Integra Gold (ICG-V) June 27, '14 has closed its private placement previously announced on June 10, 2014, for gross proceeds of $10,045,124. "The capital raised in this offering will provide Integra with a great deal of flexibility as we advance the Lamaque project, as well as evaluate various development, processing and exploration opportunities," commented company chief executive officer Stephen de Jong. "We are encouraged by the response to this offering from both new and existing investors."
The company issued 30,156,758 units for gross proceeds of $6,031,352. The company also issued 15,437,583 flow-through shares for gross proceeds of $4,013,772. For further details, please see company press release dated June 10, 2014.
Each unit consists of one common share of the company and one common share purchase warrant. Each warrant entitles the holder thereof to purchase one common share at a price of 30 cents for 24 months following closing of the offering. Should the common shares trade on the TSX Venture Exchange at a weighted average price which is greater than 50 cents for any 10 consecutive trading days, the company may, on written notice to the holders of the warrants, reduce the exercise period of the warrants to a date that is not less than 30 days from the date of the notice. The company intends to use the net proceeds of the offering for continued exploration of the Lamaque project, testing of new exploration targets, completion of an updated mineral resource estimate, evaluation of various development alternatives for the Lamaque project and for general working capital purposes. The proceeds from the issuance of the FT shares will qualify as Canadian and/or Quebec exploration expenses, which will be renounced to investors no later than Dec. 31, 2014.
Total finders' fees of $603,096 were paid in conjunction with the offering, and 2,708,568 compensation options were granted. The compensation options entitle the holder to purchase one common share at a price of 26 cents for 24 months following closing of the offering. If the common shares trade on the TSX Venture Exchange at a weighted average price greater than 50 cents for any 10-consecutive-trading-day period, the company may, on written notice to the holders of the compensation options, reduce the exercise period to a date that is not less than 30 days from the date of the notice. All common shares issued and issuable hereunder (including those issuable upon the exercise of warrants and the compensation warrants), the warrants, and the compensation warrants are subject to a hold period expiring Oct. 28, 2014. Certain directors and officers of the company have acquired securities under the private placement. Such participation is considered to be a related party transaction as defined under Multilateral Instrument 61-101. The transaction will be exempt from the formal valuation and minority shareholder approval requirements of MI 61-101 as neither the fair market value of any shares issued to or the consideration paid by such persons will exceed 25 per cent of the company's market capitalization.
In addition to the offering outlined above, the company has entered into a share purchase agreement dated June 27, 2014, with Pinetree Capital Ltd. Pursuant to the agreement, Integra will issue five million units at a price of 20 cents per unit in exchange for 2,222,222 common shares of Pinetree at 45 cents per common share, representing a value of $1-million. This transaction is scheduled to close on or about June 27, 2014, and is subject to certain conditions, including approval of the TSX Venture Exchange and Toronto Stock Exchange, as applicable. No finders' fees are payable on this transaction. The company also announces it has granted 300,000 stock options in accordance with its stock option plan to employees and consultants of the company. The options are priced at 25 cents per option and expire on June 27, 2021. |
