Millennial Precious Metals – A Breakdown Of The Transformative Merger With Integra Resources
Jason Kosec, President and CEO of Millennial Precious Metals (TSX.V:MPM – OTCQB:MLPMF), joins us to break down the transformative merger with Integra Resources (TSX-V: ITR; NYSE: ITRG). We discuss some of the key metrics on what the pro-forma combined company will have as far as an initial valuation, how that valuation could rerate in line with peers, the combined resources, and what the growth profile will be. After combination, the new pro-forma Company will be one of the largest precious metals development and exploration companies in the Great Basin, featuring a diversified portfolio of assets including Integra’s past producing gold-silver DeLamar Project in southwest Idaho and Millennial’s oxide-focused Wildcat and Mountain View Projects in western Nevada.
The Companies also have announced concurrent equity financings for aggregate gross proceeds of C$35 million, where the net proceeds of which are expected to be used by Integra, following completion of the Transaction, to fund an updated Mineral Resource Estimate and Mine Plan of Operations at the DeLamar Project, the preparation of a Mineral Resource Estimate and Preliminary Economic Assessment (PEA) on Millennial’s Wildcat and Mountain View Projects in Nevada, as well as on-going baseline work for additional permitting and exploration at the Companies’ respective projects. In addition to the development pipeline, meaningful exploration potential exists in the BlackSheep, War Eagle and non-oxide targets at DeLamar and the Dune, Eden, Marr, Ocelot, Cerro Colorado and Red Canyon Projects from Millennial.
Wheaton Precious Metals Corp. (TSX | NYSE | LSE: WPM) has also come on as a new cornerstone investor, with Wheaton agreeing to invest an amount equal to up to 9.9% of the issued and outstanding Integra Shares. The equity participation of Wheaton in connection with the Transaction provides significant project and transaction validation while also creating a partnership for future project financing. The equity financing also includes participation by Beedie Investments Ltd. an existing lender and shareholder of Integra.
If you have any follow up questions for Jason, or want more information on any aspect of Millennial Precious Metals, then please email us at Fleck@kereport.com or Shad@kereport.com.
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It was nice to get Jason’s take on the key benefits of the combined (MPM / ITR) company = scale, relevance, reduced G&A by $2.5 million, synergy of 2 types of expertise amongst the consolidated management teams and boards, exploration news on Nevada assets while Idaho permitting and development is moving forward to present investors bluesky upside with a solid underpinning of proven ounces in the ground and banked success, and the eventual re-rating for the overall asset base.
Not to mention, as Jason highlighted, there are all the other exploration projects and targets from both companies that are currently receiving no value that can be further value drivers for the new combined entity over time. Also having Wheaton participate (after winning out a competitive bidding process amongst other royalty companies) is another large stamp of approval for the combined pro-forma company.
Integra and Millennial Executives on the Merger of the Two Companies
Mining Stock Daily • Feb 27, 2023
“George Salamis, CEO of Integra Resources, and Jason Kosec, CEO of Millennial Precious Metals, join MSD for an exclusive interview regarding the news out that the two companies will execute a friendly at-market merger. The two share their thoughts on why the merger makes sense for both companies, how the general strategy of multiple assets will play out for shareholders, and why now makes sense for such a deal.”
This conversation is so reminiscent of other projects in the great basin at this stage of the cycle. As I read these excellent comments of Excelsior one company that this type of merger could and probably could come to fruition is Liberty gold corp. Two very viable projects in Utah and Idaho. There flagship being blackpine in Idaho. Thoughts?
Hi Rodney. Great point on Liberty Gold. I’m biased a shareholder in Liberty Gold, but they do have 2 fantastic projects as you mentioned, that I believe puts them on the takeover menu from a larger company that would want to put them into production. Black Pine has excellent economics and they’ve found new areas that expand the exploration potential and ability to keep growing resources, which is key for a larger company to see that bluesky expansion potential.
Yeah, I would not be surprised at all to see someone scoop up Liberty Gold in the next 12-18 months, but it would be nice to see it’s ounces in ground get rerated higher for a better sentiment period in the sector before they get picked off.
Randy Smallwood – Why China Is Suddenly Releasing News About Its Gold Purchases: World Gold Chair
Stansberry Research – Feb 28, 2023
“Silver has a lot of the same fundamentals that gold has and a few more,” says Randy Smallwood, president and CEO of Wheaton Precious Metals. “Silver conducts electricity better than any other metal in the world,” he tells Daniela Cambone at GSA Investor Day 2023. “We are seeing increasing investments on silver’s side, it continues to grow year after year… The fundamentals are just stronger for silver,” Smallwood asserts. “We saw the U.S. dollar weaponized so a lot of central banks around the world made a big swap toward the gold space,” he continues. “Gold is apolitical, it’s accepted around the world, and it’s not subject to the political influence the U.S. dollar has,” Smallwood reiterates. “It’s very unlikely the world would accept the renminbi as a reserve currency, but they’re going to try to get it to the same credibility that the U.S. dollar has,” he warns. “We’re well down the path of central bank digital currencies already,” Smallwood concludes.
https://youtu.be/reQMBne2b8o