Index up following holiday-shortened week

The Oreninc Index went up slightly during the week ending May 31, 2012.  The situation may even be better than it looks. Even though markets were slow on Monday the 28^th due to American Memorial Day, the other four trading days carried the week in a slow but un-abysmal manner.  We also tend to see a dropoff in weeks following holiday-shortened weeks, so a bump is a good sign.  Overall,however, financing remains difficult for juniors, and the summer is unlikely to provide much relief.

• Total number ofopened deals dropped to 22, the fewest since March.
• Three brokered deals wereannounced; average brokered deal size increased to $15.6 million.
• Two bought deals wereannounced for $37 million.
• Total dollars openedjumped to $104 million; average deal size doubled to $4.7 million.
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This week’s major private placement openings included:

• Cequence Energy Ltd. (TSX:CQE) opened a $32.1 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 June 21, 2012.
• EnerGulf Resources Inc.  (TSX-V:ENG) opened an $18 million private placement on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.
• Rio Verde Minerals Development Corp. (TSX:RVD) opened an $11.6 million private placement on a best efforts basis.  The deal is expected to close on or about June 15, 2012.
• Ridgemont Iron Ore Corp. (TSX-V:RDG) opened a $10 million private placement underwritten by a syndicate led by Dundee Securities on a best efforts basis.  Each unit includes a 1/2 warrant that expires in 24 months.The deal is expected to close on or about June 14, 2012.
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Major private placement closings:

• Canada Lithium Corp. (TSX:CLQ) closed a $30 million private placement underwritten by a syndicate led by Scotia Capital on a best efforts basis. 
• Highland Resources Inc. (TSX-V:HI) closed a $16.5 million private placement on a best efforts basis.  Each unit includes 1 warrant that expires in 24 months.
• Kivalliq Energy Corporation (TSX-V:KIV) closed an $8.4 million private placementunderwritten by a syndicate led by Dundee Securities on a bought deal basis.
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Kaminak Gold Corp. (TSX-V:KAM) closed a $6.3 million private placement underwritten by a syndicate led by Canaccord Genuity on a bought deal basis.

Original Link: http://oreninc.com/orenthink/20120606-oreninc-index-update

Oreninc also publishes the Oreninc Deal Log, a daily list of all financing activity in the TSX resource sectors. Visit http://oreninc.com to see which companies and sectors to watch. Oreninc also writes custom reports for companies on effective capital raising strategies to help companies maintain long-term shareholder value.

Contact Eli Fabens at 360-262-6969 or eli.fabens@oreninc.com

Oreninc publishes the Canadian Resource Financing Index, a weekly numerical index that provides a sense of market depth. It helps companies decide when to finance and brokerage houses determine what type of deals to conduct. The Oreninc Team designed the index to use in their public financing reports for companies on when to finance and which broker to finance with.

Disclaimer: The views presented in Oreninc's blog reflect the opinions of the Oreninc Team only. We use the publicly available data we collect for the ODL to discuss greater market and financing issues. See Terms.