected to close on or about May 15, 2012.
• Sutter Gold Mining Inc. (TSX-V:SGM) opened a $15 million private placement on a best efforts basis.
• Noront Resources Ltd. (TSX-V:NOT) opened a $10 million private placement on a best efforts basis. The deal is expected to close on or about May 8, 2012.
• Skyline Gold Corporation (TSX-V:SK) opened a $6.1 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major private placement closings:

• Guyana Goldfields Inc. (TSX:GUY) closed a $31.7 million private placement on a best efforts basis.
• Aldridge Minerals Inc. (TSX-V:AGM) closed an $11.2 million private placement on a best efforts basis.
• Sintana Energy Inc. (TSX-V:SNN) closed an $11 million private placement underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.
• Alston Energy Inc. (TSX-V:ALO) closed a $2.3 million private placement on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20120430-oreninc-index-update

The Oreninc Index remained relatively unchanged during the week ending April 19.  Six bought deals were announced during the week, including several strategic partnership agreements.  It appears the summer slowdown is starting early this year, but a high level of broker participation suggests companies may still have time to raise money and investors may still find solid investment opportunities.

• Total number of opened deals increased to 40.
• Seven brokered deals were announced, but total brokered money raised and average brokered deal size decreased.
• Six bought deals were announced, the most since early March.
• Total money raised increased to $149.6 million, with the average deal size dropping slightly to $3.8 million.

This week’s major private placement openings included:

• Raging River Exploration Inc. (TSX-V:RRX) opened a $35 million private placement underwritten by a syndicate led by Peters & Co. on a bought deal basis. The deal is expected to close on or about May 8, 2012.
• South American Silver Corp. (TSX-V:SAC) opened a $16 million private placement on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about April 20, 2012.
• Petro Viking Energy Inc. (TSX-V:VIK) opened a $15 million private placement underwritten by a syndicate led by Jennings Capital on a best efforts basis.
• Petrolia Inc. (TSX-V:PEA) opened a $15 million private placement on a bought deal basis. Each unit includes a 1/2 warrant that expires in 36 months.

Major private placement closings:

• Birchcliff Energy Ltd. (TSX-V:BIR) closed a $110.1 million private placement, with a portion of the offering underwritten by a syndicate led by GMP Securities on a bought deal basis.
• Santacruz Silver Mining Ltd. (TSX-V:SCZ) closed a $20 million private placement underwritten by a syndicate led by Canaccord Capital on a best efforts basis.
• Tamarack Valley Energy Ltd. (TSX-V:TVE) closed a $16.5 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis.
• Flinders Resources Ltd. (TSX-V:FDR) closed a $15 million private placement underwritten by a syndicate led by Cormark Securities on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20120423-oreninc-index-update

The Oreninc Index rose for the week ending April 12.  While no bought deals were announced, broker participation increased. An interesting data point is only eight offerings closed, the fewest in a one-week period in 2012 so far. While not entirely surprising due to the state of the market since mid-March, the number is still very low.

• Total number of opened deals moved up to 30.
• Number of opened brokered deals remained at four; average brokered deal size increased from $5 million to $18 million.
• No bought deals were announced for the third time in four weeks.
• Total money raised increased to $119 million, with the average deal size increasing to $4 million.

This week’s major private placement openings included:

• North American Palladium Ltd.  (TSX:PDL) opened a $35 million private placement underwritten by a syndicate led by Scotia Capital on a best efforts basis.  The deal is expected to close on or about April 30, 2012.
• Pacific Wildcat Resources Corp. (TSX-V:PAW) opened a $25 million private placement underwritten by a syndicate led by GMP Securities on a best efforts basis.  Each unit includes 1 warrant that expires in 36 months.
• Guyana Goldfields Inc. (TSX:GUY) opened a $24.4 million private placement on a best efforts basis.  The deal is expected to close on or about April 24, 2012.
• Charlotte Resources Ltd. (CNSX:CHT) opened a $9 million private placement underwritten by a syndicate led by Canaccord Genuity on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.
• Major private placement closings:
• Iona Energy Inc. (TSX-V:INA) closed a $92 million private placement underwritten by a syndicate led by Casimir Capital on a best efforts basis.
• Lago Dourado Minerals Ltd. (TSX-V:LDM) closed a $10.1 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 18 months.
• Gale Force Petroleum Inc. (TSX-V:GFP) closed a $4.2 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 12 months.
• GeoMegA Resources (TSX-V:GMA) closed a $3.5 million private placement underwritten by a syndicate led by Industrial Alliance Securities on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20120418-oreninc-index-update

The Oreninc Index is up from last week, but it is not a big feat following a massive drop two weeks ago.  The initial drop occurred due to a low number of deal openings and total announced money, but it was then magnified by the disappearance of broker involvement.  This past week it struggled back up with relatively low overall numbers, but number of opened deals, total money announced, and broker involvement equally contributed to index trends.

·         Total number of opened deals stood at 26.

• Number of opened brokered deals increased to five, up from zero last week but substantially lower than the rest of March.
• Three bought deals were announced for a total of $88 million, with an average deal size of $29 million.
• Total money announced stood at $212 million, above the four-week average.
• This week’s major private placement openings included:
• Birchcliff Energy Ltd. (TSX-V:BIR) opened a $110.1 million private placement underwritten by a syndicate led by GMP Securities LP on a bought deal basis. The deal is expected to close on or about April 19, 2012.
• Paramount Gold and Silver Corp. (TSX-V:PZG) opened an $18.3 million private placement on a best efforts basis. The deal is expected to close on or about March 30, 2012.
• Tamarack Valley Energy Ltd. (TSX-V:TVE) opened a $16.5 million private placement on a bought deal basis. The deal is expected to close on or about April 17, 2012.
• Flinders Resources Ltd. (TSX-V:FDR) opened a $15 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

Major private placement closings:

• Verde Potash PLC (TSX-V:NPK) closed a $28.8 million private placement underwritten by a syndicate led by  GMP Securities on a bought deal basis.
• DeeThree Exploration Ltd. (TSX:DTX) closed a $17.3 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis.
• Storm Resources Ltd. (TSX-V:SRX) closed a $23.6 million private placement on a best efforts basis.
• Stornoway Diamond Corp. (TSX:SWY) closed a $15 million private placement underwritten by a syndicate led by Scotia Capital on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20120402-oreninc-index-update

The Oreninc Index is up slightly from last week.  It is also in a similar place as the same time last year.  In other news, Oreninc will be releasing new Pulse Reports next week, which will be available on Oreninc’s website (link: http://oreninc.com/services).

• Total number of opened deals increased slightly to 34.
• Number of opened brokered deals fell to 13 and made up 85% of total money announced.
• Five bought deals were announced for a total of $100 million with an average deal size of $7.5 million.
• Total money opened moved to $255 million, up from last week but still down from the late-February highs.

