Jason Kosec, President and CEO of Millennial Precious Metals (TSX.V:MPM – OTCQB:MLPMF), joins us to break down the transformative merger with Integra Resources (TSX-V: ITR; NYSE: ITRG). We discuss some of the key metrics on what the pro-forma combined company will have as far as an initial valuation, how that valuation could rerate in line with peers, the combined resources, and what the growth profile will be. After combination, the new pro-forma Company will be one of the largest precious metals development and exploration companies in the Great Basin, featuring a diversified portfolio of assets including Integra’s past producing gold-silver DeLamar Project in southwest Idaho and Millennial’s oxide-focused Wildcat and Mountain View Projects in western Nevada.
The Companies also have announced concurrent equity financings for aggregate gross proceeds of C$35 million, where the net proceeds of which are expected to be used by Integra, following completion of the Transaction, to fund an updated Mineral Resource Estimate and Mine Plan of Operations at the DeLamar Project, the preparation of a Mineral Resource Estimate and Preliminary Economic Assessment (PEA) on Millennial’s Wildcat and Mountain View Projects in Nevada, as well as on-going baseline work for additional permitting and exploration at the Companies’ respective projects. In addition to the development pipeline, meaningful exploration potential exists in the BlackSheep, War Eagle and non-oxide targets at DeLamar and the Dune, Eden, Marr, Ocelot, Cerro Colorado and Red Canyon Projects from Millennial.
Wheaton Precious Metals Corp. (TSX | NYSE | LSE: WPM) has also come on as a new cornerstone investor, with Wheaton agreeing to invest an amount equal to up to 9.9% of the issued and outstanding Integra Shares. The equity participation of Wheaton in connection with the Transaction provides significant project and transaction validation while also creating a partnership for future project financing. The equity financing also includes participation by Beedie Investments Ltd. an existing lender and shareholder of Integra.
If you have any follow up questions for Jason, or want more information on any aspect of Millennial Precious Metals, then please email us at Fleck@kereport.com or Shad@kereport.com.
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