Integra Resources to Acquire Delamar Project from Kinross GOLD
82, Richmond St East, Suite 200
Toronto, Ontario, Canada
M5C 1P1
Email: [email protected]
FOR IMMEDIATE RELEASE CSE:ITR
September 19, 2017 www.integraresources.com
INTEGRA RESOURCES TO ACQUIRE DELAMAR PROJECT FROM KINROSS GOLD
Toronto, Ontario – Integra Resources Corp. (CSE:ITR) (the “Company” or “Integra”) is pleased to
announce that it will acquire 100% of the DeLamar Gold and Silver Project from a wholly‐owned
subsidiary of Kinross Gold Corporation (“Kinross”) for C$7.5 million in cash and the issuance of Integra
shares that is equal to 9.9% of all of the issued and outstanding Integra shares upon closing of the
transaction. The DeLamar project is subject to a retained variable net smelter return (“NSR”) royalty
payable to Kinross. Concurrent to the DeLamar transaction, Integra has signed binding letters of intent
(“LOIs” with two private entities to acquire patented claims in the past‐producing Florida Mountain Gold
and Silver Project (“Florida Mountain”), which borders DeLamar to the east.
The DeLamar project, located in southern Idaho, includes Kinross’ DeLamar Mine that closed in 1998
due to low precious metal prices (below US$300) after producing 1.6Mozs of gold and 100Mozs of silver.
Located 80 km south of Boise, Idaho, the DeLamar Project constitutes roughly 5,300 acres of patented
and unpatented claims, and a further 4,100 acres of leased lands with approximately 1,575 drill holes
and 145,940m of drilling outlined in historic databases. Average drill hole depth was less than 100m,
with only four holes deeper than 350m. A material portion of drilled out precious metal mineralization
remains un‐mined, with significant exploration potential to outline further near surface bulk tonnage
resources as well as high grade underground potential using modern exploration techniques. Utilizing all
available drill data, Integra is in the process of completing an updated resource estimate for the
DeLamar Project and expects to announce in the coming weeks.
“We are pleased to be part of this formative transaction with Kinross because, in our view, the pedigree
and genesis of this asset opportunity bears some striking similarities to Integra Gold’s asset acquisition
of Sigma‐Lamaque, back at its nascent stages,” stated George Salamis, President and CEO of Integra.
“Integra is once again emerging as a precious metals company with a past producing property in a
developed world, pro‐mining jurisdiction, with excellent access and infrastructure and host to a large
geological database to work from. This property hasn’t seen any modern exploration work for almost 30
years. The Integra team is keen to get working on financing and executing an aggressive path of
exploration and future studies. We believe the exploration upside potential for both heap‐leachable
gold‐silver mineralization at surface and high grade, vein‐type “feeder” mineralization is very
promising.”
“Our goal was to find a project in North America that has the possibility to offer significant upside
potential and shareholder value, similar to what we did with Integra Gold,” added Steve de Jong,
Chairman of Integra. “We could not have asked for a better project than DeLamar to build this value
and we are pleased to have Kinross as a large shareholder. The Integra Gold team delivered on the
Lamaque project during some of the most depressed market conditions in recent memory. We are
‐ 2 ‐
confident that we can once again deliver from yet another world‐class gold jurisdiction, especially in this
more promising precious metals market.”
Key DeLamar Highlights
Established production history: Over 100 years of prior open pit and underground mining
operations, with total historic production of 1.6Mozs of gold and 100Mozs of silver and excellent CIL
and heap leach recoveries. Typical recoveries for dominantly oxidized ores processed through the
DeLamar agitated leach mill between 1990 and 1998 ranged between 85% to 95% for gold and 70%
to 80% for silver. Recoveries for mixed oxide ore typically ranged between 77% to 90% for gold and
65% to 75% for silver.
“Under the radar” opportunity with multiple untested targets: The mine has remained relatively
unknown since it was put on care and maintenance in 1998 following low metal prices, and no
exploration work has taken place on multiple high conviction targets in over two decades.
