Integra Exercises Option to Acquire Strategic Claims at Delamar Project
INTEGRA EXERCISES OPTION TO ACQUIRE STRATEGIC
CLAIMS AT DELAMAR PROJECT
TSXV: ITR; NYSE American: ITRG
www.integraresources.com
VANCOUVER, BC
,
Feb. 28, 2024
/CNW/ -
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 ("DMC"), it has
exercised an option (the "Option") to acquire seventeen unpatented claims in the Rich Gulch area ("Rich Gulch") (the "Acquisition").
The Rich Gulch claims are located adjacent to the Florida Mountain Deposit at the DeLamar Project (the "Project" or "DeLamar") in
southwestern
Idaho
.
Rich Gulch is approximately 2 kilometers (1.2 miles) west-southwest of the Florida Mountain Deposit at the base of the Jacobs
Gulch stockpile. Control of the Rich Gulch claims at the Project will provide operational flexibility to the Company in future mining and
processing scenarios. In the upcoming Feasibility Study, a Development Rock Storage Facility ("DRSF") will be located at Rich
Gulch to accommodate mining activities at the adjacent Florida Mountain Deposit and Jacobs Gulch stockpile.
The Acquisition is expected to close on or about
March 8, 2024
. Upon closing of the Acquisition, DMC will acquire all of the member
interests of Rich Gulch, LLC ("Rich Gulch LLC"), the undivided 100% owner of the Rich Gulch claims. The closing of the Acquisition
is subject to the satisfaction of certain closing conditions and consents, including, but not limited to, the approval of the TSX Venture
Exchange (the "TSXV").
Integra's President, CEO & Director,
Jason Kosec
commented:
"The acquisition of the Rich Gulch claims represents a small,
but strategic transaction for Integra. Located immediately adjacent to the Florida Mountain Deposit, Rich Gulch is an efficient
location for a DRSF during future mining operations at the Project. Work on an updated mine plan, which includes the use of the
Rich Gulch area, is underway and will form the basis of a future Feasibility Study at DeLamar. The Company continues to advance
DeLamar through the National Environmental Policy Act permitting process following the submission of the Draft Mine Plan of
Operations to the Bureau of Land Management in
December 2023
. DeLamar is one of the few development projects in the
Western
United States
being advanced towards a construction decision."
Summary Terms of the Acquisition
Under the terms of an option agreement (the "Option Agreement") as between DMC and an arm's length vendor (the "Vendor"),
DMC has the Option to purchase all of the member interests of Rich Gulch LLC (the "Interests") pursuant to a membership interest
purchase agreement (the "MIPA"), to be entered into as between DMC and the Vendor. DMC has exercised its option to enter into
the MIPA. Under the terms of the MIPA, DMC will acquire all of the Interests in exchange for
US$2,100,000
(the "Purchase
Price"). The Purchase Price is to be satisfied through the issuance of common shares in the capital of the Company (the "Shares")
based on the five-day volume weighted average price ("VWAP") of the Shares preceding the closing date of the Acquisition (the
"Closing Date"). The MIPA provides that, notwithstanding the VWAP calculation, that in no event shall the number of Shares issued
to the Vendor for the Interests be less than 840,000. The MIPA also provides that the parties to the MIPA acknowledge and agree
that the regulations of the TSXV with respect to the setting of a floor issue price (that may be different than the VWAP calculation)
will apply to the issuance of the Shares.
The Shares to be issued will be subject to a statutory hold period of four months and a day, and a voluntary lock-up from which 25%
will be released 45 and 90 days, respectively, from the Closing Date, and 50% released on
January 3, 2025
.
As consideration for the grant of the Option pursuant to the Option Agreement, DMC paid to the Vendor
US$24,000
in cash.
No finder's fees have been paid or are payable in connection with the Acquisition.
Qualified Person
The scientific and technical information contained in this news release has been reviewed and approved by Raphael Dutaut, Ph.D
(P.Geo), Integra's Vice President, Exploration. Mr. Dutaut is a "qualified person" as defined in National Instrument 43- 101 –
Standards of Disclosure for Mineral Projects
("NI 43-101").
DeLamar Project Overview
The past producing DeLamar Project, which includes the adjacent
DeLamar and Florida Mountain
gold and silver deposits, is
located in
Owyhee County
in southwest
Idaho
. Since acquiring the Project in 2017, the Company has demonstrated significant
resource growth and conversion while demonstrating robust economic studies in its maiden Preliminary Economic Assessment and
Preliminary Feasibility Study. An independent technical report for the DeLamar Project has been prepared in accordance with the
requirements of NI 43-101 and is available under the Company's profile at
www.sedarplus.ca
About Integra Resources
Integra is one of the largest precious metals exploration and development companies in the Great Basin of the
Western USA
.
Integra is currently focused on advancing its two flagship oxide heap leach projects: the past producing DeLamar Project located in
southwestern
Idaho
and the Nevada North Project, comprised of the Wildcat and Mountain View deposits, located in northwestern
Nevada
. The Company also holds a portfolio of highly prospective early-stage exploration projects in
Idaho
,
Nevada
, and
Arizona
.
