INTEGRA ANNOUNCES CLOSING OF ROYALTY TRANSACTION WITH WHEATON PRECIOUS METALS AND RECEIPT OF FIRST CASH INSTALLMENT OF US$4.875 MILLION

Rhea-AI Summary

Integra Resources Corp. closes a royalty transaction with Wheaton Precious Metals, acquiring a 1.5% NSR on metal production from the DeLamar Project for US$9.75 million. The proceeds will fund the development of DeLamar towards a construction decision.

Insights

Financial Analyst

The closure of the royalty transaction between Integra Resources Corp. and Wheaton Precious Metals represents a strategic financial move for Integra, particularly in terms of capital allocation and project funding. The infusion of US$9.75 million in exchange for a 1.5% net smelter returns royalty on the DeLamar Project provides Integra with immediate liquidity, which is critical to support its ongoing developmental activities, including the Feasibility Study and the National Environmental Policy Act permitting process. This transaction is indicative of the company's ability to secure funding without diluting existing shareholders, a positive signal to the market. However, it is also important to consider the long-term cost of this capital, as the NSR means that Integra will yield a portion of its future revenues from the project to Wheaton, potentially impacting profitability once the project is operational.

Mining Sector Analyst

Integra's DeLamar Project, with its historical production and significant resource growth since acquisition, has reached a pivotal stage in its development lifecycle. The endorsement by Wheaton, a major player in the precious metals streaming and royalty space, not only provides a capital boost but also serves as a vote of confidence in the project's quality and the management team's capability. This transaction could potentially accelerate Integra's timeline towards a construction decision, which is a critical step in the transition from exploration to production. The market often reacts favorably to such advancements, as they reduce project risk and enhance the asset's value proposition. However, the royalty agreement does commit a portion of future revenues, which investors must weigh against the immediate benefits of capital infusion and project progression.

Environmental Policy Analyst

The progression of the National Environmental Policy Act (NEPA) permitting process, as mentioned, is an essential factor for Integra's DeLamar Project, especially considering the stringent environmental regulations in the U.S. The successful completion of this process would be a significant milestone, as it would address investor concerns regarding environmental compliance and project viability. The capital from the royalty transaction earmarked for this purpose suggests that Integra is prioritizing regulatory adherence, which is crucial for the project's longevity and social license to operate. The NEPA process can often be lengthy and complex and its successful navigation could set a precedent for Integra's operational efficiency and risk management in the eyes of investors and stakeholders.

TSXV: ITR; NYSE American: ITRG
www.integraresources.com

VANCOUVER, BC, March 7, 2024 /PRNewswire/ - Integra Resources Corp. ("Integra" or the "Company") (TSXV: ITR) (NYSE American: ITRG) is pleased to announce that is has closed the previously announced royalty transaction between its wholly-owned subsidiary, DeLamar Mining Company, and Wheaton Precious Metals (Cayman) Co., a wholly-owned subsidiary of Wheaton Precious Metals Corp. ("Wheaton"), pursuant to which Wheaton acquired a 1.5% net smelter returns royalty ("NSR") on metal production from all claims of the DeLamar and Florida Mountain Deposit (together "DeLamar" or the "Project") for an aggregate cash purchase price of US$9.75 million, to be paid in two installments (the "Transaction"). Integra has received the first installment of US$4.875 million and expects to receive the second installment of US$4.875 million in approximately four months, subject to certain closing conditions. The net proceeds from the Transaction will be used for the continued development of DeLamar, including work to support a Feasibility Study and the advancement of the National Environmental Policy Act permitting process in the United States ("U.S.").

Integra's President, CEO & Director, Jason Kosec, commented: "We are pleased to close the royalty transaction with Wheaton and receive the first installment payment of US$4.875 million, which will be used directly for the advancement of DeLamar toward a construction decision. The Transaction represents a significant endorsement for both the quality of the DeLamar project and the team at Integra. We would like to thank Wheaton for the continued support in helping us achieve our ultimate goal of becoming a leading U.S. focused gold and silver producer."

Qualified Person

The scientific and technical information contained in this news release has been reviewed and approved by Raphael Dutaut, Ph.D (P.Geo), Integra's Vice President, Exploration. Mr. Dutaut is a "qualified person" as defined in National Instrument 43- 101 – Standards of Disclosure for Mineral Projects ("NI 43-101").

