Integra secures cash flow with Florida Canyon merger

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A C$95 million deal that would see Integra Resources acquire Florida Canyon Gold gives it producer status and immediate revenue to fund its pipeline of development projects in a booming gold market.

This deal is set against a backdrop of record gold prices spurring increasing consolidation in the sector, with peers in the Great Basin and beyond pursuing mergers to strengthen their positions. Companies such as Calibre Mining , Endeavour Mining , and Equinox Gold , all transitioned from explorers to producers in the past five years through strategic acquisitions, while others have focused on expanding their asset portfolios.

While Florida Canyon’s production costs have been high, recent personnel improvements and operating practices have turned performance around. The mine produced about 71,000 oz. gold-equivalent last year, with net cash and all-in sustaining of $1,368 per oz. and $1,654 per oz., respectively. The mine’s AISC for 2022 was about $1,800 per gold ounce.

The leadership structure will remain largely the same, with Integra incorporating board members from Florida Canyon and seeking a chief operating officer with heap leach expertise. The combined company is to benefit from an experienced mining workforce and potential operational enhancements at Florida Canyon.

 

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