Integra Gold (ICG.V) has announced the company has entered into a share purchase agreement with Eastmain Resources (ER.TO) whereby Integra will invest C$6M in Eastmain Resources by purchasing 3.1 million flow-through shares (at C$0.50 each) as well as 12.8 million units priced at C$0.35 per unit. Each unit consists of one common share as well as one half of a warrant whereby a full warrant will allow Integra Gold to purchase an additional share at C$0.50.
This is a very interesting development, as Integra has also signed an agreement with the existing management team and Board of Directors of Eastmain Resources, and it looks like Integra’s nominees for the Eastmain board are very high quality. There seems to be a mix of ex-Goldcorp employees as well as Stephen de Jong and George Salamis, respectively the CEO and Chairman of Integra Gold. As the Integra people now have quite a bit of experience with (narrow-)vein gold deposits in Québec, it does look like the new board might be able and willing to speed up the exploration activities.
On top of that, Eastmain has announced there will be an additional private placement to raise an additional C$5M. This means Eastmain will have in excess of C$10M in its treasury which would allow the company to embark on a substantial drill program to unlock the value from the Clearwater deposit in Québec.
Columbus Gold (CGT.V) also wanted to shake things up at Eastmain, and has already congratulated Integra Gold and Eastmain Resources with the new plans so it looks like there’s nothing stopping Integra Gold from getting exposure to Eastmain’s projects as well. Eastmain will release a PEA on the Clearwater project in the current quarter, but it will be very difficult to impress us with this first PEA and adding directors with a sufficient amount of experience in exploring and developing minds in Québec might come in very handy to enhance the quality of the asset and unlock more value for its shareholders.