Integra Resources (ITR.V) announced last week it intended to raise C$21.6M at C$1.15 per share in a deal which included a bought deal for a total of C$15M as well as a strategic investment of Coeur Mining (CDE) for an additional C$6.6M. At least, that was the original intention.
As the demand for the placement was so strong, Integra and lead underwriter Raymond James decided to upsize the bought deal portion of the capital raise from C$15M to C$22M to accommodate the demand from participants. This means Integra will now raise at least C$28.6M (as Coeur’s commitment remained unchanged at C$6.6M) but as the order book for the bought deal was larger than the upsized C$22M we think it’s very likely the 15% over-allotment option allowing Raymond James to raise up to C$25.3M will be exercised.
This would mean Integra Resources could easily raise C$31.9M (assuming the full overallotment option will be exercised) which would make it the largest single capital raise in the history of Integra Resources and its predecessor Integra Gold.
Additionally, the net proceeds of around C$30M (RayJay gets a 6% fee) combined with the current cash position (which we estimate at C$8-9M) means the company is almost fully funded to the completion of a pre-feasibility or a feasibility study as the total cost to complete these studies was estimated at C$40-50M, including C$20M worth of drilling. Now the financial aspect is almost fully taken care of, we would prefer Integra to go straight to a feasibility study even if it would take a little bit longer.
Disclosure: The author has a long position in Integra Resources. Integra is a sponsor of the website.