This week’s major private placement openings included:

• Octant Energy Corp. (TSX-V:RAN.H) opened a $65 million private placement underwritten by a syndicate led by RBC Capital Markets on a best efforts basis.    
• Great Basin Gold (TSX:GBG) opened a $50 million private placement underwritten by a syndicate led by RBC Capital Markets on a bought deal basis.  Each unit includes a 1/2 warrant that expires in 24 months. The deal is expected to close on or about March 30, 2012.
• Tourmaline Oil Corp. (TSX:TOU) opened a $40 million private placement underwritten by a syndicate led by Peters & Co. on a bought deal basis. The deal is expected to close on or about April 4, 2012.
• Renegade Petroleum Ltd. (TSX-V:RPL) opened a $30 million private placement underwritten by a syndicate led by GMP Securities LP on a bought deal basis. The deal is expected to close on or about March 30, 2012.
• Major private placement closings:
• Pinecrest Energy (TSX-V:PRY) closed a $60.1 million private placement underwritten by a syndicate led by Canaccord Genuity Corp on a bought deal basis.
• Lydian International Ltd. (TSX:LYD) closed a $40 million private placement underwritten by a syndicate led by GMP Securities on a bought deal basis.
• Cluff Gold (TSX:CFG) closed a $35.8 million private placement underwritten by a syndicate led by Collins Stewart Europe on a best efforts basis.
• TriOil Resources Ltd. (TSX-V:TOL) closed a $35.5 million private placement underwritten by a syndicate led by GMP Securities L.P. on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20120320-oreninc-index-update

The Oreninc Index is back after the team traveled to Toronto for a very successful PDAC, where Oreninc’s Managing Director Benjamin Cox spoke about 2012 financing projections.  The index is down from last week, but the five-week moving average is at its highest since last April. Financing season is in full force.

• Total number of opened deals dropped to 33.
• Number of opened brokered deals fell to 15 and made up 81% of total money announced.
• Nine bought deals were announced for a total of $161.8 million.
• Total money opened fell to $212 million, a three-week low.

This week’s major private placement openings included:

• Great Basin Gold (TSX:GBG) opened a $50 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 March 28, 2012.
• Extorre Gold Mines Limited (TSX:XG) opened a $25.1 million private placement underwritten by a syndicate led by Canaccord Genuity on a bought deal basis. The deal is expected to close on or about March 15, 2012.
• Sandspring Resources Ltd. (TSX-V:SSP) 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 March 30, 2012.
• Lachlan Star (TSX:LSA) opened a $17.6 million private placement underwritten by a syndicate led by Macquarie Capital Markets on a bought deal basis. The deal is expected to close on or about April 3, 2012.

Major private placement closings:

• Crescent Point Energy Corp. (TSX:CPG) closed a $605.9 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.
• Madalena Ventures Inc. (TSX-V:MVN) closed a $67.5 million private placement underwritten by a syndicate led by Casimir Capital on a bought deal basis.
• Spartan Oil Corp. (TSX:STO) closed a $57.5 million private placement underwritten by a syndicate led by Clarus Securities on a bought deal basis.
• Prodigy Gold Inc. (TSX-V:PDG) closed a $42.5 million private placement underwritten by a syndicate led by Casimir Capital on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20120313-oreninc-index-update

The Oreninc Index reached its highest level for the year to date for the second time in three weeks, backed by a year-to-date high in financings announced and significant broker involvement.

• Total number of opened deals popped up to 56, a year-to-date high.
• The number of opened brokered deals more than doubled to 27; brokered money made up over 90% of money announced.
• Bought deals doubled the previous year-to-date high with 12 openings.
• Total money opened nearly tripled from last week, with over $360 million announced.

This week’s major private placement openings included:

• Spartan Oil Corp. (TSX:STO) opened a $50 million private placement underwritten by a syndicate led by Clarus Securities on a bought deal basis.  The deal is expected to close on or about March 8, 2012.
• Lydian International Ltd. (TSX:LYD) opened a $40 million private placement underwritten by a syndicate led by GMP Securities on a bought deal basis.  The deal is expected to close on or about March 9, 2012.
• PMI Gold Corporation (TSX-V:PMV) opened a $35 million private placement underwritten by a syndicate led by Clarus Securities on a bought deal basis.  The deal is expected to close on or about March 16, 2012.
• Crocodile Gold Corp. (TSX:CRK) opened a $30 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis.  The deal is expected to close on or about March 15, 2012.

Major private placement closings:

• AltaGas Ltd. (TSX:ALA) closed a $403 million private placement underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.
• Americas Petrogas Inc. (TSX-V:BOE) closed a $60.1 million private placement underwritten by a syndicate led by TD Securities on a bought deal basis.
• Pretium Resources Inc. (TSX:PVG) closed a $23.1 million private placement underwritten by a syndicate led by Salman Partners on a bought deal basis.
• Kivalliq Energy Corporation (TSX-V:KIV) closed a $9.6 million private placement on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20120228-oreninc-index-update

The Oreninc Index moving average is continuing its upswing from a low point in mid-January.  This week one deal, which is not included in the index due to size but reflects strong overall market health, is Crescent Point Energy’s $525 million bought deal.

• Total number of opened deals fell slightly to 45 but remains above the 20-week average.
• The number of opened brokered deals dropped to 12 but is almost double the 10-week average.
• Bought deals decreased to one.
• Total money opened dropped from last week’s year-to-date high of $380 million to $130 million.

This week’s major private placement openings included:

• Crescent Point Energy Corp. (TSX:CPG) opened a $525 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.  The deal is expected to close on or about March 8, 2012.
• Madalena Ventures Inc. (TSX-V:MVN) opened a $50 million private placement underwritten by a syndicate led by Casimir Capital on a bought deal basis.  The deal is expected to close on or about March 7, 2012.
• Shoreline Energy Corporation (TSX:SEQ) opened a $12 million private placement underwritten by a syndicate led by Macquarie Capital Markets Canada Ltd. on a best efforts basis.  The deal is expected to close on or about February 28, 2012.
• Amarc Resources Ltd. (TSX-V:AHR) opened a $10 million private placement on a best efforts basis.  The deal is expected to close on or about February 27, 2012.
• Major private placement closings:
• Northland Resources S.A. (TSX:NAU) closed a $326.1 million private placement underwritten by a syndicate led by Pareto Securities AS on a best efforts basis.
• Detour Gold Corporation (TSX:DGC) closed a $276.9 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.
• Xcite Energy Ltd. (TSX-V:XEL) closed a $40.6 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.
• Midas Gold Corp. (TSX:MAX) closed a $40.4 million private placement underwritten by a syndicate led by Haywood Securities on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20120221-oreninc-index-update

After a few down weeks to start off the New Year, the Oreninc Index popped up sharply this week with year-to-date highs in opened deals, opened brokered deals, opened bought deals, and total money announced. Brokers have wandered back from hibernation and begun raising money for natural resource development. 

• Total number of opened deals jumped to 50, the largest number of openings in a given week so far this year.
• Opened brokered deals more than tripled to 16, with an average brokered deal size of $13.9 million.
• Bought deals moved to six, with an average bought deal size of $30 million.
• Total money opened stood at $380.5 million, the highest since October.

