Canada-based Integra Resources has signed a definitive arrangement agreement to acquire all issued and outstanding shares of Florida Canyon Gold (FCGI).
This transaction is set to establish a diversified gold and silver producer focused on the Great Basin, with an immediate production capacity of approximately 70,000oz of gold equivalent per annum from the Florida Canyon gold mine.
The merger will combine Integra's and FCGI's assets, creating a company with a robust growth pipeline including the DeLamar Project and the Nevada North Project.
As per the terms of the merger deal, FCGI shareholders will receive 0.467 of an Integra common share for each FCGI share held, resulting in Integra and FCGI shareholders owning roughly 60% and 40% of the new entity, respectively.
The exchange ratio values FCGI shares at C$0.69 each, based on Integra's closing price on the TSX Venture Exchange as of 26 July 2024, bringing the total transaction value to nearly C$95m ($131.65m).
Integra also plans to raise an additional C$20m through a bought deal private placement financing of subscription receipts to fund mine optimisation and further development of assets.
The company noted that key cornerstone shareholders including Beedie Investments, Wheaton Precious Metals and GMT Capital are participating in the offering.
This merger aligns with Integra's strategic vision to become a leading US-based mid-tier gold-silver producer, promising significant value creation for shareholders and stakeholders.
Upon completion of the merger, Integra will manage a diversified portfolio of production and development assets within the Great Basin, a top-tier mining jurisdiction.
The Florida Canyon mine will act as the cornerstone production asset, supported by the DeLamar and Nevada North development projects.
This combined portfolio is expected to enable Integra to significantly increase its production profile, aiming to deliver more than 250,000oz of gold equivalent per annum at competitive all-in sustaining costs.
Integra president and CEO Jason Kosec said: “The transaction between Integra and FCGI is a unique opportunity to combine production and cash flows with two complementary high-quality growth projects in the Great Basin, one of the best mining jurisdictions in the world.
“Post transaction Integra will benefit from the currently cash flowing Florida Canyon mine, which provides investors immediate exposure to strong metal prices. DeLamar and Nevada North provide an unmatched growth pipeline that create a pathway to grow Integra from a junior to mid-tier producer in the coming years.
“As DeLamar is advanced through permitting and towards production, it will greatly benefit from the existing operational and technical capabilities of the team operating Florida Canyon.”
