SOURCE: Oreninc

Oreninc

June 28, 2011 12:19 ET

Oreninc Reports CDN $241M Announced and $76M Closed Financings for the Week of June 20-24

VANCOUVER, WA--(Marketwire - Jun 28, 2011) - Oreninc tracks financings for resource equities in Metals & Mining, Oil & Gas, and Energy traded on the TSX and TSX-V. Following the two slowest weeks for the year to date, the financing market has taken on the persona of Rory McIlroy and rebounded for what could be its best performance since April. However, outside of Oil & Gas and Gold, the market remains sluggish.

Although the market saw a decrease in percent of money raised through brokered deals, the Oreninc Canadian Resource Financing Index saw a substantial rise thanks to sharp increases in total money announced and number of deals announced.

As companies receive their first results from early summer drill programs, they are beginning to look for additional funds needed to expand exploration. Brokers and institutions are hesitant to step up to the line, as the vast majority of new deals have been of the non-brokered variety.

This week Oreninc recorded 47 private placement openings for a total value of $241 million, excluding Husky Energy's $1.2 billion deal. A total of nine brokered deals and eight bought deals were recorded. In addition, 27 private placements closed for proceeds of $76 million, and nine deals were updated.

Significant Deals: June 17-June 23

Openings:

  • Exploration Orbite V.S.P.A. Inc. opened a $50 million private placement underwritten by Mackie Research on a bought deal basis.
  • Atacama Pacific Gold Corporation opened a $30.45 million private placement underwritten by RBC Capital on a bought deal basis.
  • Seabridge Gold Inc. announced a $30 million strategic deal with Royal Gold Inc.
  • Extorre Gold Mines Limited opened a $25 million private placement underwritten by TD Securities on a bought deal basis.

Closings:

  • Southern Arc Minerals Inc. closed an $18 million private placement on a bought deal basis. The proceeds will be used to develop the company's properties in Indonesia.
  • Spartan Oil Corp. closed an $11 million private placement on a best efforts basis.

Oreninc publishes the Oreninc Deal Log, a daily list of all financing activity in the TSX resource sectors, and releases the Oreninc Canadian Resource Financing Index every Thursday after market close. The index measures market strength. 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.

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