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Strategies & Market Trends : Dino's Bar & Grill -- Ignore unavailable to you. Want to Upgrade?

To: Dirtythirty who wrote (26)	10/9/2012 10:01:15 AM
From: Goose94	Respond to of 203978

S&P/TSX Venture (JX : 1,344.98), Net Change: 4.13, % Change: 0.31% The window is open – don't jump. A burst of new equity deals in the junior mining space seems to be signalling the year-long freeze on new financings may be over and that mining exploration has been given the green light by the investment community. A Reuters article points out that over the past year, the flow of bought deals for early-stage miners in Canada slowed to a crawl as the euro zone debt crisis and a pullback in emerging economies fuelled market uncertainty. Early-stage explorers often rely on equity financing to fund their development projects and with investors retreating to the sidelines, hundreds of Canadian miners and explorers have been left wondering whether they will be able to secure the capital they need to survive. But…mining stocks have now started to bounce back after falling more than 40% over the past year, reflecting a brighter macroeconomic outlook. Notably, the S&P TSX Metals & Mining Index is up more than 25% since July, giving some early-stage miners confidence to wade back into equity markets. At least one Bay Street executive is expecting a flurry of financings in the months ahead. "There is a large pipeline in place, of companies looking to come to market before the end of the year," he said. The numbers certainly seem to illustrate the pent-up demand. The article highlights that only about $400 million was raised through fewer than 30 bought deals in the spring and summer of 2012, compared with the roughly $2 billion raised via 80 deals a year earlier, according to Oreninc, a firm that tracks financing activity among juniors in Canada. Whether or not we will return to levels seen in 2011 remains to be seen, but the financing window has certainly cracked open, in the last couple weeks alone we’ve seen several sizeable bought deals in the junior space, with the largest being Torex Gold Resources' (TXG) recent $350- million equity financing.