Eldorado Gold has agreed to buy the remaining shares of Integra Gold Corp in a deal valued at about C$590 million. The purchase price represents a 52% premium to the closing share price for Integra Gold on Friday, rewarding Integra shareholders handsomely.
We purcahsed shares of Integra Gold last year and subscribers are up over 100% year to date or 202% since we acquired shares. Integra Gold has been one of our top gold explorer picks and we have long speculated that they were a takeover target. Eldorado Gold already held a 13% equity position in Integra Gold prior to the announcement today, so the acquisition was not a huge surprise.
So, Who is the Next Integra Gold?
We don’t have a crystal ball, but we just bought shares of another gold explorer that has a property bordering Integra Gold. They have over 1.4 million ounces of high-grade measured and indicated gold equivalent and nearly another 1 million ounces in the inferred category. This resource is sitting just over the fence from the property that Eldorado Gold acquired from Integra Gold today!
This company has increased their resource by 4X at under $20 per ounce of gold discovered. This is indicative of the level of technical expertise of their geologists and business acumen of their management team. Recent drill results include very long strike lengths with high grade gold of over 13 g/t last week and over 22 g/t in April.
They have acquired new strategic claims in this area, expanding their footprint in a region that has produced over 70 million ounces of gold historically. We believe there will be renewed interest in the Val d’Or region after this massive acquisition and the high grade drill results from Integra and this bordering junior explorer that we just added to the GSB portfolio today.
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