A slew of M&A activity is hitting the gold space, and George Salamis of Integra Resources (TSXV:ITR,NYSEAMERICAN:ITRG) joined the Investing News Network to discuss his company’s recently announced merger. The company, whose main asset is the DeLamar project in Idaho, will be joining forces with Nevada-focused Millennial Precious Metals (TSXV:MPM,OTCQB:MLPMF) to create one of the largest precious metals explorers and developers in the Great Basin. “Think of it as the consolidation that the industry needs and has been looking for for such a long time,” Salamis said on the sidelines of this year’s Prospectors & Developers Association of Canada (PDAC) convention in Toronto.”We’re stronger together. As a company, we’ll have 6 million ounces of total resources — for a junior mining company that’s a lot,” Salamis continued. “It’s going to be really unparalleled in the context of the Great Basin, and (there’s) a pathway to production, which is perhaps 230,000 to 250,000 ounces a year … so bigger, stronger, more market momentum to attract larger investors.”In conjunction with the merger, Integra and Millennial Precious Metals have closed a C$35 million financing, which includes C$10.5 million from streaming company Wheaton Precious Metals (TSX:WPM,NYSE:WPM) as an investor. When asked what the recent wave of gold M&A activity says about where the market is at, Salamis was positive.”Typically this type of consolidation happens right at the bottom,” he said. “And so there’s that feeling — and I know we’ve been saying it for a while — but there’s that feeling that things are bottoming out here. When you’re seeing ridiculous asset valuations on the low end such as we’re seeing now, it’s the best time to start consolidating.”When it comes to the gold price this year, Salamis said he thinks US$2,000 per ounce is in the cards moving forward. “Into the second half of the year I think we’re going to have a pretty strong wind at our backs from a gold — precious metals (and) silver as well — perspective. I think all the forces are at play that kind of speak to that right now,” he said. Watch the interview above for more from Salamis on the gold sector and Integra’s merger with Millennial Precious Metals. You can also click here for the Investing News Network’s full PDAC playlist on YouTube.Don’t forget to follow us @INN_Resource for real-time updates!Securities Disclosure: I, Charlotte McLeod, hold no direct investment interest in any company mentioned in this article.Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.
Source: Read More
