TSX-V-listed companies Integra Resources and Millennial Precious Metals on Monday announced an at-market merger, which will create one of the biggest precious metals development and exploration companies in the Great basin of the US.

Under the terms of the transaction, Millennial shareholders will receive 0.23 of a common share of Integra for each Millennial share held. Existing shareholders of Integra and Millennial will own about 65% and 35%, respectively, of the outstanding Integra shares on the closing of the transaction.

"The industry is in need of consolidation, and the support amongst the investment community and from Wheaton for this merger and concurrent financing has been resoundingly positive,” said Integra president and CEO George Salamis.

The companies also announced concurrent equity financings for gross proceeds of C$35-million, comprising a brokered offering and nonbrokered offering. Integra would use the proceeds to fund an updated mineral resource estimate (MRE) and mine plan of operations at the DeLamar project, the preparation of an MRE and preliminary economic assessment on Millennial's Wildcat and Mountain View projects, as well as ongoing baseline work for additional permitting and exploration at the companies’ respective projects.

Integra and Millennial also welcomed TSX-, NYSE- and LSE-listed Wheaton Precious Metals as a new cornerstone investor with the streaming group agreeing to invest an amount equal to up to 9.9% of the issued and outstanding Integra shares.

The combined company will feature a diversified portfolio of assets including Integra’s past-producing gold/silver DeLamar project, in south-west Idaho, and Millennial’s oxide-focused Wildcat and Mountain View projects, in western Nevada. 

The combined company will boast one of the biggest gold/silver endowments in the Great basin not controlled by a major mining company. In addition to the development pipeline, meaningful exploration potential exists in the BlackSheep, War Eagle and non-oxide targets at DeLamar and the Dune, Eden, Marr, Ocelot, Cerro Colorado and Red Canyon projects from Millennial.

The combined portfolio consists of 10 assets across various stages of development with a total measured and indicated resource containing 2.6-million ounces of gold and 126.9-million ounces of silver and an inferred resource of 1.65-million ounces of gold and 16.4-million ounces of silver.

“The merger with Millennial is an exciting combination that provides balanced benefits to both sets of shareholders and streamlines the permitting and development of three high-quality, oxide, heap leach projects," added Salamis.