Connect with us

Hi, what are you looking for?

Smart Success Strategy – Investing and Stock NewsSmart Success Strategy – Investing and Stock News

Editor's Pick

Integra Resources to Merge with Florida Canyon in C$95 Million Deal

Integra Resources (TSXV:ITR,NYSEAMERICAN:ITRG) and Florida Canyon Gold (TSXV:FCGV,OTC Pink:FCGVF) announced plans to merge, saying they want to create a leading gold and silver producer in the US’ Great Basin.

The agreement involves Integra acquiring all of Florida Canyon’s outstanding shares. In return, Florida Canyon shareholders will receive 0.467 of an Integra share for each Florida Canyon share held. According to the companies, this exchange ratio values Florida Canyon shares at C$0.69 each, totaling approximately C$95 million.

The transaction was announced on Monday (July 29), and is expected to close in November. At that point, Integra shareholders will own about 60 percent of the combined entity, while Florida Canyon shareholders will hold 40 percent.

The merger is set to establish a diversified gold and silver producer with annual production of approximately 70,000 gold equivalent ounces from the Nevada-based Florida Canyon gold mine. The transaction will also integrate high-quality development projects, including the DeLamar project in Idaho and the Nevada North project in Nevada.

Last year, Florida Canyon produced around 71,000 gold equivalent ounces at net cash costs of US$1,368 per ounce and all-in sustaining costs of US$1,654 per ounce. A technical report published by the company in June forecasts a seven year mine life with annual output of 71,000 ounces of gold and 40,000 ounces of silver in the form of doré.

A 2022 feasibility study for the DeLamar gold-silver heap leach project in Idaho projects an eight year mine life and production of 136,000 gold equivalent ounces annually. Nevada North, comprising the Wildcat and Mountain View deposits in Nevada, is expected to produce 80,000 gold equivalent ounces annually over a 13 year mine life.

“This transaction represents a monumental step towards Integra’s long-term vision of building an industry leading USA focused mid-tier gold producer,” said Integra President and CEO Jason Kosec in a press release.

He also commented on Nevada North’s proximity to Florida Canyon. The assets are located approximately 40 miles apart, and Kosec said the companies envision the development of a ’20+ year mining complex.’

Florida Canyon began trading on the TSXV on July 16 following a spinout of Argonaut Gold’s US and Mexican operations. Argonaut’s Canadian operations were acquired by Alamos Gold (TSX:AGI,NYSE:AGI) on July 12.

Shares of Integra and Florida Canyon ended the day down on the TSXV, falling 9.49 percent 12.7 percent, respectively.

Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.

This post appeared first on investingnews.com
Enter Your Information Below To Receive Latest News, And Articles.



    Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

    You May Also Like

    Editor's Pick

    The energy revolution is here to stay, and electric vehicles (EVs) have become part of the mainstream narrative. Despite geopolitical tensions and uncertainty, the...

    Editor's Pick

    Overview Mexico’s Sinaloa state hosts a number of prolific silver and gold mines, including McEwen Mining’s (TSX:MUX) El Gallo Complex, Americas Gold and Silver’s...

    Editor's Pick

    Uranium is an important energy sector commodity, and its rising value has attracted investor interest. 2023 has seen uranium prices solidly above the important...

    Investing

    A new survey shows that the presidential race between former President Donald Trump and President Biden is thin, but Biden faces a deficit in...

    Disclaimer: smartsuccessstrategy.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.


    Copyright © 2024 smartsuccessstrategy.com