Integra Gold (
TSXV:ICG,
Forum) announced Wednesday it has signed a
definitive share purchase agreement with Eldorado Gold Corporation (
TSX:ELD,
Forum) for 2.15% of the currently issued and outstanding shares of ICG, for $2.446 million.
The deal ups T.ELD’s stake in Integra to 15% of the company, but is conditional on Integra closing a previously announced $15 million bought deal led by Cormark Securities, which is expected to happen mid-February.
Integra has been pounding out regular discoveries at its Lamaque project, 550 kms northwest of Montreal, while Eldorado continues to shine as a low cost gold producer in Asia and Europe.
REACTION:
V.ICG up 1.49% on the day with solid volume, and continues to defy market trends.
Eldorado up 4.37%.
OUR TAKE:
It’s no secret that Integra is proving its promise, but the share price continues to be lower than it should. In a bull market, you wouldn’t get near ICG for less than a buck, considering what it’s been up to.
Factoring that in, Eldorado got a great deal on its investment, while holders from last August are showing a nice profit with the stock rising from $0.23 then to $0.34 today, a solid 50% return in just six months.
--Chris Parry
https://www.twitter.com/chrisparry