November 2013 Newsletter

 

Financings Update

Equity financings in the mining sector have continued at a slow yet steady pace throughout October.  The TSX Venture exchange, where over 1,290 mining and exploration companies are listed, continues to trade below 1,000 and has remained below this level since April of this year. In the current market environment, many companies are strategically raising smaller tranches of cash in an effort to reduce dilution.

One of the most notable headlines of the month was Barrick Gold’s announcement of their $3 billion dollar financing at a common share price of $18.35. They intend to use the proceeds to reduce debts, strengthen their balance sheet and improve the long-term liquidity position of the company. We also question what percentage will be used to acquire gold projects that are severely undervalued.

The Venture Radar provides information about TSX and TSX Venture mining companies who are opening, updating and successfully closing financings.

In October 2013, the Venture Radar posted 106 deals of which 45 successfully raised a combined approximate value of $232 million (Ivanhoe Mines was responsible for raising an impressive $108 million of that total). Approximately 60 new deals opened during October, with a combined value totaling over $3,089,000,000.

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 Top 10 Closed Financings in October 2013

North Arrow Minerals $5.5m October 31, 2013
Balmoral Resources $6.0m October 30, 2013
El Tigre Silver $707k October 30, 2013
Fission Uranium $12.9m October 24, 2013
Kennady Diamonds $9.0m October 22, 2013
Redhawk Resources $2.6m October 17, 2013
Klondex Mines $19.5m October 16, 2013
Energy Fuels $5.0m October 16, 2013
Sulliden Gold $40.1m October 11, 2013
Ivanhoe Mines $108m October 04, 2013
 

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