Robust resource potential: As a result of limited exploration work during DeLamar’s operating mine
life and no exploration post closure, the potential to expand existing mineralization and outline
further near‐surface bulk tonnage resources is high, as well as the opportunity to employ modern
techniques to explore high grade underground targets.
Excellent infrastructure and existing on‐site facilities: All‐season road access, grid power, a lined
water treatment pond, workshop, and an office exist on site.
NI 43‐101 resource estimate underway: Mine Development Associates (“MDA”) based in Reno
Nevada is currently completing a mineral resource estimate on DeLamar that is scheduled to be
completed in the coming weeks.
Terms of the DeLamar Acquisition
Integra has entered into a binding stock purchase agreement dated September 18, 2017 (the
“Agreement”) with a wholly‐owned subsidiary of Kinross pursuant to which the Company has agreed to
acquire the entity holding 100% of Kinross’ interest in DeLamar, located in southern Idaho (the
“Transaction”).
The terms of the proposal for the purchase of the DeLamar project are outlined as follows:
i. Basic Economic Terms: The aggregate consideration payable by Integra for the purchase of
DeLamar will consist of the following:
a. Cash payments to Kinross totalling C$7,500,000, comprised of between C$3,000,000 and
C$5,000,000 payable at the DeLamar Closing, with the exact amount dependent on the
size of the Private Placement, and the balance being payable within 18 months after the
closing of the sale and purchase of DeLamar (the “DeLamar Closing”).
b. Integra Shares to be issued to Kinross or its designee at the DeLamar Closing (“Integra
Consideration Shares”) constituting 9.9% of the outstanding Integra Shares, on a non‐
diluted basis, after giving effect to the Private Placement.
‐ 3 ‐
Kinross has retained a 2.5% NSR royalty that applies on those portions of the DeLamar claims that are
unencumbered by existing royalties, which may be reduced to 1% upon the Kinross receiving total
royalty payments of C$ 10,000,000.
ii. Concurrent Equity Financing:
a. The DeLamar Closing will be conditional upon the closing of an equity private placement
for aggregate gross proceeds of at least C$25,000,000 (the “Private Placement”).
Acquisition of Additional Florida Mountain Claims
Conditional upon the completion of the Transaction, Integra will acquire 47 mining claims totaling
approximately 238 hectares that form part of the Florida Mountain claims group, which are situated in
the Carson Mining District in Owyhee County, Idaho and located adjacent to the DeLamar Project. The
LOIs provide Integra with the exclusive right to execute definitive agreements for the acquisition of
certain patented claims in Florida Mountain. The terms of the proposal for the purchase of additional
Florida Mountain claims from two private groups are outlined as follows:
a) Aggregate Purchase Price: US$2 Million
b) Royalties: The project is being sold royalty‐free
c) Closing: The closing of the Florida Mountain transaction will be concurrent with the DeLamar
Closing.
Investor Rights Agreement
In connection with the issuance of the Integra Consideration Shares to Kinross, Kinross and the Company
will enter into an investor rights agreement on the effective date of the DeLamar Closing, pursuant to
which, and subject to certain conditions, Kinross will have the right (until such time as Kinross
beneficially owns less than 5% of the Integra Shares for the first time following completion of the
Transaction) to (i) participate in any future equity offerings by the Company in order to maintain its
proportionate interest in the Company and (ii) nominate one person to the board of directors of the
Company (until such time as Kinross beneficially owns less than 9.9% of the Integra Shares for the first
time following completion of the Transaction). Kinross will also be subject to a lock‐up until the date
that is 12 months from the DeLamar Closing, which will prohibit Kinross from disposing of its Integra
Consideration Shares, subject to certain exceptions.
Stock Exchange Matters
As at the date hereof, the Integra Shares are listed on the Canadian Securities Exchange. A condition to
completion of the Transaction is the conditional approval for the listing of the Integra Shares on the TSX
Venture Exchange.
‐ 4 ‐
Advisors and Counsel
Integra has retained GMP Securities L.P. as financial advisor and Cassels Brock & Blackwell LLP as legal
advisor.
