VANCOUVER, BC--(Marketwired - August 31, 2015) -
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Integra Gold Corp. (TSX VENTURE: ICG) ("Integra Gold" or the "Company") is pleased to announce that today it has closed its previously announced private placement with Eldorado Gold Corporation (EGO) (ELD.TO) ("Eldorado") whereby Eldorado has invested $14.6 million in Integra by way of a non-brokered private placement of common shares of Integra (the "Private Placement"). As a result of the Private Placement, Eldorado now holds 14.96% of Integra's issued and outstanding common shares, on an undiluted basis.
Under the terms of the agreement, Eldorado purchased 52,058,200 common shares of Integra (the "Common Shares") at a price of $0.28 per share (the "Subscription Price") for gross proceeds of $14,576,296. The Common Shares issuable pursuant to the Private Placement are subject to a statutory four-month hold period expiring January 1, 2016.
"This investment by Eldorado Gold provides Integra with the balance sheet strength to fully test the exploration potential at the Triangle Zone and other targets," commented Company President and CEO, Stephen de Jong. "We are ramping up the number of diamond drills on site now as we prepare for active fall and winter programs. Over the next few months investors can expect to see a steady flow of drill results as well as an updated resource estimate for the Triangle Zone."
The Company intends to use the proceeds of the Private Placement for the continued exploration at the Lamaque Project, with a focus on the Triangle Zone, as well as for general corporate purposes.
Project and Company Profile
Integra's Lamaque South Gold Project and Sigma-Lamaque Mill and Mine Complex are located directly east from the city of Val-d'Or along the prolific Abitibi Greenstone belt in the Province of Québec, Canada, approximately 550 km northwest of Montréal. Québec is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise are readily available.
The Company is primarily focused on exploring and developing the high-grade areas of the Lamaque South Project. The Lamaque South Project is divided into three clusters, the North, South and West cluster. The primary targets are the high-grade Parallel zone in the North Cluster and the Triangle zone in the South Cluster. The recently acquired Sigma Mill, located 1 kilometre from the Parallel zone and 3 kilometres from the Triangle zone, is a fully-permitted, 2,200 tonnes per day mill and tailings facility.
About Eldorado Gold
Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania and Brazil. Eldorado's success to date is based on a low cost gold production strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities where it operates. Eldorado's common shares trade on the Toronto Stock Exchange (ELD.TO) and the New York Stock Exchange (EGO).
ON BEHALF OF THE BOARD OF DIRECTORS
Stephen de Jong
CEO & President
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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.
Cautionary Note Regarding Forward Looking Statements: Certain disclosures in this release constitute forward-looking statements, including timing of completion of the Eldorado Private Placement. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, those matters identified in its continuous disclosure filings, including its most recently filed MD&A. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.