07:09 AM EDT, 07/29/2024 (MT Newswires) -- Integra Resources ( ITRG ) on Monday agreed to buy Florida Canyon Gold ( FCGVF ) for about $95 million.

The combined company will have immediate gold production of approximately 70 thousand ounces of gold equivalent per annum from the Florida Canyon Gold Mine, coupled with a "built-in growth pipeline of high-quality development stage assets" including the DeLamar Project and the Nevada North Project, a statement said.

Under the terms of the transaction, FCGI shareholders will receive 0.467 of a common share of Integra for each FCGI share. Existing shareholders of Integra and FCGI will own approximately 60% and 40%, respectively, of the outstanding Integra shares on closing of the transaction (but prior to the completion of an equity financing) on a fully-diluted in-the-money basis.

The Exchange Ratio implies consideration of $0.69 per FCGI share based on the closing market price of the Integra shares on the TSX Venture Exchange on July 26.

In connection with the transaction, Integra announced a concurrent bought deal private placement financing of Subscription Receipts for gross proceeds of approximately C$20 million. Integra said the net proceeds from the Offering will be used to fund mine optimization opportunities at Florida Canyon, for continued advancement of DeLamar and Nevada North, and for general corporate purposes. The Offering includes participation from key cornerstone shareholders of both Integra and FCGI, including Beedie Investments Ltd., Wheaton Precious Metals Corp. ( WPM ) , and GMT Capital Corp.

ITR jumped near 6% while FGCV was unchanged last Friday.