Integra announces US$15 million bought deal

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Integra Resources Corp. [ITR-TSXV.ITR, IRRZF-OTCQB] has announced a US$15 million bought deal financing involving the sale of 5.9 million common shares priced at US$2.55 per share to an underwriting syndicate led by Raymond James Ltd.

The company said it will grant the underwriters an over-allotment option to purchase up to 885,000 additional common shares at the issue price. The overallotment option will be exercisable for a period of 30 days after closing.

Net proceeds are earmarked to fund exploration and development expenditures at the DeLamar Gold and Silver project in southwestern Idaho.

On Tuesday, Integra shares were down 7.5% or $0.26 to $3,19. The shares are currently trading in a 52-week range of $5.16 and $3.13.

Integra acquired the DeLamar Gold and Silver Project from Kinross Gold Corp. [K-TSX,NYSE]  in September, 2017 for $7.5 million in cash and issued a number of shares equal to 9.9% of Integra’s outstanding equity.

The project includes the historic Kinross DeLamar Mine that closed in 1998 due to low precious metal prices. DeLamar produced 1.6 million ounces of gold and 100 million ounces of silver.

Integra set about launching a 20,000-metre drilling program designed primarily to test the down-dip and on-strike extensions of the historic high-grade veins mined between 1889 and 1914.

Historic records report that these veins produced approximately 700,000 ounces of gold and 50 million ounces of silver at a cut-off of plus 15 g/t gold.

As a result of limited exploration work during DeLamar’s operating mine life, Integra has said the potential exists to expand existing mineralization and outline near-surface bulk tonnage resources. The company also said it planned to use modern techniques to explore high grade underground targets.

Integra is also exploring its Florida Mountain Gold and Silver Project, which is located 8.5 kilometres east of Integra’s DeLamar Gold and Silver Project.

The DeLamar and Florida Mountain deposits contain a combined total of 172.4 million tonnes of grade 0.43 g/t gold, 21 g/t silver and 0.70 g/t gold equivalent (AuEq) in the measured and indicated category, amounting to 2.37 million ounces of gold, 116.5 million ounces of silver of 3.9 million ounces of AuEq.

The company has said a pre-feasibility study is on schedule for delivery in the fourth quarter of 2021. In anticipation of that study, the company is conducting various trade-off studies in a bid increased silver recoveries.

Meanwhile, the company recently announced multiple high-grade gold-silver drill results from the Florida Mountain deposit on the DeLamar Project. The company said the results continue to demonstrate high-grade gold-silver mineralization below the Florida Mountain Deposit.

Integra said it believes further drilling at Florida Mountain has the potential to delineate a high-grade resource that could potentially compliment the economically robust bulk-tonnage operation outlined in the company’s 2019 preliminary economic assessment (PEA).

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