Integra increases bought deal offering to $22 million
Integra Resources Corp. [ITR-TSXV; IRRZF-OTCQB] has increased the size of a previously announced bought deal public offering of common shares to approximately $22 million.
The company said it has agreed to grant the underwriters an over-allotment option of up to an additional 15% of the offering at the issue price. If the over-allotment option is exercised in full, the aggregate proceeds are expected to be approximately $25.3 million, the company said.
Net proceeds will be used to fund exploration and a Pre-Feasibility Study at the company’s DeLamar Gold and Silver Project in southwestern Idaho.
On Friday, Integra shares were down 4% or $0.05 to $1.20. The shares are currently trading in a 52-week range of 61 cents and $1.42.
Integra acquired the DeLamar Gold and Silver Project from Kinross Gold Corp. [K-TSX, KGC-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.
Integra outlined plans how it spent $10 million on exploration last year at the DeLamar Project. The plan includes 20,000 metres of drilling 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.
“Drilling at DeLamar continues to show the expansion potential on what is already a huge mineral endowment,” said Integra CEO George Salamis has said.
In a November 14, 2019, press release, Integra said it planned to raise $21.6 million via a $6.6 million non-brokered placement of 5.76 million common shares with Coeur Mining Inc. [CDE-NYSE] at $1.15 per share. The company also said it was planning a concurrent $15 million bought deal offering of common shares at the same price.
The common shares issued to Coeur will be subject to a four-month hold period after the date of issue. Integra and Coeur will also enter into an investor rights agreement that gives Coeur participation rights to maintain a pro rata ownership interest for two years and the right to appoint two members to a newly created five-person technical committee.
The committee will be established to review ongoing exploration and pre-development activities at DeLamar and other mineral properties that may be acquired in the future, so long as Coeur continues to hold at least 3% of Integra’s share capital.
Meanwhile, Raymond James is acting as lead underwriter and sole book runner in the bought deal public offering, which is expected to close on December 4, 2019. The private placement with Coeur is expected to close on November 25, 2019.
Integra recently completed a maiden NI 43-101-compliant resource estimate for its Florida Mountain Gold and Silver Project, also located in southwestern Idaho.
Florida Mountain is located 8.5 km east of DeLamar.
Integra said Florida Mountain hosts an Inferred Mineral Resource of 36.6 million tonnes grading 0.57 g/t gold and 14.12 g/t silver, for a total of 675,000 ounces of gold and 16.6 million ounces of silver, or 871,000 gold equivalent ounces grading 0.74 g/t.
Integra acquired a 100% royalty-free interest in claims that encompass a historic underground mine at the Florida Mountain Project in January, 2018. It bought the claims from Kinross Gold for US$1.6 million.