This week’s major private placement openings included:

• Rubicon Minerals Corporation (TSX:RMX) opened a $200.90 million private placement underwritten by a syndicate led by GMP Securities on a bought deal basis.  The deal is expected to close on or about February 29, 2012.
• Freehold Royalties Ltd.  (TSX:FRU) opened a $61.50 million private placement on a bought deal basis.  The deal is expected to close on or about February 29, 2012.
• Premier Gold Mines Limited (TSX:PG) opened a $51.75 million private placement underwritten by a syndicate led by RBC Capital Markets on a best efforts basis.  The deal is expected to close on or about February 27, 2012.
• Americas Petrogas Inc. (TSX-V:BOE) opened a $58.96 million private placement underwritten by a syndicate led by TD Securities on a bought deal basis.  The deal is expected to close on or about February 22, 2012.
• Major private placement closings:
• Enerplus Corporation (TSX:ERF) closed a $345 million private placement underwritten by a syndicate led by RBC Capital Markets on a bought deal basis.
• NovaGold Resources Inc. (TSX:NG) closed a $332.50 million private placement underwritten by a syndicate led by RBC Capital Markets on a bought deal basis.
• Hana Mining Ltd. (TSX-V:HMG) closed a $14.92 million private placement on a best efforts basis.
• U3O8 Corp. (TSX-V:UWE) closed an $11.52 million private placement underwritten by a syndicate led by Dundee Securities Ltd. on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20120213-oreninc-index-update

The index remained low this week. A few large companies showed up to the financing party. AltaGas (TSX:ALA) and NovaGold Resources (TSX:NG) each announced financings with the aim of raising over $300 million. However, due to offer size and market cap limits, neither financing affects the index. With brokers warming up to larger companies, hopefully the overall financing market will begin to improve for smaller juniors looking to have effective 2012 drill programs.

·         Total number of opened deals remained at 32.

·         Opened brokered deals fell to three, but average brokered deal size jumped to $19.3 million.

·         Bought deals dropped to one, a $50 million deal.

·         Averaged opened deal size decreased slightly to $4.4 million.

This week’s major private placement openings included:

·         AltaGas Ltd. (TSX:ALA) opened a $350 million private placement underwritten by a syndicate led by BMO Capital Markets on a bought deal basis.  The deal is expected to close on or about February 22, 2012.

·         NovaGold Resources Inc. (TSX:NG) opened a $332.5 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 February 7, 2012.

·         Extorre Gold Mines Limited (TSX:XG) opened a $50 million private placement underwritten by a syndicate led by TD Securities on a bought deal basis.  The deal is expected to close on or about February 22, 2012.

·         Ur-Energy Inc. (TSX:URE) opened a $15 million private placement on a best efforts basis.  The deal is expected to close on or about February 23, 2012.

Major private placement closings:

·         Angle Energy Inc. (TSX-V:NGL) closed a $44.5 million private placement underwritten by a syndicate led by FirstEnergy Capital Corp on a bought deal basis.

·         Allana Potash Corp. (TSX-V:AAA) closed a $20 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis.

·         Hemisphere Energy Corp. (TSX-V:HME) closed a $8.6 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.

·         Bannerman Resources Limited (TSX:BAN) closed a $6 million private placement on a best efforts basis.

Author: Eli Fabens

Original Link: http://oreninc.com/orenthink/20120206-oreninc-index-update

The Oreninc Index Update took a one-week break because the Oreninc team spent last week in Vancouver, BC working the conference circuit. This week the index remains relatively flat. It is substantially lower than the same period last year.  This is usually the time when juniors raise money for summer development projects, so hopefully the pace of money flowing into the natural resource space picks up.

·         Total number of opened deals increased to 32.

·         Opened brokered deals stood at six; average brokered deal size moved to $12.4 million.

·         Bought deals stayed at two, and the average size dipped slightly to $30 million.

·         Averaged opened deal size settled at $4.6 million.

This week’s major private placement openings included:

·         Midas Gold Corp. (TSX:MAX) opened a $35.2 million private placement underwritten by a syndicate led by Haywood Securities on a bought deal basis. The deal is expected to close on or about February 14, 2012.

·         Dalradian Resources Inc. (TSX:DNA) opened a $25 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis. The deal is expected to close on or about February 15, 2012.

·         Storm Resources Ltd. (TSX-V:SRX) opened a $25 million private placement on a best efforts basis. The deal is expected to close on or about February 10, 2012.

·         Hana Mining Ltd. (TSX-V:HMG) opened a $14 million private placement on a best efforts basis.  The deal is expected to close on or about February 3, 2012.

Major private placement closings:

·         Guide Exploration Ltd.  (TSX:GO) closed a $36.6 million private placement underwritten by a syndicate led by Scotia Capital on a bought deal basis.

·         Barkerville Gold Mines Ltd. (TSX-V:BGM) closed a $24.4 million private placement underwritten by a syndicate led by D&D Securities on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 18 months.

·         Donnycreek Energy Inc. (TSX-V:DCK) closed a $5.6 million private placement on a best efforts basis.    

·         Petro Vista Energy Corp. (TSX-V:PTV) closed a $1.3 million private placement on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20120130-oreninc-index-update

Original Link: http://oreninc.com/orenthink/20111219-oreninc-index-update

Original Link: http://oreninc.com/orenthink/20111213-oreninc-index-update

After a week-long hiatus due to American Thanksgiving and the best excuse to eat far more turkey and sweet potatoes than is healthy, the Oreninc Index is back with gusto.  The break week experienced a fairly sharp dip down to the lowest level since early October.  However, the week ending December 1st popped right back up and ended as the best week since early April.

The moving average slipped as well but deals keep rolling in, including brokered and bought deals.  In addition, the percentage of announced money going to the gold sector is the lowest in months, showing that smaller sectors are able to go out and find willing investors.  Diversified fundraising shows a more confident and healthy market for natural resources overall.

• Total number of opened deals climbed to 60, the highest since early 2011.
• Opened brokered deals continued an upward trend and moved to 21, the highest since April.
• Average brokered deal size climbed to $11.7 million.
• Bought deals announced increased to seven; average bought deal size moved to $15.7 million.
• Averaged opened deal size jumped to $5.4 million, the highest since October.

This week’s major private placement openings included:

• Karnalyte Resources Inc. (TSX:KRN) opened a $115.05 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.  The deal is expected to close on or about December 19, 2011.
• Peyto Exploration & Development Corp. (TSX:PEY) opened a $100 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 December 16, 2011.
• Atacama Minerals Corp. (TSX-V:AAM) opened a $50 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis.  The deal is expected to close on or about December 20, 2011.
• Strategic Oil & Gas Ltd. (TSX-V:SOG) opened a $40.07 million private placement underwritten by a syndicate led by Macquarie Capital Markets on a best efforts basis.  The deal is expected to close on or about December 21, 2011.

Major private placement closings:

• Franco-Nevada Corporation (TSX:FNV) closed a $391 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis.
• Tourmaline Oil Corp. (TSX:TOU) closed a $55.8 million private placement underwritten by a syndicate led by Peters & Co. on a bought deal basis.
• Sulliden Gold Corporation (TSX:SUE) closed a $50.01 million private placement underwritten by a syndicate led by National Bank Financial on a bought deal basis.
• Atacama Minerals Corp. (TSX-V:AAM) opened a $50 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis.
• Aurcana Corporation (TSX-V:AUN) closed a $34.4 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 24 months.

Original Link: http://oreninc.com/orenthink/20111205-oreninc-index-update

The Oreninc Index continues to have a resurgent Q4 even with the five-week moving average falling slightly.  International economic fears are certainly dampening investor confidence and the amount of money raised, but the mining financing market seems to be weathering the storm fairly well.

·         Total number of opened deals remained at 52.

·         Opened brokered deals continued an upward trend and moved to 17, the highest number since April.

·         Average brokered deal size fell from $10.5 million to $6.8 million.

·         Bought deals announced decreased to four; average deal size dropped to $7.25 million.

·         Averaged opened deal size fell to $3.3 million.

