VANCOUVER (miningweekly.com) – Exploration company Integra Resources has closed the cash-and-scrip acquisition of its flagship DeLamar gold and silver project, in Southern Idaho, from a subsidiary of Kinross Gold, it advised on Friday.
Under the terms of the acquisition, Integra paid Kinross C$7.5-million in cash and issued 5.55-million shares, giving Kinross a 9.9% stake in the junior explorer.
The project is also subject to a variable net smelter return royalty payable to Kinross.
Integra also announced that its common shares have been approved for listing on the TSX-V and de-listed from the lower-tiered Canadian Securities Exchange. It is expected to start trading on the TSX-V under the symbol 'ITR' on Tuesday.
Integra last month outlined a new inferred resource at the DeLamar gold/silver project, saying it is a critical first step on an 18- to 24-month journey to develop the brownfield project.
Completed by Reno, Nevada-based Mine Development Associates (MDA), the inferred resource estimate was based on a 0.3 g/t gold-equivalent (AuEq) cutoff grade and comprises 117.93-million tonnes grading 0.41 g/t gold and 24.34 g/t silver, for a total of 1.59-million ounces of gold and 91.88-million ounces of silver, or 2.67-million ounces of AuEq, averaging 0.7 g/t AuEq.
A sensitivity analysis has demonstrated that by increasing the AuEq cutoff grade to 0.75 g/t, the resource estimate entails 33.72-million tonnes grading 0.69 g/t gold and 48.69 g/t silver, for a total of 735 000 oz of gold and 52.75-million ounces of silver, or 1.36-million tonnes AuEq, averaging 1.26 g/t AuEq.