INTEGRA CLOSES UPSIZED BOUGHT DEAL OFFERING WITH FULL EXERCISE OF OVER-ALLOTMENT OPTION FOR GROSS PROCEEDS OF APPROXIMATELY C$15 MILLION
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Insights
The completion of Integra Resources Corp's bought deal public offering represents a significant capital infusion for the company, amounting to C$14,950,575. This successful capital raise, which includes the full exercise of the over-allotment option, indicates strong market confidence in Integra's prospects and business strategy. The support from strategic corporate entities and existing shareholders like Beedie Investments Ltd. and Wheaton Precious Metals Corp. further solidifies this viewpoint.
The decision to invest the net proceeds into exploration and development expenditures at the DeLamar Project and the Nevada North Project suggests a forward-looking approach to resource expansion and operational growth. Given the current market conditions for precious metals, this could potentially increase the company's resource base and future production capabilities, which is often viewed favorably by investors seeking growth opportunities.
From a financial perspective, the offering's structure, which includes common shares and warrants, can be seen as a strategic move to balance immediate capital needs with future financing flexibility. The warrants, exercisable at C$1.20, could provide an additional capital influx if the company's share price exceeds this exercise price within the 36-month period. However, this could also lead to future dilution of the share value for current shareholders if exercised in large numbers.
The underwriting agreement terms, including a 6% cash fee to the underwriters (3% for the president's list purchasers), are within the normal range for such transactions, suggesting that the company managed to negotiate standard market terms for the deal.
Integra Resources Corp's focus on the exploration and development of the DeLamar Project and the Nevada North Project is indicative of the company's strategic priorities within the mining sector. These projects, presumably rich in precious metals, are likely to be closely monitored by industry experts for their potential to contribute to the global supply, especially in a market where demand for precious metals is influenced by economic factors such as inflation and currency devaluation. The company's ability to successfully develop these projects could have a significant impact on its competitive positioning within the mining industry.
TSXV: ITR; NYSE American: ITRG
www.integraresources.com
Each Unit consists of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant (each whole Common Share purchase warrant, a "Warrant"). Each Warrant entitles the holder thereof to purchase one Common Share at an exercise price of
The Offering includes an investment made into Integra from a new strategic corporate entity as well as support from current shareholders Beedie Investments Ltd. and Wheaton Precious Metals Corp.
The Offering was completed pursuant to an underwriting agreement dated March 7, 2024 entered into among the Company and a syndicate of underwriters led by Cormark Securities Inc., and including BMO Nesbitt Burns Inc., Desjardins Securities Inc., Eight Capital, PI Financial Corp., Raymond James Ltd. and Stifel Nicolaus Canada Inc. (collectively, the "Underwriters"). The Company paid the Underwriters a cash fee of
The Company intends to use the net proceeds from the Offering to fund exploration and development expenditures at the DeLamar Project, the Nevada North Project, and for working capital and general corporate purposes.
The Offering was conducted by way of a prospectus supplement dated March 7, 2024 (the "Prospectus Supplement") to the Company's existing base shelf prospectus dated January 16, 2024 (the "Base Shelf Prospectus") in each of the provinces and territories of
The Offering remains subject to the final approval of the TSX Venture Exchange.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
The Company is pleased to host a corporate update webinar on Thursday, March 14, 2024 at 11:00am PST/2:00pm EST. The webinar will feature a presentation from Integra's President, CEO and Director, Jason Kosec, as well as a live Q&A session. A recording of the webinar will be available on Integra's corporate website. To register for the webinar, please use the following link: https://us02web.zoom.us/webinar/register/WN_SY-uNxuWR12DXx-9Y8kpSA
Integra is one of the largest precious metals exploration and development companies in the Great Basin of the
ON BEHALF OF THE BOARD OF DIRECTORS
Jason Kosec
President, CEO and Director
Some statements ("forward-looking statements") in this news release contain forward-looking information concerning plans related to Integra's business and other matters that may occur in the future, made as of the date of this news release including, but not limited to, the Offering; the use of proceeds thereof. Forward-looking statements are subject to a variety of known and unknown risks, uncertainties and other factors which could cause actual events or results to differ from those expressed or implied by the forward-looking statements. Such factors include, among others, risks related to legislative and/or regulatory changes; actual results and timing of exploration and development, mining, environmental services and remediation and reclamation activities; future prices of silver, gold, lead, zinc and other commodities; possible variations in mineral resources, grade or recovery rates; failure of plant, equipment or processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; Native American rights and title; continued capitalization and commercial viability; global economic conditions; competition; and delays in obtaining governmental approvals or financing or in the completion of development activities. Forward-looking statements are based on certain assumptions that management believes are reasonable at the time they are made. In making the forward-looking statements included in this news release, Integra has applied several material assumptions, including, but not limited to, the assumptions; that Integra will be able to raise additional capital as necessary, that the proposed exploration and development activities will proceed as planned, and that market fundamentals will result in sustained silver, gold, lead and zinc demand and prices. There can be no assurance that forward-looking statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Integra expressly disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as otherwise required by applicable securities legislation.
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 news release.
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SOURCE Integra Resources Corp.
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