If you’re a small venture looking to raise money, it appears you’re in good company with investors and brokers willing to talk.  Now is the time to get started on the last flow-through of the year and to find investors looking for flow-through tax advantages.

This week’s major private placement openings included:

·         Seabridge Gold Inc. (TSX:SEA) opened a $27.4 million private placement underwritten by a syndicate led by Stonecap Securities on a best efforts basis.  The deal is expected to close on or about December 6, 2011.

·         Klondex Mines Ltd. (TSX:KDX) opened a $21 million private placement underwritten by a syndicate led by GMP 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 November 29, 2011.

·         Mercator Minerals Ltd. (TSX:ML) opened a $20 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months.

·         Manitok Energy Inc. (TSX-V:MEI) opened a $20.01 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 December 5, 2011.

Major private placement closings:

·         ShaMaran Petroleum Corp. (TSX-V:SNM) closed a $51 million private placement on a best efforts basis.

·         Donnybrook Energy Inc. (TSX-V:DEI) closed a $12 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis.

·         Roxgold Inc. (TSX-V:ROG) closed an $11.36 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis.

·         Fission Energy Corp. (TSX-V:FIS) closed a $10.03 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20111121-oreninc-index-update

Original Link: http://oreninc.com/orenthink/20111114-oreninc-index-update

The Oreninc Index is up ever so slightly compared to last week. However, the index remains on the climb after the summer doldrums. Deal volume is down from last week, but broker participation is up substantially in terms of total dollars raised and percent of dollars raised by brokers.  The five-week moving average continues its climb, and two slower weeks do not change our predictions of a strengthening in Q4.

·         Total number of opened deals fell to 32, a four-week low.

·         Opened brokered deals fell to 10, down from 13 but still above the eight-week average.

·         Average brokered deal size almost tripled to $12.8 million.

·         Bought deals announced dropped to four; average deal size jumped to $23.3 million.

·         Averaged opened deal size increased to $5.5 million. 

The main drivers of the suppressed market over the last two weeks have been continuing concerns about the viability of the European bailout plan and questions regarding global economic growth rates over the next 18-24 months. However, we continue to see large deals, bought deals, and brokers out looking for money.

This week’s major private placement openings included:

·         Sulliden Gold Corporation (TSX:SUE) opened a $75 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 29, 2011.

·         Trevali Resources Corp. (TSX:TV) opened 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, and the deal is expected to close on or about November 10, 2011.

·         Roxgold Inc. (TSX-V:ROG) opened an $11 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis.  The deal is expected to close on or about November 16, 2011.

·         Wesgold Minerals Inc. (TSX-V:WSG) opened a $10 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.

Major private placement closings:

·         Perseus Mining Ltd. (TSX:PRU) closed an $81.25 million private placement underwritten by a syndicate led by Clarus Securities on a bought deal basis. 

·         NGEx Resources Inc. (TSX:NGQ) closed a $27 million private placement on a best efforts basis.     

·         Premier Gold Mines Limited (TSX:PG) closed a $33.43 million private placement underwritten by a syndicate led by RBC Capital Markets on a bought deal basis.

·         ANDINA Minerals Inc. (TSX-V:ADM) closed a $15 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.

Original Link: http://oreninc.com/orenthink/20111103-oreninc-index-update

After two strong weeks, the Oreninc Index stumbled slightly this week due to two main factors: a reduction in the share of brokered money opened and a reduction in average deal sizes across the board. The stumble doesn’t seem to be caused by any major macro issues or fears but seems more in line with the natural volatility of the index. Encouraging economic reports and good market responses to initial euro zone plans bode well for a continued climb and a stronger Q4 2011.

·        

          Total number of opened deals fell to 41, well above the eight-week average of 33.

·         Opened brokered deals remained at 13, the most since May.

·         Average brokered deal size decreased to $4.8 million.

·         Bought deals announced remained at seven, as brokers continue to look for interesting deals.

·         Averaged opened deal size decreased to $3.9 million, below the eight-week average. However, the average market cap is down as well, so smaller companies have been looking to raise money.

·         Gold companies made up only 29% of money announced, well below the eight-week average of 51%.

Companies in various sectors were out looking for money this week. Gold companies made up a much smaller proportion than previous weeks. The increase in deals from other sectors shows confidence in the markets and positive future outlooks for development, especially with the natural fundraising season just beginning.

This week’s major private placement openings included:

·         ShaMaran Petroleum Corp. (TSX-V:SNM) opened a $50 million private placement on a best efforts basis.     

·         Great Western Minerals Group (TSX-V:GWG) opened a $15 million private placement underwritten by a syndicate led by Byron Capital on a best efforts basis.

·         CB Gold Inc. (TSX-V:CBJ) opened an $11 million private placement on a bought deal basis.     

·         Fission Energy Corp. (TSX-V:FIS) opened a $10.03 million private placement underwritten by a syndicate led by Dundee Securities on a bought deal basis. The deal is expected to close on or about November 17, 2011.

Major private placement closings:

·         Western Zagros Resources Ltd. (TSX-V:WZR) closed a $46.62 million private placement on a best efforts basis.

·         Animas Resources Ltd. (TSX-V:ANI) closed a $3.4 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.

·         Pacific Northwest Capital Corp. (TSX:PFN) closed a $2.2 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.

·         Alexandria Minerals Corporation (TSX-V:AZX) closed a $3 million private placement underwritten by a syndicate led by Union Securities on a best efforts basis. Each unit includes a 1/2 warrant that expires in 12 months.

Original Link: http://oreninc.com/orenthink/20111027-oreninc-index-update

 
•    Total number of opened deals climbed to 51, the most in one week since July.
•    Opened brokered deals jumped to 13.
•    Average brokered deal size decreased to $13 million, as brokers participated in a variety of deal sizes.
•    Seven bought deals were announced, the most since May.
•    Averaged opened deal size decreased to $5.7 million.

The market is bouncing back, as brokers come out of hibernation and investors look for places to put their money. The index saw lower average deal sizes across the board compared to last week, but it may mean that smaller companies are out raising the money they need both with and without brokers. Particularly the large number of bought deals is a good sign of market confidence.

This week’s major private placement openings included:

•    Painted Pony Petroleum Ltd. (TSX-V:PPY.A) opened a $94.4 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis. The deal is expected to close on or about November 8, 2011.
•    Western Zagros Resources Ltd. (TSX-V:WZR) opened a $46.62 million private placement on a best efforts basis. The deal is expected to close on or about October 31, 2011.
•    Victoria Gold Corp. (TSX-V:VIT) opened a $25.89 million private placement underwritten by a syndicate led by BMO Capital on a bought deal basis. The deal consists of both flow-through and non-flow-through shares and is expected to close on or about November 9, 2011.
•    Kaminak Gold Corp. (TSX-V:KAM) opened a $15 million private placement underwritten by a syndicate led by Paradigm Capital on a bought deal basis. The deal consists of both flow-through and non-flow-through shares and is expected to close on or about November 8, 2011.

Major private placement closings:

•    Romarco Minerals Inc. (TSX:R) closed a $92.58 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.
•    CGX Energy Inc. (TSX-V:OYL) closed a $92.01 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis.
•    Rockwell Diamonds Inc. (TSX:RDI) closed a $7.8 million private placement on a best efforts basis.
•    Castle Resources Inc. (TSX-V:CRI) closed a $6 million private placement underwritten by a syndicate led by Scotia Capital on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20111020-oreninc-index-update

Hope springs eternal for junior explorers. For most projects, the highest value comes before a single assay is taken. The fact is most of the world is cow pasture or goat hills and will never become a mine. Among the 1,400+ junior mining companies on the TSX alone, maybe 100 have economic projects. If you talk to every CEO, he is sitting on the next Eldorado Gold Mine. In reality, most aren’t.

