INTEGRA ANNOUNCES UPSIZE IN BOUGHT DEAL PUBLIC OFFERING TO C$13 MILLION
- Integra Resources Corp. has entered into an amended agreement with underwriters for a bought deal offering.
- The offering consists of 14,445,000 units priced at C$0.90 per unit, generating gross proceeds of around C$13 million.
- Each unit comprises one common share and half of a common share purchase warrant.
- The warrants entitle holders to purchase one common share at C$1.20 within 36 months.
- Underwriters have the option to purchase an additional 15% of units for market stabilization purposes.
- Net proceeds from the offering will finance exploration and development at the DeLamar Project and Nevada North Project, along with working capital.
- The offering will be qualified through a prospectus supplement in Canadian provinces and territories, excluding Quebec.
- Closing of the offering is anticipated soon.
- None.
The announcement by Integra Resources Corp. regarding the amended agreement with a syndicate of underwriters for a bought deal signifies a strategic move to secure funding for the company's ongoing exploration and development projects. The bought deal, which involves the sale of 14,445,000 units at C$0.90 each, is set to raise approximately C$13 million in gross proceeds. This form of financing is often sought by companies in need of immediate capital, as it guarantees funds upon the deal's closing, with the underwriters committing to purchase the entire offering.
The inclusion of warrants in the units, which allow the holder to purchase additional shares at C$1.20 within a 36-month period, can potentially dilute existing shareholders but also provides an opportunity for investors to increase their stake at a fixed price if the company's share value appreciates. The over-allotment option granted to the underwriters, often referred to as a 'greenshoe' option, enables the management of post-offering share price volatility and can provide additional capital if exercised.
Investors should consider the short-term implications of share dilution against the long-term benefits of the funded projects. The DeLamar and Nevada North Projects' success could significantly influence Integra's market valuation and future growth trajectory. The company's transparent intention to allocate funds towards exploration and development, rather than ambiguous 'general corporate purposes', is a positive indicator for stakeholders focusing on tangible asset development and value creation.
Integra Resources Corp.'s decision to raise capital through a bought deal financing reflects a broader trend in the mining sector where companies often require substantial upfront capital for exploration and development. The mining industry is capital-intensive and the ability to raise funds is critical for the progression of projects like DeLamar and Nevada North. The Offering's success will likely be contingent upon investor confidence in the underlying value of these projects and the company's ability to execute on its strategic objectives.
From a market perspective, the Offering Price of C$0.90 per unit, relative to the company's current trading price and the exercise price of the warrants at C$1.20, may provide insights into the market's valuation of the company's future prospects. The Offering's impact on the stock market will hinge on how it is perceived by investors—in terms of both the immediate dilutive effect and the long-term potential unlocked by the capital raised. It is also indicative of the company's perceived risk, as a lower offering price can signal higher perceived risk or a need for immediate capital.
It is important for investors to monitor the uptake of the prospectus supplement and the subsequent market reaction to gauge broader investor sentiment. The market's response to the closing of the Offering will provide valuable insights into the perceived viability of Integra's projects and the overall health of the mining sector.
The legal framework surrounding Integra Resources Corp.'s financing through a prospectus supplement to its base shelf prospectus is a key aspect of the Offering. The use of a base shelf prospectus is a common method in Canadian securities law that allows companies to meet continuous disclosure requirements and expedite the process of issuing securities. By filing a prospectus supplement, Integra can provide specific details of the Offering to potential investors, which is a regulatory requirement for transparency and investor protection.
Investors should note that the Offering is not being extended to the province of Quebec, which may be due to the province's distinct securities regulations or the company's strategic considerations. The 30-day period following the closing of the Offering, during which the underwriters can purchase additional units to cover over-allotments or for market stabilization, is a standard practice that can help manage market dynamics post-offering.
Understanding the regulatory nuances of such transactions is essential for stakeholders as it can affect the timing, structure and success of the Offering. Compliance with securities law and regulations ensures the legitimacy of the Offering and helps maintain investor confidence in the company's governance practices.
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.
