Integra Resources Corp. (“Integra” or the “Company”) (TSXV: ITR) (NYSE American: ITRG) is pleased to announce that through its wholly-owned subsidiary, DeLamar Mining Company, it has entered into a binding agreement (the “Royalty Agreement”) with Wheaton Precious Metals (Cayman) Co., a wholly-owned subsidiary of Wheaton Precious Metals Corp. (“Wheaton”), pursuant to which Wheaton will acquire a 1.5% net smelter returns royalty (“NSR”) on metal production from all claims of the DeLamar and Florida Mountain Deposit (together “DeLamar” or the “Project”) for an aggregate cash purchase price of US$9.75 million, to be paid in two installments (the “Transaction”). The first installment of US$4.875 million is expected to be received by Integra upon closing of the Transaction. The second installment of US$4.875 million is expected to be received by Integra four months from the date of the first installment. Each installment is subject to certain closing conditions.
The Transaction is expected to close on or about March 5, 2024, pursuant to which Wheaton will pay the first installment of US$4.875 million. The net proceeds from the Transaction will be used for the continued development of DeLamar, including work to support a Feasibility Study and the advancement of the National Environmental Policy Act (“NEPA”) permitting process in the United States (“U.S.”).
Auramet International Inc. has acted as an advisor to the Company with respect to the Transaction.
Integra`s President, CEO & Director, Jason Kosec, commented: “We are very pleased to announce this Transaction with Wheaton, representing a significant endorsement for our flagship DeLamar Project. This royalty sale is an attractive form of financing, particularly given the current capital market conditions. The proceeds from the royalty sale will allow Integra to continue to advance DeLamar, one of only a few projects in the Western U.S. entering the NEPA permitting process. This Transaction significantly strengthens Integra`s position in the Great Basin as a multi-asset developer with a pathway to becoming a leading U.S. focused gold and silver producer.”
Wheaton Precious Metals, President & Chief Executive Officer, Randy Smallwood, commented: “Wheaton is pleased to grow our existing partnership with Integra to support the development of the DeLamar Project, a past-producing, low-cost operation located in a prolific mining jurisdiction. We believe that strong economics, significant upside potential, and Integra management`s track record of success positions the Company well to continue de-risking activities and ultimately advance DeLamar into production, and we are excited to help them achieve their goals.”
Beedie Capital Credit Facility
In connection with the closing of the Transaction, the Company has entered into an amendment (the “Third Supplemental Credit Agreement”) to the credit agreement dated July 28, 2022, as amended (the “Credit Agreement”) with Beedie Investments Ltd. (“Beedie Capital”), pursuant to which, among other items, Beedie Capital has consented to the Transaction and the parties have amended the participation rights afforded to Beedie Capital with respect to future equity financings under the Credit Agreement.