It all sounds like common sense, but the extraordinary returns from the few results-delivering projects spur the mania of all half-failed projects. Of the billions of dollars spent, most is wasted hunting for good ore bodies that do not exist. Investors remember the few wins, forget the painful losses, and grow to hate the lingering half-dead companies in their portfolios.

We‘re not advising people to forego investing in exploration plays. We do, however, want to remind people to ask a few basic questions when looking at whether a project makes sense:

• Historically, has the location hosted similar deposits?
• Is the management qualified and not recently out of the adult film industry or some other non-relevant background? Any exploration play on the grassroots level without a geologist in one of the top three jobs scares us.
• Could the ore body be material? What is the shape and size of the ore body? Does the grade make economic sense? Is it open for expansion?
• Can you imagine a mine in the location? Look at everything from infrastructure to the inverse NIMBY issues. Are locals mining friendly? Is there water? Is it too hot/cold?
• Who are the directors, and have they seen a project or two before this one? Don’t expect rocket scientists, as there are relatively few world-class directors to go around for all 1,400 companies. Big company experience can come from the accounting or HR departments of the majors, so not all ex-Noranda or BHP “executives” were created equal.

Good projects tend to be excellent risk-reward bets, but they’re rare. You must understand the limitations and that even the best management team in the world cannot always find an ore body with the right combination of the aforementioned factors to turn it into a viable mine. Profit from the winners, sell the losers, and be skeptical about drinking the Kool-Aid about gold in the hills.

The other option is the lemming game. Get in early, enjoy the ride, sell the shares, and find the next ride. Lots of money is made in mining retail investors and never building a mine.

Original Link: http://oreninc.com/orenthink/20110830-there-s-gold-in-the-h

The Oreninc Index is up on a shortened Thanksgiving week.  A number of deals over $20 million opened, and we saw strong broker support. More companies are raising money, and investors are finding the courage to add some risk to their portfolios. A number of economic indicators released this week have pointed to shaky ground, but they’ve been better than previous reports pointing to the sky falling.

·         Total number of opened deals climbed to 32, the most in one week since July.

·         Opened brokered deals remained at five.

·         Average brokered deal size increased to $15.5 million, over 2.5 times higher than last week.

·         Three companies announced bought deals this week. Additionally Perseus Mining Ltd. (TSX:PRU) announced an $81.25 million bought deal, but it is not included in index calculations because of market cap size.

·         Averaged opened deal size shifted up to $6.7 million, a three-week high and two times last week’s average.

The market remains highly volatile, but the index’s five-week moving average has begun to climb over the last five weeks after being on steady decline since March. The recent growth is likely driven by the beginning of fundraising season, and it a good sign for the overall market, including junior resource companies, investors looking to get in on the action, and brokers wanting a nice year-end bonus.

This week’s major private placement openings included:

·         Perseus Mining Ltd. (TSX:PRU) opened an $81.25 million private placement underwritten by a syndicate led by Clarus Securities on a bought deal basis. The deal is expected to close on or about November 2, 2011.

·         Monument Mining Limited (TSX-V:MMY) opened a $70 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.

·         Carpathian Gold Inc. (TSX:CPN) opened a $40 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis. The deal is expected to close on or about November 3, 2011.

·         Premier Gold Mines Limited (TSX:PG) opened a $30.5 million private placement underwritten by a syndicate led by RBC Capital Markets on a bought deal basis. The deal includes both flow-through and non-flow through shares and is expected to close on or about October 31, 2011.

Major private placement closings:

·         Surge Energy Inc. (TSX-V:SGY) closed a $60 million private placement underwritten by a syndicate led by National Bank Financial on a bought deal basis.

·         Arcan Resources Ltd. (TSX-V:ARN) closed a $50.14 million private placement underwritten by RBC Capital Markets on a bought deal basis.

·         RMP Energy Inc. (TSX:RMP) closed a $25.06 million private placement underwritten by a syndicate led by GMP Securities on a bought deal basis. The issuance included flow-through and non-flow-through shares.

·         Kokanee Minerals Inc. (TSX-V:KOK) closed a $7.5 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 12 months.

Original Link: http://oreninc.com/orenthink/20111013-oreninc-index-update

• Total number of opened deals fell to 24, down from last week and below the eight-week average.
• Opened brokered deals remained at five.
• Average brokered deal size fell to $5.6 million, a five-week low.
• No bought deals were announced during the week ending October 6.
• Averaged opened deal size fell to $3.3 million, a three-week low.

This week’s major private placement openings included:

• Golden Minerals Company (TSX:AUM) opened a $30.6 million private placement on a best efforts basis. The deal was expected to close on or about October 7, 2011.
• Armistice Resources Corp. (TSX:AZ) opened a $25 million private placement underwritten by a syndicate led by Canaccord Genuity on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 36 months, and the deal is expected to close on or about October 18, 2011.
• Opawica Explorations Inc. (TSX-V:OPW) opened a $5.54 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 24 months.
• Revolution Resources Corp. (TSX:RV) opened a $4 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 48 months, and the deal is expected to close on or about October 14, 2011.

Major private placement closings:

• Nautilus Minerals Inc. (TSX:NUS) closed a $98.1 million private placement on a best efforts basis.    
• 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. 
• Blue Gold Mining Inc. (TSX-V:BGX) closed a $24.59 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.
• Roxgold Inc. (TSX-V:ROG) closed a $20 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis. 

Original Link: http://oreninc.com/orenthink/20111011-oreninc-index-update

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

This week the Oreninc Canadian Resource Financing Index climbed to its highest point since April, even as fears surrounding the global economy mount. This week’s spike was driven by increases in broker participation, average deal size, and the number of deals opened.  Even amid concerns about a potential double dip recession and the downward shifting of commodity prices, companies were active in raising money this week.

• Total number of opened deals climbed to 32, the most since late July.
• Opened brokered deals remained flat at 7, but the average size increased sevenfold to $42 million.
• Six opened bought deals, the most openings in a single week during Q3 so far.
• Averaged opened deal size climbed to $10.5 million, above the YTD average and more than four times last week’s average.

The large number of bought deals in Oil & Gas and Gold put upward pressure on the resource financing market this week. Bought deals accounted for 88% of total money opened.  Even disregarding all bought deals, it would have been a fairly good week in terms of number of deals opened.  Brokers participating in large deals show increasing confidence from the banking side. The market did not see any small brokered deals, but even with global markets looking down, the financing market seems poised to continue its climb towards a busy fall fundraising season.

