Integra Exercises Option To Acquire Strategic Claims At Delamar Project

Author: Benzinga Newsdesk | February 28, 2024 06:06pm

Integra Resources Corp. ("Integra" or the "Company") (TSXV:ITR) (NYSE:ITRG) is pleased to announce that through its wholly owned subsidiary, DeLamar Mining Company ("DMC"), it has exercised an option (the "Option") to acquire seventeen unpatented claims in the Rich Gulch area ("Rich Gulch") (the "Acquisition"). The Rich Gulch claims are located adjacent to the Florida Mountain Deposit at the DeLamar Project (the "Project" or "DeLamar") in southwestern Idaho.

Rich Gulch is approximately 2 kilometers (1.2 miles) west-southwest of the Florida Mountain Deposit at the base of the Jacobs Gulch stockpile. Control of the Rich Gulch claims at the Project will provide operational flexibility to the Company in future mining and processing scenarios. In the upcoming Feasibility Study, a Development Rock Storage Facility ("DRSF") will be located at Rich Gulch to accommodate mining activities at the adjacent Florida Mountain Deposit and Jacobs Gulch stockpile.

The Acquisition is expected to close on or about March 8, 2024. Upon closing of the Acquisition, DMC will acquire all of the member interests of Rich Gulch, LLC ("Rich Gulch LLC"), the undivided 100% owner of the Rich Gulch claims. The closing of the Acquisition is subject to the satisfaction of certain closing conditions and consents, including, but not limited to, the approval of the TSX Venture Exchange (the "TSXV").

Integra's President, CEO & Director, Jason Kosec commented: "The acquisition of the Rich Gulch claims represents a small, but strategic transaction for Integra. Located immediately adjacent to the Florida Mountain Deposit, Rich Gulch is an efficient location for a DRSF during future mining operations at the Project. Work on an updated mine plan, which includes the use of the Rich Gulch area, is underway and will form the basis of a future Feasibility Study at DeLamar. The Company continues to advance DeLamar through the National Environmental Policy Act permitting process following the submission of the Draft Mine Plan of Operations to the Bureau of Land Management in December 2023. DeLamar is one of the few development projects in the Western United States being advanced towards a construction decision."

Summary Terms of the Acquisition

Under the terms of an option agreement (the "Option Agreement") as between DMC and an arm's length vendor (the "Vendor"), DMC has the Option to purchase all of the member interests of Rich Gulch LLC (the "Interests") pursuant to a membership interest purchase agreement (the "MIPA"), to be entered into as between DMC and the Vendor.  DMC has exercised its option to enter into the MIPA.  Under the terms of the MIPA, DMC will acquire all of the Interests in exchange for US$2,100,000 (the "Purchase Price").  The Purchase Price is to be satisfied through the issuance of common shares in the capital of the Company (the "Shares") based on the five-day volume weighted average price ("VWAP") of the Shares preceding the closing date of the Acquisition (the "Closing Date"). The MIPA provides that, notwithstanding the VWAP calculation, that in no event shall the number of Shares issued to the Vendor for the Interests be less than 840,000.  The MIPA also provides that the parties to the MIPA acknowledge and agree that the regulations of the TSXV with respect to the setting of a floor issue price (that may be different than the VWAP calculation) will apply to the issuance of the Shares.

The Shares to be issued will be subject to a statutory hold period of four months and a day, and a voluntary lock-up from which 25% will be released 45 and 90 days, respectively, from the Closing Date, and 50% released on January 3, 2025.

As consideration for the grant of the Option pursuant to the Option Agreement, DMC paid to the Vendor US$24,000 in cash.

No finder's fees have been paid or are payable in connection with the Acquisition. 

 

Posted In: ITRG TSXV:ITR