Qualified Person
Unless otherwise indicated, the scientific and technical information contained in this news release has
been reviewed and approved by E. Max Baker Ph.D. M. AustIMM, of Reno, Nevada who is a "qualified
person" within the meaning of National Instrument 43‐101 – Standards of Disclosure for Mineral
Projects and is independent of Integra.
About Integra Resources
Integra Resources Corp., formerly, Mag Copper, is a development‐stage company engaged in the
acquisition, exploration and development of mineral properties in the Americas. The management team
comprises the former executive team from Integra Gold Corp.
ON BEHALF OF THE BOARD OF DIRECTORS
George Salamis
CEO & President
CONTACT INFORMATION
Corporate Inquiries: Chris Gordon, [email protected]
Or visit the company website: www.integraresources.com
This news release contains "forward‐looking information" and "forward‐looking statements" (collectively, "forward‐looking
statements") within the meaning of the applicable Canadian securities legislation. All statements, other than statements of
historical fact, are forward‐looking statements and are based on expectations, estimates and projections as at the date of this
news release. Any statement that involves discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives, assumptions, future events or performance (often but not always using phrases such as "expects", or "does not
expect", "is expected", "anticipates" or "does not anticipate", "plans", "budget", "scheduled", "forecasts", "estimates",
"believes" or "intends" or variations of such words and phrases or stating that certain actions, events or results "may" or
"could", "would", "might" or "will" be taken to occur or be achieved) are not statements of historical fact and may be forward‐
looking statements. In this news release, forward‐looking statements relate, among other things, to: the completion of the
Transaction and the acquisition of the Florida Mountain claims; the anticipated benefits of the Transaction (including the
acquisition of the Florida Mountain claims and the Private Placement) to Integra and its shareholders; the timing and receipt of
the required stock exchange and regulatory approvals for the Transaction; the timing and ability of Integra to satisfy the
conditions precedent to completing the Transaction and the acquisition of the Florida Mountain claims; completion of the
Private Placement; anticipated use of proceeds from the Private Placement; the length of the current market cycle and
requirements for an issuer to survive in the current market cycle; future growth potential of Integra; and future development
plans.
These forward‐looking statements are based on reasonable assumptions and estimates of management of Integra at the time
such statements were made. Actual future results may differ materially as forward‐looking statements involve known and
unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Integra to
materially differ from any future results, performance or achievements expressed or implied by such forward‐looking
statements. Such factors, among other things, include: satisfaction or waiver of all applicable conditions to the completion of
the Transaction and the acquisition of the Florida Mountain claims (including receipt of all necessary stock exchange and
regulatory approvals or consents, and the absence of material changes with respect to the parties and their respective
businesses, all as more particularly set forth in the Agreement); ability to close the Private Placement on the proposed terms or
at all, the synergies expected from the Transaction and the acquisition of the Florida Mountain claims not being realized;
‐ 5 ‐
business integration risks; fluctuations in general macroeconomic conditions; fluctuations in securities markets; fluctuations in
spot and forward prices of gold, silver, base metals or certain other commodities; fluctuations in currency markets (such as the
Canadian dollar to United States dollar exchange rate); change in national and local government, legislation, taxation, controls,
regulations and political or economic developments; risks and hazards associated with the business of mineral exploration,
development and mining (including environmental hazards, industrial accidents, unusual or unexpected formations pressures,
cave‐ins and flooding); inability to obtain adequate insurance to cover risks and hazards; the presence of laws and regulations
that may impose restrictions on mining; employee relations; relationships with and claims by local communities and indigenous
populations; availability of increasing costs associated with mining inputs and labour; the speculative nature of mineral
exploration and development (including the risks of obtaining necessary licenses, permits and approvals from government
authorities); and title to properties. Although the forward‐looking statements contained in this news release are based upon
what management of Integra believes, or believed at the time, to be reasonable assumptions, Integra cannot assure its
shareholders that actual results will be consistent with such forward‐looking statements, as there may be other factors that
cause results not to be as anticipated, estimated or intended.
Readers should not place undue reliance on the forward‐looking statements and information contained in this news release.
Except as required by law, Integra assumes no obligation to update the forward‐looking statements of beliefs, opinions,
projections, or other factors, should they change, except as required by law.