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Oreninc Index Update: 18, 2011

Last updated: 07:32 19 Aug 2011 BST, First published: 11:32 19 Aug 2011 BST

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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: https://oreninc.com/orenthink/20110818-oreninc-index-update

 

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