'Consolidation has to happen' - Integra Resources' George Salamis on M&A
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(Kitco News) - Resource companies need to combine and create more critical mass, said Integra Gold CEO Geroge Salamis.
In February Salamis was interviewed by Kitco correspondent Paul Harris at the BMO Global Metals, Mining & Critical Minerals Conference.
Integra is a development-stage mining company focused on the exploration and de-risking of the past producing DeLamar gold-silver project in Idaho, USA.
At the BMO show, Integra Resources (TSX-V: ITR) announced a friendly at-market merger with Millennial Precious Metals (TSX-V: MPM). The combination of Integra and Millennial will create one of the largest precious metals development and exploration companies in the Great Basin, with the goal of becoming a mid-tier heap leach gold-silver producer, said the two businesses in a news release announcing the deal. Concurrent with the transaction was a $35 million financing by Wheaton Precious Metals.
Salamis touted the heft the combination brings.
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"We know of no other company out there in the pre-development space that can boast six million ounces, more than half of which is oxide heap leachable, " said Salamis.
Mergers and acquisitions are coming, said Salamis.
"Consolidation has to happen in our industry," Salamis added. "There are far too many issuers out there. It's the ask that we get from those who write the checks: you guys in the pre-development space have to start banding together to create critical mass.
"Ultimately, they would like to see two or three stories become one."
Coverage of BMO Global Metals, Mining & Critical Minerals Conference was sponsored by First Majestic Silver.