DeLamar Project Overview

The past producing DeLamar Project, which includes the adjacent DeLamar and Florida Mountain gold and silver deposits, is located in Owyhee County in southwest Idaho. Since acquiring the Project in 2017, the Company has demonstrated significant resource growth and conversion while demonstrating robust economic studies in its maiden Preliminary Economic Assessment and Preliminary Feasibility Study. An independent technical report for the DeLamar Project has been prepared in accordance with the requirements of NI 43-101 and is available under the Company's profile at www.sedarplus.ca

About Integra Resources

Integra is one of the largest precious metals exploration and development companies in the Great Basin of the Western U.S. Integra is currently focused on advancing its two flagship oxide heap leach projects: the past producing DeLamar Project located in southwestern Idaho and the Nevada North Project, comprised of the Wildcat and Mountain View deposits, located in northwestern Nevada. The Company also holds a portfolio of highly prospective early-stage exploration projects in Idaho, Nevada, and Arizona. Integra's long-term vision is to become a leading U.S. focused mid-tier gold and silver producer.

ON BEHALF OF THE BOARD OF DIRECTORS

Jason Kosec
President, CEO and Director

Forward Looking and Other Cautionary Statements

Certain information set forth in this news release contains "forward‐looking statements" and "forward‐looking information" within the meaning of applicable Canadian securities legislation and applicable United States securities laws (referred to herein as forward‐looking statements). Except for statements of historical fact, certain information contained herein constitutes forward‐looking statements which includes, but is not limited to, statements with respect to: closing of the second installment of the Transaction; advancement of the Project towards a construction decision; the future financial or operating performance of the Company and the Company's mineral properties and project portfolio; the results from work performed to date; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the development, operational and economic results of technical reports on mineral properties referenced herein; magnitude or quality of mineral deposits; the anticipated advancement of the Company' mineral properties and project portfolios; exploration expenditures, costs and timing of the development of new deposits; underground exploration potential; costs and timing of future exploration; the completion and timing of future development studies; estimates of metallurgical recovery rates; exploration prospects of mineral properties; requirements for additional capital; the future price of metals; government regulation of mining operations; environmental risks; the timing and possible outcome of pending regulatory matters; the realization of the expected economics of mineral properties; future growth potential of mineral properties; and future development plans.

Forward-looking statements are often identified by the use of words such as "may", "will", "could", "would", "anticipate", "believe", "expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions. Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable at the time such information is provided. Assumptions and factors include: the Company's ability to satisfy the closing conditions to the Transaction; the Company's ability to complete its planned exploration programs; the absence of adverse conditions at mineral properties; no unforeseen operational delays; no material delays in obtaining necessary permits; the price of gold remaining at levels that render mineral properties economic; the Company's ability to continue raising necessary capital to finance operations; and the ability to realize on the mineral resource and reserve estimates. Forward‐looking statements necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or result expressed or implied by such forward‐looking statements. These risks and uncertainties include, but are not limited to: integration risks; general business, economic and competitive uncertainties; the actual results of current and future exploration activities; conclusions of economic evaluations; meeting various expected cost estimates; benefits of certain technology usage; changes in project parameters and/or economic assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; the risk that actual costs may exceed estimated costs; geological, mining and exploration technical problems; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing; the speculative nature of mineral exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government authorities); title to properties; and management's ability to anticipate and manage the foregoing factors and risks. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers are advised to study and consider risk factors disclosed in Integra's annual report on Form 20-F dated March 17, 2023 for the fiscal year ended December 31, 2022, and Millennial Precious Metals Corp's management's discussion and analysis dated April 28, 2023 for the fiscal year ended December 31, 2022.

There can be no assurance that forward‐looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward‐looking statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws. The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the Company's plans, objectives and goals, and may not be appropriate for other purposes. Forward-looking statements are not guarantees of future performance and the reader is cautioned not to place undue reliance on forward‐looking statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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SOURCE Integra Resources Corp.

FAQ

What is the significance of the royalty transaction between Integra Resources Corp. and Wheaton Precious Metals?

The royalty transaction involves Wheaton acquiring a 1.5% NSR on metal production from the DeLamar Project for US$9.75 million. This funding will support the development of DeLamar towards a construction decision.

Where is the DeLamar Project located?

The DeLamar Project, including the DeLamar and Florida Mountain deposits, is located in Owyhee County in southwest Idaho.

Who is the qualified person overseeing the scientific and technical information of the DeLamar Project?

Raphael Dutaut, Ph.D (P.Geo), Integra's Vice President, Exploration, is the qualified person overseeing the scientific and technical information of the DeLamar Project.

What has Integra Resources Corp. achieved since acquiring the DeLamar Project in 2017?

Since acquiring the DeLamar Project in 2017, Integra has demonstrated significant resource growth and conversion, as well as robust economic studies in its maiden Preliminary Economic Assessment and Preliminary Feasibility Study.

Where can the independent technical report for the DeLamar Project be accessed?

The independent technical report for the DeLamar Project, prepared in accordance with NI 43-101 requirements, is available under the Company's profile at www.sedarplus.ca.