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Oreninc Index Update: July 21, 2011

Last updated: 09:39 22 Jul 2011 BST, First published: 13:39 22 Jul 2011 BST

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And it goes down down down. This week the Oreninc Canadian Resource Financing Index fell to below 40 for the first time, marking a YTD low.  After last week’s tumble and general poor market conditions, especially with fears of a U.S. debt ceiling crisis, we’re not surprised the index landed where it did this week. Next week will likely yield some decisive answers on the debt ceiling. If the news is good, confidence may be restored and an upward climb may begin, otherwise we don’t expect much improvement.

 

 

·         Total number of opened deals rose to 27, a three-week high.

·         Opened brokered deals clicked up one notch to six.

·         Opened bought deals fell to three, a six-week low.

·         Total dollar volume raised fell to $78.5 million, a six-week low.

·         Average opened deal size fell to $2.9 million, a three-week low.

·         Percentage of total dollars raised by brokers fell to 28%, a YTD low. Oh where, oh where have the brokers gone?

This week the index found itself in a very big hole just when it finally looked as if progress was being made. Brokers are out of the picture, but on the plus side, gold has reached a record high $1,600 per ounce.  The record price may explain why gold companies have been able to open private placements while just about no one else can. Next week will likely be slow again as concerns over the debt ceiling continue to loom.

This week’s major private placement openings included:

·         Carpathian Gold Inc. (TSX:CPN) opened a $20 million strategic deal with Barrick Gold (TSX:ABX). The deal is expected to close on or about August 1, 2011.

·         Argentex Mining Corporation (TSX-V:ATX) opened 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. The deal is expected to close on or about August 10, 2011.

·         Pacific Wildcat Resources Corp. (TSX-V:PAW) opened a $10 million private placement on a best efforts basis. Each unit includes a 1/2 warrant that expires in 18 months.

·         Northern Freegold Resources Ltd. (TSX-V:NFR) announced an $8 million non-brokered private placement. Each unit includes 1 warrant that expires in 18 months. 

Major private placement closings:

·         Sunward Resources Inc. (TSX-V:SWD) closed a $51.3 million private placement on a best efforts basis. Each unit includes 1 warrant that expires in 36 months.

·         Pretium Resources Inc. (TSX:PVG) closed a $15.08 million private placement  underwritten by CIBC on a bought deal basis. 

·         Kincora Copper Limited (TSX-V:KCC) closed a $12.14 million private placement underwritten by Ocean Equities on a best efforts basis.

·         Canada Fluorspar Inc. (TSX-V:CFI) closed a $14 million private placement as part of their qualifying transaction.


Original Link: https://oreninc.com/orenthink/20110721-oreninc-index-update

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