INTEGRA ANNOUNCES C$10 MILLION BOUGHT DEAL PUBLIC OFFERING
- Integra Resources Corp. has entered into an agreement with underwriters for a bought deal offering of 11,112,000 units at a price of C$0.90 per unit, totaling approximately C$10 million.
- Each unit includes one common share and one-half of a common share purchase warrant, with the warrant allowing the purchase of one common share at C$1.20 within 36 months.
- The underwriters have the option to purchase additional units equal to 15% of the offering for market stabilization and to cover over-allotments.
- The net proceeds from the offering will be used for exploration and development at the DeLamar Project, the Nevada North Project, and general corporate purposes.
- The offering will be qualified by a prospectus supplement to the existing base shelf prospectus in Canada, excluding Quebec.
- Closing of the offering is expected soon.
- None.
The announcement by Integra Resources Corp. regarding the 'bought deal' financing represents a significant capital infusion for the company, which is a critical component for its growth and expansion strategy. The gross proceeds of approximately C$10 million, with the potential for an additional 15% in over-allotments, provide the company with a substantial amount of capital to allocate towards its exploration and development projects. The inclusion of warrants in the deal structure could potentially dilute existing shareholders but also serves as an incentive for investors, as it allows them to purchase additional shares at a set price in the future, potentially below market value if the company performs well.
It is important to note that the offering price of C$0.90 per unit represents a snapshot of the company's valuation at the time of the deal. Investors and stakeholders should compare this price to the current market price and historical performance to assess the attractiveness of the deal. The exercise price of the warrants (C$1.20) is another key figure, as it indicates the level of confidence the underwriters and the company have in the future stock price appreciation.
The intended use of proceeds for specific projects like the DeLamar Project and the Nevada North Project gives investors a clear direction on the company's strategic priorities. However, the allocation of funds towards 'working capital and general corporate purposes' is less specific and stakeholders should look for further details on how these funds will be used to drive shareholder value.
Integra Resources Corp.'s decision to raise capital through a 'bought deal' can be seen as a strategic move to accelerate its exploration and development activities. This is indicative of a bullish outlook from the company on the prospects of its projects. The market's reaction to such news typically depends on investor sentiment regarding the company's growth potential and the terms of the deal. The fact that the underwriters have committed to buying the shares upfront suggests confidence in the company's value proposition.
It's also noteworthy that the company has excluded Quebec from the offering, which could be due to regulatory, strategic, or financial considerations. This exclusion could influence the regional market dynamics and investor participation. The market will also be observing the uptake of the over-allotment option as an indicator of demand and confidence in the company's future prospects.
As the mining sector is capital intensive, the success of such financings is often a bellwether for a company's operational progress and financial health. The market will likely monitor the deployment of the raised capital into the stated projects and evaluate the potential impact on the company's production capabilities and resource estimates, which in turn could influence the company's stock performance.
The financing transaction by Integra Resources Corp. is structured to comply with securities regulations, as evidenced by the reference to the prospectus supplement and the base shelf prospectus. The legal framework for such transactions is designed to ensure that investors are provided with sufficient information to make informed decisions. The availability of the prospectus supplement on SEDAR+ indicates transparency and adherence to disclosure obligations, which is crucial for investor trust.
Additionally, the 30-day period for the underwriters to purchase additional units for market stabilization and over-allotment coverage is a common feature in such deals, known as the 'greenshoe option'. This legal mechanism allows for better market liquidity and price stability post-offering, which can be beneficial for both the company and its investors. Stakeholders should be aware of the implications of these legal provisions on the overall transaction structure and the company's capital market activities.
TSXV: ITR; NYSE American: ITRG
www.integraresources.com
Each Unit will consist 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 will entitle the holder thereof to purchase one Common Share at an exercise price of
The Underwriters also have an option to purchase that number of additional Units equal to
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 will be qualified by way of a prospectus supplement (the "Prospectus Supplement") to the Company's existing base shelf prospectus (the "Base Shelf Prospectus") in each of the provinces and territories of
Closing is expected on or about March 13, 2024 and is subject to TSX Venture Exchange (the "TSXV") and other necessary regulatory approvals. The Company will also use its best efforts to list the Warrants on the TSXV.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in
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 closing of the Offering and the use of proceeds thereof; and listing of the Warrants on the TSXV. 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 regulatory approval of the Offering and 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 all regulatory approvals of the Offering will be obtained and all conditions precedent to completion of the Offering will be fulfilled in a timely manner; 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.