This week’s major private placement openings included:

• Arcan Resources Ltd. (TSX-V:ARN) opened a $135.14 million bought deal private placement consisting of common and flow-through shares. The syndicate of underwriters is led by RBC Capital Markets, and the deal is expected to close on or about October 7, 2011.
• CGX Energy Inc. (TSX-V:OYL) opened an $80.01 million private placement underwritten by a syndicate led by Cormark Securities on a bought deal basis. The deal is expected to close on or about October 12, 2011.
•  Surge Energy Inc. (TSX-V:SGY) opened a $40 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 12, 2011.
• RMP Energy Inc. (TSX:RMP) opened a $20 million private placement underwritten by a syndicate led by GMP Securities on a bought deal basis.  The deal is expected to close on or about October 12, 2011.
• Major private placement closings:
• Galleon Energy Inc. (TSX:GO) closed a $6.46 million private placement on a best efforts basis.   Each unit includes 1 warrant that expires in 36 months.
• Northern Gold Mining Inc. (TSX-V:NGM) closed a $10.87 million private placement consisting of common and flow-through shares on a best efforts basis.     
• Tigray Resources Inc. (TSX-V:TIG) closed a $5.25 million private placement on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.
• Garrison International Ltd. (TSX-V:GAU) closed a $3.43 million private placement on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

Original Link: http://oreninc.com/orenthink/20110922-oreninc-index-update

When looking at junior stocks, one must develop filters. We recommend looking at junior stocks based on four important measures: sector, management team, stage of development, and deal structure. Order of importance is up to the individual investor. This is the final post in a series of four that addresses the above four topics.

A good property with a bad deal structure is a horrible investment. Ideally, ownership is in a clear, straightforward setup. If there are derivatives, expect valuation discounts.

A company structures the ownership of a property in two stages. First, it must acquire the property and thus structure a deal to buy the undeveloped resource. Secondly, it must take in risk-sharing partners for further development of the property.

We prefer to see companies with clean ownership and a decent royalty structure on property acquisition. However, the better the property, the less likely it is. The best ownership scenario is where a company does its own grassroots exploration and maintains 100% ownership with no royalties. The second best structure is a clean joint venture. With clean JVs, risk and reward is shared rationally between the two owners.

We do not like structures where strategic partners come in early and pay the bills but also completely remove any takeover premium and much of the long-term value. On good properties, these deals destroy value.

When looking at ownership structure, make sure there is a takeover premium plus a path to ownership by a major company, and not just one major. Make sure no one company can hold the property hostage, and make sure you understand how everyone at the table, including the governments, is planning on making money.

Original Link: http://oreninc.com/orenthink/20110809-picking-junior-stocks

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

When looking at junior stocks, one must develop filters. We recommend looking at junior stocks based on four important measures: sector, management team, stage of development, and deal structure. Order of importance is up to the individual investor. This is the third post in a series of four that addresses the above four topics.

For every investor, picking junior stocks based on stage of development is a very personal choice. Laying out the options is easy. Understanding the risks is much harder.

Grassroots

A grassroots exploration company is a good investment if you like the sector and the company’s management team. However, you have to be willing to diversify significantly in order to pay for your losers. The return is huge if grassroots exploration companies hit the mother lode. The brain, however, often forgets all the times they miss. With high-risk exploration companies, we recommend a strategy of diversifying and not falling in love, and when profits come early, take the principal off the table and trade with the profits.

Grassroots is gambling. Over the long term, the only one that wins is the house, and if you’re reading this entry, you’re probably not the house.

Exploration

Companies that find something become very binary. Either something turns into something great or something really is nothing. Pre-resource statement, post-grassroots is the stage of development where smart money can be made.

Kool-Aid needs to be filtered, and the rose-colored glasses should be worn only half on to properly look at exploration companies. Good investors build 3-D models of intersections, research the location, get comfortable with the process, and develop taste buds to detect the Kool-Aid. Lots of companies in the exploration stage that will never become mines will still go up in value.

Pre-Feasibility/Feasibility

Risk goes up because everything from politics to process gets closely examined, and valuations increase but not always with a return. Every project is feasible at first glance in the company-paid-for study. There are hundreds of pages to read, and by the time you understand the technical reports, you will have a sense of whether the project will be a winner. Unlike in the exploration stage, you cannot make money on marginal projects; you need the project to become a mine. Sell anything that is marginal and focus your dollars on the winners.

The market, however, punishes good projects for bad decisions made by management. Some investors base their entire trading strategy on looking for fallen angels, where the fall from grace was due to a bad management team or a bad financing, because they have faith that management will change or the company will get taken over. Good projects can be had cheap when investors have the stomach to wait for change.

Post-Feasibility

This is where the big boys play. Returns decrease, liquidity increases, and theoretically, risk has gone down by this stage. However, lots of companies make it to this stage and then stumble. Finding the open check book to finance a mine and leaving some ownership with the original investors is not so easy. There is also additional risk in mine construction, permitting, and commodity pricing.

This is a stage of investment that is suitable for institutional investors and probably does not deliver adequate risk and reward for smaller investors. Smaller investors can get enough liquidity and substantially larger rewards with similar risks if they do their homework in the first three stages.

Original Link: http://oreninc.com/orenthink/20110802-picking-junior-stocks

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

The Oreninc Canadian Resource Financing Index climbed back up to early August levels this week, which is still far from healthy. The total number of deals opened climbed again and is just below Q2-Q3 averages.  Similarly to the previous two weeks, brokers were basically nonexistent. 

•  Total number of opened deals climbed to 31, a five-week high.
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• Opened brokered deals moved up slightly to three.
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• No bought deals were opened for the third time this year, the first two occurring in the two weeks prior.
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• Averaged opened deal size climbed to $4.8 million, a five-week high and above the Q2-Q3 average.
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• Nautilus Minerals Inc.’s (TSX:NUS) $100 million deal was a driving force behind the jump in the index and accounted for 67% of announced money this week.

Following two abysmal weeks, the index moved back into line with the expected seasonal slump. A lot of uncertainty still remains about where the global economy is heading, and gold continues to dominate the financing space. This week saw one of the largest non-brokered deals of the year so far in Nautilus Minerals Inc.’s $100 million deal.  We would not expect any great changes in the next week or two, but financings should begin to pick up over the next six to eight weeks as we move out of the summer exploration season.

This week’s major private placement openings included:

• Crescent Point Energy Corp. (TSX:CPG) opened a $375 million bought deal underwritten by BMO and CIBC. The deal is expected to close on or about September 21, 2011. The deal is not included in index calculations, however, as the offer size is over $100 million.
• Nautilus Minerals Inc. (TSX:NUS) opened a $100 million private placement on a best efforts basis.
• Animas Resources Ltd. (TSX-V:ANI) opened a $3.4 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
•  Niocan Inc. (TSX:NIO) opened a $3.01 million private placement on a best efforts basis.     The deal is expected to close on or about September 2, 2011.
• Eloro Resources Ltd. (TSX-V:ELO) opened a $3 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 18 months.

Major private placement closings:

•   Avion Gold Corp. (TSX:AVR) closed a $57.61 million private placement underwritten by a syndicate led by National Bank Financial on a bought deal basis. 
• Base Oil & Gas Ltd. (TSX-V:BOG) closed a $13.8 million private placement underwritten by a syndicate led by Dundee Securities on a best efforts basis.
• Trevali Resources Corp. (TSX:TV) closed a $10.39 million private placement underwritten by a syndicate led by Kallpa Securites on a best efforts basis.

Original Link: http://oreninc.com/orenthink/20110901-oreninc-index-update

When looking at junior stocks, one must develop filters. We recommend looking at junior stocks based on four important measures: sector, management team, stage of development, and deal structure. Order of importance is up to the individual investor. This is the second post in a series of four that addresses the above four topics.

Management teams always look good based on first appearances. However, two skills set strong management teams apart from weak management teams.

