Canadian precious metal producer Integra Resources has completed the acquisition of Florida Canyon Gold (FCGI) through a court-approved plan of arrangement under the Canada Business Corporations Act.
Integra secured all issued and outstanding common shares of FCGI under the deal. The transaction followed a definitive arrangement agreement signed in July this year.
Consequently, FCGI has become a wholly owned subsidiary of Integra and its shareholders received 0.46 of an Integra common share for each FCGI share they held, resulting in the issuance of approximately 65.21 million new Integra shares.
With the transaction’s closure, Integra met the escrow release conditions for 14.9 million subscription receipts issued on 21 August 2024, raising C$19.4m.
These funds will support mine optimisation at the Florida Canyon Mine, advancement of the DeLamar Project, the Nevada North Project and general corporate purposes.
The Board of Integra, led by executive chairman George Salamis, welcomes Janet Yang and Ian Atkinson, former FCGI directors, as new members.
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Integra CEO and director Jason Kosec said: “We are thrilled to announce the completion of this transformational transaction for Integra. I would like to welcome the new team members, board members and shareholders to Integra. The Florida Canyon Mine will play a crucial role in realising our long-term vision of becoming a leading mid-tier precious metals producer.
“Today marks the beginning of a new chapter for Integra as a Great Basin-focused precious metals producer with a built-in growth pipeline, peer-leading resource base, bolstered balance sheet, and strong support from our key strategic shareholders including Wheaton Precious Metals, Beedie Capital and Alamos Gold.”
The subscription receipts have now converted into Integra shares, which are under a statutory hold period until 22 December 2024.
Integra also announced a second advance of $5m from its convertible facility with Beedie Capital, with a conversion price of C$1.6875 per Integra share. This funding will further finance the exploration and development of the DeLamar and Nevada North Projects.
Stifel and Trinity Advisors served as financial advisors, and Cassels Brock & Blackwell as legal counsel to Integra.
Cormark Securities served as financial advisors to FCGI, with Bennett Jones and HBH Strategic Advisors providing legal counsel for the transaction.
