Integra Gold (ICG.V) has announced Eldorado Gold (ELD.TO, EGO) is taking a 15% strategic stake in Integra Gold as it will acquire 52.06M new shares of Integra Gold at a price of C$0.28 per share for a total consideration of C$14.6M. The shares do not have a warrant attached to them, so there will be no additional dilution when warrants get exercised.
This will increase Integra’s total cash position to roughly C$27M and this money will be spent on the current 90,000 meter drill program (executed by no less than five drill rigs by the end of this month) as well as a very extensive fall and winter drill program which will consist of a drill program executed by a stunning ten drill rigs.
With Eldorado now entering the ‘race’ for Integra Gold, things surely are heating up in the Val D’Or region as now two major gold producers have a sizeable stake in Integra Gold, and this could only intensify the competition for the asset. Eldorado isn’t in the game of investing in junior mining companies, it will definitely want to own the asset.
> Click here to go to Integra’s website
Disclosure: The author holds a long position in Integra Gold. Integra is a sponsor of the website. Please see our disclaimer for current positions.
