SOURCE: Integra Gold Corp.

Integra Gold Corp

February 11, 2016 09:25 ET

Integra Gold Corp. Announces Closing of $15.98 Million Bought Deal Financing and $2.56 Million Private Placement With Eldorado Gold Corporation

VANCOUVER, BC--(Marketwired - February 11, 2016) -


Integra Gold Corp. (TSX VENTURE: ICG) (OTCQX: ICGQF) ("Integra" or the "Company") is pleased to announce the closing of the previously announced bought deal offering of 31,950,000 flow-through common shares (the "Flow-Through Shares"), including partial exercise of the over-allotment option, for gross proceeds of $15,975,000 (the "Offering") by way of short form prospectus. The Offering was led by Cormark Securities Inc., on behalf of a syndicate of underwriters including Paradigm Capital Inc., GMP Securities L.P., Macquarie Capital Markets Canada Ltd., Beacon Securities Limited, Haywood Securities Inc. and Mackie Research Capital Corporation.

The proceeds received by the Company from the sale of the Flow-Through Shares will be used to incur Canadian exploration expenditures that are "flow-through mining expenditures" (as such terms are defined in the Income Tax Act (Canada)) on the Company's Québec mineral claims and mining concessions, which will be renounced to the subscribers with an effective date no later than December 31, 2016, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issue of Flow-Through Shares under the Offering.

The Company is pleased to also announce the closing of its previously announced private placement with Eldorado Gold Corporation ("Eldorado") whereby Eldorado has invested approximately $2.56 million in Integra by way of a non-brokered private placement of common shares of Integra (the "Private Placement").

Under the terms of a share purchase agreement between Integra and Eldorado dated February 1, 2016, Eldorado purchased 8,111,895 common shares of Integra (collectively, the "Eldorado Shares") at a price of $0.315 per Eldorado Share for gross proceeds of $2,555,246.93. The Eldorado Shares issuable pursuant to the Private Placement are subject to a statutory four-month hold period expiring June 12, 2016. The net proceeds received by the Company from the Private Placement will be used for continued exploration on the Company's Lamaque Project and general working capital.

Following the close of the Offering and the Private Placement the Company's cash position is approximately $33 million.

Eldorado now owns 60,170,095 common shares in the capital of Integra (the "Common Shares") constituting 15.0% of the outstanding Common Shares on an undiluted basis following the closing of the Private Placement and the Offering. Eldorado acquired the Eldorado Shares for investment purposes and may acquire further Common Shares or dispose of its holdings of Common Shares both as investment conditions warrant. To obtain a copy of the Early Warning Report to be filed by Eldorado in connection with the Private Placement, please contact Krista Muhr at 1188 - 550 Burrard Street, Vancouver, B.C. V6C 2B5, (tel: 604 687 4018).

The securities offered have not been, and will not be, registered under the United States Securities Act of 1933, as amended, (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release does not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor in any other jurisdiction.

Project and Company Profile

Integra's Lamaque Project and Sigma-Lamaque Mill and Mine Complex are located directly east from the city of Val-d'Or along the prolific Abitibi Greenstone belt in the Province of Québec, Canada, approximately 550 km northwest of Montréal. Québec is rated one of the best mining jurisdictions in the world. Infrastructure, human resources and mining expertise are readily available.

About Eldorado

Eldorado is a leading low cost gold producer with mining, development and exploration operations in Turkey, China, Greece, Romania and Brazil. Eldorado's success to date is based on a low cost gold production strategy, a highly skilled and dedicated workforce, safe and responsible operations, and long-term partnerships with the communities where it operates. Eldorado's common shares trade on the Toronto Stock Exchange (TSX: ELD) and the New York Stock Exchange (NYSE: EGO).


Stephen de Jong
CEO & President and director

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Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

Cautionary Note Regarding Forward Looking Statements: Certain disclosures in this release constitute forward-looking statements. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that are based on the Company's current beliefs as well as assumptions made by and information currently available to the Company, including that the Company is able to obtain any government or other regulatory approvals required to complete the Company's planned exploration activities, that the proceeds of the Offering and Private Placement are used as currently expected and renounced within the expected timeframes, that the Company is able to procure personnel, equipment and supplies required for its exploration activities in sufficient quantities and on a timely basis and that actual results of exploration activities are consistent with management's expectations. Although the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect, and the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such risk factors include, among others, that actual results of the Company's exploration activities will be different than those expected by management and that the Company will be unable to obtain or will experience delays in obtaining any required government approvals or be unable to procure required equipment and supplies in sufficient quantities and on a timely basis. Readers are cautioned not to place undue reliance on forward-looking statements. The Company does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.

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