Integra's long-term vision is to become a leading
USA
focused mid-tier gold and silver producer.
ON BEHALF OF THE BOARD OF DIRECTORS
Jason Kosec
President, CEO and Director
Forward Looking and Other Cautionary Statements
Certain information set forth in this news release contains "forward
looking statements" and "forward
looking information" within the
meaning of applicable Canadian securities legislation and applicable
United States
securities laws (referred to herein as forward
looking statements). Except for statements of historical fact, certain information contained herein constitutes forward
looking
statements which includes, but is not limited to, statements with respect to: closing of the Acquisition; the future financial or
operating performance of the Company and the Company's mineral properties and project portfolio; the results from work
performed to date; the estimation of mineral resources and reserves; the realization of mineral resource and reserve estimates; the
development, operational and economic results of technical reports on mineral properties referenced herein; magnitude or quality of
mineral deposits; the anticipated advancement of the Company' mineral properties and project portfolios; exploration expenditures,
costs and timing of the development of new deposits; underground exploration potential; costs and timing of future exploration; the
completion and timing of future development studies; estimates of metallurgical recovery rates; exploration prospects of mineral
properties; requirements for additional capital; the future price of metals; government regulation of mining operations; environmental
risks; the timing and possible outcome of pending regulatory matters; the realization of the expected economics of mineral
properties; future growth potential of mineral properties; and future development plans.
Forward-looking statements are often identified by the use of words such as "may", "will", "could", "would", "anticipate", "believe",
"expect", "intend", "potential", "estimate", "budget", "scheduled", "plans", "planned", "forecasts", "goals" and similar expressions.
Forward-looking statements are based on a number of factors and assumptions made by management and considered reasonable
at the time such information is provided. Assumptions and factors include: closing of the Acquisition including the timely receipt of all
necessary approvals and consents, as applicable; the Company's ability to complete its planned exploration programs; the absence
of adverse conditions at mineral properties; no unforeseen operational delays; no material delays in obtaining necessary permits;
the price of gold remaining at levels that render mineral properties economic; the Company's ability to continue raising necessary
capital to finance operations; and the ability to realize on the mineral resource and reserve estimates. Forward
looking statements
necessarily involve known and unknown risks and uncertainties, which may cause actual performance and financial results in future
periods to differ materially from any projections of future performance or result expressed or implied by such forward
looking
statements. These risks and uncertainties include, but are not limited to: risks related to the timely receipt of all necessary
approvals and consents, as applicable, in connection with the Acquisition; integration risks; general business, economic and
competitive uncertainties; the actual results of current and future exploration activities; conclusions of economic evaluations; meeting
various expected cost estimates; benefits of certain technology usage; changes in project parameters and/or economic
assessments as plans continue to be refined; future prices of metals; possible variations of mineral grade or recovery rates; the risk
that actual costs may exceed estimated costs; geological, mining and exploration technical problems; failure of plant, equipment or
processes to operate as anticipated; accidents, labour disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing; the speculative nature of mineral exploration and development (including the risks of obtaining
necessary licenses, permits and approvals from government authorities); title to properties; and management's ability to anticipate
and manage the foregoing factors and risks. Although the Company has attempted to identify important factors that could cause
actual actions, events or results to differ materially from those described in the forward-looking statements, there may be other
factors that cause actions, events or results not to be as anticipated, estimated or intended. Readers are advised to study and
consider risk factors disclosed in Integra's annual report on Form 20-F dated
March 17, 2023
for the fiscal year ended
December
31, 2022
, and Millennial Precious Metals Corp's management's discussion and analysis dated
April 28, 2023
for the fiscal year
ended
December 31, 2022
.
There can be no assurance that forward
looking statements will prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements. The Company undertakes no obligation to update forward
looking
statements if circumstances or management's estimates or opinions should change except as required by applicable securities laws.
The forward-looking statements contained herein are presented for the purposes of assisting investors in understanding the
Company's plans, objectives and goals, and may not be appropriate for other purposes. Forward-looking statements are not
guarantees of future performance and the reader is cautioned not to place undue reliance on forward
looking statements.
Cautionary Note for U.S. Investors Concerning Mineral Resources and Reserves
NI 43-101 is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes
of scientific and technical information concerning mineral projects. Technical disclosure contained in this news release has been
prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System.
These standards differ from the requirements of the U.S. Securities and Exchange Commission ("SEC") and resource information
contained in this news release may not be comparable to similar information disclosed by domestic
United States
companies subject
to the SEC's reporting and disclosure requirements.
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 release.
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SOURCE
Integra Resources Corp.
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For further information:
Corporate Inquiries: [email protected], Company website: www.integraresources.com, Office
phone: 1 (604) 416-0576
CO: Integra Resources Corp.
CNW 16:20e 28-FEB-24