Integra Gold (ICG.V) has announced it has sold 7 million shares of Eastmain Resources (ER.TO) last week at an average price of C$0.75/share. This allowed the company to convert the stock into cash, increasing its cash position by C$5.25M.
After this sale, Integra still has approximately 8.9 million shares of Eastmain which is approximately 5%, which is an important threshold as it allows Integra to retain all the rights it had been granted under the Investor Rights Agreement with Eastmain.
The sale is a little bit surprising. Just like so many others, we originally expected Integra’s management to consider Eastmain Resources as their ‘next step’ to create shareholder value in the Québec gold space after Integra is being sold to a larger suitor. It now looks like Integra is gearing up to develop the Sigma-Lamaque project on its own, although we still think the company is one of the most attractive buyout targets in the Northern hemisphere.
Go to Integra’s website
The author has a long position in Integra Gold. Integra is a sponsor of the website. Please read the disclaimer
