Gold Juniors Should Consolidate, Extra M&A to Come

A slew of M&A exercise is hitting the gold house, and George Salamis of Integra Sources (TSXV:ITR,NYSEAMERICAN:ITRG) joined the Investing Information Community to debate his firm’s just lately introduced merger.

The corporate, whose primary asset is the DeLamar challenge in Idaho, will probably be becoming a member of forces with Nevada-focused Millennial Valuable Metals (TSXV:MPM,OTCQB:MLPMF) to create one of many largest valuable metals explorers and builders within the Nice Basin.

“Consider it because the consolidation that the trade wants and has been searching for for such a very long time,” Salamis stated on the sidelines of this 12 months’s Prospectors & Builders Affiliation of Canada (PDAC) conference in Toronto.

“We’re stronger collectively. As an organization, we’ll have 6 million ounces of whole assets — for a junior mining firm that is loads,” Salamis continued. “It will be actually unparalleled within the context of the Nice Basin, and (there’s) a pathway to manufacturing, which is probably 230,000 to 250,000 ounces a 12 months … so larger, stronger, extra market momentum to draw bigger traders.”

Along side the merger, Integra and Millennial Valuable Metals have closed a C$35 million financing, which incorporates C$10.5 million from streaming firm Wheaton Valuable Metals (TSX:WPM,NYSE:WPM) as an investor.

When requested what the latest wave of gold M&A exercise says about the place the market is at, Salamis was optimistic.

“Sometimes the sort of consolidation occurs proper on the backside,” he stated. “And so there’s that feeling — and I do know we have been saying it for some time — however there’s that feeling that issues are bottoming out right here. While you’re seeing ridiculous asset valuations on the low finish reminiscent of we’re seeing now, it is the very best time to start out consolidating.”

On the subject of the gold value this 12 months, Salamis stated he thinks US$2,000 per ounce is within the playing cards transferring ahead. “Into the second half of the 12 months I believe we will have a fairly sturdy wind at our backs from a gold — valuable metals (and) silver as nicely — perspective. I believe all of the forces are at play that form of communicate to that proper now,” he stated.

Watch the interview above for extra from Salamis on the gold sector and Integra’s merger with Millennial Valuable Metals. You can even click on right here for the Investing Information Community’s full PDAC playlist on YouTube.

Remember to observe us @INN_Resource for real-time updates!

Securities Disclosure: I, Charlotte McLeod, maintain no direct funding curiosity in any firm talked about on this article.

Editorial Disclosure: The Investing Information Community doesn’t assure the accuracy or thoroughness of the data reported within the interviews it conducts. The opinions expressed in these interviews don’t mirror the opinions of the Investing Information Community and don’t represent funding recommendation. All readers are inspired to carry out their very own due diligence.

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