Exploration Ability

To a high degree, exploration is driven by fate. Just because someone found a good project last year does not mean he or she will find a good one this year. Still, some management teams have more skill than others. Any management team that has already found two good projects is probably working off of skill and not luck. However, the best thing we ever heard from an old hand in the game is every successful mine has 30 single parents.

Ability to Manage the Treasury

Managing the treasury means the management team is skilled at mining the stock market as well. Some junior companies spend all their time looking at rock and fail to deliver results because they finance at the wrong times and do not develop the right financial relationships.

We like to see a combination of a good exploration guy or gal and a strong financial team. Exploration can be driven by one good person. Treasury management, however, requires a strong person with the ability to develop an IR team that delivers results. For good treasury management, there must be one to two influential people supporting the stock.

When in doubt, pick up the phone, call the management, and have a chat.

Original Link: http://oreninc.com/orenthink/20110726-picking-junior-stocks

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

When looking at junior stocks, one must develop filters. We recommend looking at junior stocks based on four important measures: sector, management team, stage of development, and deal structure. Order of importance is up to the individual investor. This is the first post in a series of four that addresses the above four topics.

An important step before investing in junior companies is deciding which sectors to focus on. When choosing sectors, look for natural barriers to entry, examine supply and demand dynamics, and compare companies within the sector.

Barriers to Entry

We like markets with natural barriers to entry. Take the steel industry, for example. There is general agreement that steel demand will remain strong for the foreseeable future due to rapid growth in Asian demand. Yet not every part of the steelmaking process is an equally good investment because the various stages have different levels of barriers. Profit flows to the naturally constrained parts of the value chain.

·         Iron ore and coking coal mines: Currently, the coking coal and iron ore markets have solid barriers to entry controlled by a combination of oligopolies, difficult logistics, and a lack of high-quality undeveloped resources. Going forward, iron ore producers and juniors have a strong natural limit to competition. This is coupled with a strong demand structure that has no product substitution that can compete with steel.

·         Shipping companies: Currently, owning a shipping company is a lousy business. In good years you make a fortune. However, there is no long-term barrier to making ships. Any government that wants strong coastal employment and has a bit of ocean-front land can build a shipyard. The technology has not fundamentally changed for 40 years, and the ability for customers to substitute one ship for another is easy.

·         Steelmakers: Steelmakers have more barriers to entry than ship owners but fewer than miners. However, they also suffer from an ability to add capacity when times are strong and no government desire for rationalization when times are weak. Therefore, steelmakers are prone to excess capacity being built.

In the steel industry, miners have strong barriers to entry. Shippers and steelmakers do not. Buy the miners, hedge by selling short the steel mills.

Supply & Demand

Look for commodities in high demand and short supply. A good commodity cannot be easily substituted.

When looking at demand, consider this: without certain commodities, economies and societies would crumble. Strong commodities include copper, platinum, coking coal, iron ore, and oil. We need each of these commodities for essential functions like electricity production, emissions filtration, steelmaking, or energy. These are the basic building blocks of a modern society. It is impossible to imagine a world without steel for building and copper wire for electricity.

Many factors can affect supply. We could write for pages about how the iron ore oligopoly and the lack of new copper deposits limit supply in those sectors. We could also write about how South Africa’s “use it or lose it” mineral policy has resulted in too much platinum being planned for exploitation. In a good investment, supply limitations must be driven by either natural barriers to production or a political or economic barrier that is very difficult to change.

Comparing Within the Sector

The temptation is to buy any company that looks good without knowing or understanding its competitors, but competitors define the quality of a company. As an investor, it is important to compare companies within sectors. Unless you know what a good copper company looks like in grade, location, and management, you cannot tell if the company you are focusing on is worth an investment.

However, while you should compare companies within the same sector, it is no use comparing companies across sectors. When comparing diamonds and lithium, for example, the definition of a good location is completely different. For diamonds, a good location is wherever the diamonds are. In the lithium sector, however, investors expect roads, power, and water in the region before they will even look at a project. When you compare across sectors, location becomes very hard to judge. This is one example of a sector-dependent factor.

Conclusion

Choose sectors where competition faces natural barriers to entry. Supply should be controlled by Mother Nature, demand should be driven by China and the rest of Asia, and logistics should be tough but feasible once built.

Original Link: http://oreninc.com/orenthink/20110718-picking-junior-stocks

With few deals overall and no large deals to give the index a boost, we saw the lowest YTD figures in all areas for the Oreninc Index this week. It seems the uncertainty of global markets and the fear of a double-dip recession have caused almost everyone to take a step back and reconsider whether a raise is a good decision right now. Based on the numbers, most people think it is not.

·         Total number of opened deals fell to 12, a YTD low.

·         Opened brokered deals remained at three, tied with last week’s YTD low.

·         No bought deals were opened for the first time this year.

·         Averaged opened deal size fell to $1.2 million, a YTD low.

·         Percentage brokered to non-brokered deals fell to 36%, not a YTD low but close.

The index took a sharp drop to its lowest-ever point. As uncertainty takes over, firms have been thinking a little harder before trying to raise money for themselves or other companies in the current market environment. In the last few weeks, opened deals have also been closing with less than full books.  It seems to be a fairly unpleasant time for all parties involved.

This week’s major private placement openings included:

·         Aura Silver Resources Inc. (TSX-V:AUU) opened a $4 million private placement underwritten by Union Securities on a best efforts basis. Each unit includes a 1/2 warrant that expires in 24 months.

·         Castle Peak Mining Ltd. (TSX-V:CAP) opened a $3 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 12 months. The deal is expected to close on or about September 30, 2011.

·         Prosperity Goldfields Corp (TSX-V:PPG) opened a $1.7 million private placement on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.

·         Midnight Sun Mining Corp. (TSX-V:MMA) opened a $1.6 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 18 months.

Major private placement closings:

·         Cequence Energy Ltd. (TSX:CQE) closed a $56 million private placement underwritten by Peters & Co. on a bought deal basis. 

·         Sterling Resources Ltd. (TSX-V:SLG) closed a $45 million private placement underwritten by RBC Capital on a bought deal basis.

·         Tanzanian Royalty Exploration Corp. (TSX:TNX) closed a $30 million private placement underwritten by Casimir Capital on a bought deal basis. Each unit includes 1 warrant that expires in 24 months.

·         Carpathian Gold Inc. (TSX:CPN) closed a $20 million strategic deal.

Original Link: http://oreninc.com/orenthink/20110818-oreninc-index-update

An underwriter acts as a gatekeeper between institutions and companies. Some would argue that underwriters are not important, but we disagree. Underwriters perform the vital functions of keeping track of what investors want to buy and grooming companies for financing.

The right underwriter for a company already knows the right investors. His bank has already financed a company’s competitors and has a strong sector focus. If the underwriter does not understand a sector, odds are he will be much weaker at picking the targeted investors.

The relationship that matters is the underwriter’s equity sales team’s relationship with institutions. The relationship that matters less is the company’s relationship with the broker. If a company has an excellent relationship with an underwriter that is not capable of delivering results, that relationship is a net loss for the company.

When picking the right underwriter, we have a few rules. The underwriter must have the following:

·         experience in the company’s sector

·         experience in the offer size range the company is looking to raise

·         a history of supporting companies post-raise

·         a history of delivering to companies what they press release during the initial fundraising process

Choosing the right underwriter is much like choosing between a used Ford and a used Chevy. Every underwriter will be stronger in some area or another; it is important to understand where an underwriter is weak so that the company can get additional support in these areas.

