Integra set to acquire Florida Canyon Gold
Integra Resources Corp. [ITR-TSXV, ITRG-NYSE] said Monday it has agreed to acquire all of the issued and outstanding shares of Florida Canyon Gold Inc. [FCGV-TSXV] via a court approved plan of arrangement.
The transaction will create a diversified, Great Basin-focused gold and silver producer with immediate gold production of 70,000 ounces of gold equivalent (AuEq) annually from the Florida Canyon Gold Mine in Nevada. That operation will be coupled with a built-in-growth pipeline of high-quality development stage assets, including the DeLamar Project in southwestern Idaho and Nevada Project in northwestern Nevada.
Under the terms of the transaction, Florida Canyon shareholders will receive 0.467 of a common share of Integra for each share of Florida Canyon. The exchange ratio implies a consideration of $0.69 per Florida Canyon share based on the trading price of Integra shares on July 26, 2024, which closed at $1.47. The shares currently trade in a 52-week range of $1.51 and 86 cents.
The exchange ration implies a transaction value of $95 million.
Florida Canyon Gold shares closed at 63 cents on July 26, 3024, and trade in a 52-week range of 81 cents and 47 cents.
Florida Canyon is a proven open-pit mining operation located in Nevada, with solid operating performance in recent years due to enhancements to personnel and operational practises. The operation produced 71,000 ounces of AuEq in 2023 at an all-in-sustaining-cost of US$1,654 ounces respectively.
A 2024 NI 43-101-compliant technical report for Florida Canyon demonstrated a 7.0-year mine life (non including residual leaching), producing an average of 70,000 ounces of AuEq annually, generating an after-tax net present value 5.0% of US$128 million
Integra acquired the DeLamar Gold and Silver Project from Kinross Gold Corp. [K-] 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.
A 2022 pre-feasibility study for DeLamar demonstrated an 8.0-year mine life, producing an average of 136,000 ounces of AuEq annually. Integra said DeLamar is one of the few gold silver development projects in the Western U.S. that will be actively advanced through the National Environmental Protection Agency mine permitting process, demonstrating the significant scarcity of value of the project. A mine plan of operations was submitted and deemed complete by the U.S. Bureau of Land Management in June, 2024.
Another key asset is Nevada North, which consists of the Wildcat and Mountain View deposits located in northwestern Nevada. The Wildcat deposit is located approximately 55 kilometres from Florida Canyon. A 2023 preliminary economic assessment for Nevada North demonstrated a 13-year-mine life, producing an average of 80,000 ounces of AuEq annually.
“The close proximity of Florida Canyon, DeLamar, and Nevada North has the potential to generate substantial synergies, paving the way for accelerated growth and operational efficiencies,’’ said Florida Canyon interim CEO Audra Walsh.