Of course, you could always just hire us to pick for you.

Original Link: http://oreninc.com/orenthink/20110628-selecting-an-underwri

The index continued to relax on the back of global economic fears.  This week’s index shows a distinct change from past weeks because of the Oreninc team’s decision to shift the index away from majors and focus solely on resource juniors. In the future, the index will only take into account deals including companies with a sub-$1.5 billion market cap and companies looking to raise less than $100 million. This week Avion Gold Corp.’s (TSX-V:AVR) bought deal saved this week from becoming a clear YTD low.

• Total number of opened deals rose to 22, up from last week’s YTD low.
• Opened brokered deals fell to three, a YTD low.
• Opened bought deals stayed constant at three.
• Average opened deal size climbed to $4.4 million.

·         Percentage of money raised by brokers moved to within a half-percent of the YTD average of 67%.

The index remained steady likely due to continuing fears relating to the U.S. credit downgrade and growing concerns over sovereign debt crises in Europe. The only major support came after close on Thursday with Avion Gold Corp.’s bought deal opening. With gold hovering around $1,800 per oz., flirting daily with record-highs, it is no surprise that gold and precious metals continue to dominate the financing space. We expect another flat week and not much gain in the next few weeks as global markets attempt to re-align.

This week’s major private placement openings included:

·         Avion Gold Corp. (TSX:AVR) opened a $50.09 million private placement on a bought deal basis.  The syndicate of underwriters is led by National Bank Financial.   

·         Base Oil & Gas Ltd. (TSX-V:BOG) opened a $15 million private placement on a best efforts basis.  The syndicate of underwriters is led by Dundee Securities, and the deal is expected to close on or about August 31, 2011.

·         Strathmore Minerals Corp. (TSX:STM) opened an $8 million private placement on a bought deal basis.     

·         Stealth Energy Inc. (CNSX:SLH) opened a $6 million private placement on a best efforts basis.   Each unit includes a 1/2 warrant that expires in 12 months.

Major private placement closings:

·         Orvana Minerals Corp. (TSX:ORV) closed a $17 million private placement on a best efforts basis.  The syndicate of underwriters was led by Raymond James.

·         Northern Freegold Resources Ltd. (TSX-V:NFR) closed an $8.18 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 18 months.

·         Pacific Wildcat Resources Corp. (TSX-V:PAW) closed a $5.57 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.

·         Rock Tech Lithium Inc. (TSX-V:RCK) closed a $4.47 million private placement on a best efforts basis. The syndicate of underwriters was led by Mackie Research. Each unit includes a 1/2 warrant that expires in 24 months.

Original Link: http://oreninc.com/orenthink/20110811-oreninc-index-update

We love copper, but is all copper created equal? If two mines have the same grade, same pit profile, same production profile, and same recovery, but one is located in the Congo and one is located across the border in Zambia, should we value both the same?

Let’s go more extreme. Do investors prefer the country risk of the USA or the Congo?

USA: USA’s country risk includes the high cost of permitting coupled with NIMBY (not in my backyard). Investors want to see mines built, but no one wants a mine built where it’s visible. This combination results in overregulation where it takes years to get a mine into production. Lots of trees die to generate the thousands of pages of technical reports no one will read but are necessary to get the mine built. In many ways, regulation in the US has stopped mineral development. In the state of Oregon, for example, there are no new mines, and there probably never will be.

Congo: Every morning you wake up and worry some government official might have been killed, overthrown, or deposed. The other option is the government gets stronger and wants contracts re-written. At the same time, we’re seeing mines being built quickly and usually at much lower costs.

The US country risk is overregulation. The Congo’s country risk is a combination of nationalization and anarchy. As an investor, it is getting harder to decide which one to prefer. In the Congo, the mine gets built, but tomorrow you might find you no longer own it. In the US, the ore body is discovered and 20 years later the paperwork might have started.

We realize our comparison is extreme, however. Canada, Australia, Zambia, Indonesia, and lots of other places lie between the Congo and the USA.  We do not think anyone, including the Fraser Institute, has built a rational discount curve for the resource investor. (By the way, we like the Fraser Institute; it’s the best place to start looking at country risk.) At best, what we receive is rough guidance. Had you asked us if Egypt or the Congo had a higher chance of revolution last year, we would have said the Congo.

Every day, we use up more and more natural resources. Country risk is everywhere, and the reality is we have a choice: chase higher grades in more politically difficult countries or accept regulations that allow you to build a mine in 30 years (maybe) with low grades.

The choice is yours as an investor.

Original Link: http://oreninc.com/orenthink/20110614-looking-at-country-ri

Back in a slump again, the index nearly fell to a YTD low in the week ending August 4th. Broker participation increased to the highest it’s been since April, but that’s not saying much since the total number of deals was the lowest for the YTD. 

·         Total number of deals opened fell to 14, a YTD low.

·         Opened brokered deals fell to five, a three-week low.

·         Opened bought deals dropped to three, below last week but in line with the last few months.

·         Average opened deal size also fell from last week’s peak but is slightly better than the 10-week average.

·         Percentage of money raised by brokers climbed to 79%, the highest since April.

On the back of market confusion caused by the hyper-partisan US Congress and continuing poor economic reports from around the globe, it is no surprise that the Oreninc Canadian Resource Financing Index has fallen back into its hole. Brokers appear to be more involved, but it is not so much because brokers have been more active, but rather due to a lack of non-brokered deals. It is starting to sound like a broken record, but once again gold companies were the only group that appeared able to raise money, making up 70% of companies that opened deals.

This week’s major private placement openings included:

·         Pinecrest Energy (TSX-V:PRY) opened a $60 million private placement on a bought deal basis.  The syndicate of underwriters is led by Canaccord, and the deal is expected to close on or about August 24, 2011.

·         Callinex Mines Inc. (TSX-V:CNX) opened a $6.6 million private placement underwritten by Secutor Capital on a best efforts basis.  The deal is expected to close on or about August 25, 2011.

·         El Condor Minerals Inc. (TSX-V:LCO) opened a $6 million private placement consisting of flow-through and non-flow-through shares on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 12 months.

·         Catalyst Copper Corp. (TSX-V:CCY) opened a $2.1 million private placement on a best efforts basis.     

Major private placement closings:

·         Nevada Copper Corp. (TSX:NCU) closed a $65.07 million private placement on a bought deal basis.  The syndicate of underwriters was led by Cannacord and Scotia Capital.

·         Avalon Rare Metals Inc. (TSX:AVL) closed a $44.7 million private placement underwritten by Citigroup Global Markets on a best efforts basis. 

·         Volta Resources Inc. (TSX:VTR) closed a $40 million private placement on a bought deal basis.  The syndicate of underwriters was led by Cormark Securities.   

·         Longreach Oil and Gas Limited (TSX-V:LOI) closed a $10.13 million private placement on a best efforts basis.  The syndicate of underwriters was led by Paradigm Capital, and each unit includes 1 warrant that expires in 18 months.

·         Silver Quest Resources Ltd. (TSX-V:SQI) closed a $10.02 million private placement on a best efforts basis, underwritten by a syndicate led by Paradigm Capital. 

Original Link: http://oreninc.com/orenthink/20110804-oreninc-index-update