Integra Eliminates Corporate Debt & Secures Institutional Alignment: Clearing the Path for US Growth & Permitting Execution

• Integra's full conversion and repayment of its convertible debenture materially reduces balance sheet overhang, improving equity optionality ahead of federal permitting.
• The transaction converts Beedie Capital into an 10.51% equity holder, reinforcing institutional validation following the 2025 DeLamar Feasibility Study.
• With no corporate debt, Integra enters permitting with greater financing flexibility and reduced dilution risk.
• The move highlights a broader market theme: capital discipline and balance sheet quality now matter as much as resource scale.
• The company's US-focused asset base positions it favorably amid policy support for domestic metals production, including the March 2025 Executive Order on American mineral production.

Why Balance Sheet De-Risking Matters in the Current Mining Cycle

The mining sector's capital markets environment has undergone a structural shift since 2022. Generalist investors and institutional allocators have recalibrated their frameworks, placing greater emphasis on financial discipline, self-funding capacity, and balance sheet optionality. For development-stage companies approaching permitting and construction, this shift has meaningful implications for valuation, financing access, and strategic flexibility.

Capital Discipline Replaces Growth-at-All-Costs

The era of aggressive equity issuance to fund exploration and development has given way to a more selective capital deployment environment. Institutional investors now screen for companies demonstrating clear pathways to self-funding, whether through existing production, strategic partnerships, or conservative capital structures. This recalibration reflects lessons learned from previous cycles where overleveraged developers faced punitive dilution or project deferrals when commodity prices declined or financing windows closed.

For developers carrying convertible debt, the implications extend beyond balance sheet mechanics. Convertible instruments create uncertainty around share count, complicate equity valuations, and introduce timing risk as conversion features approach maturity. In the current environment, where permitting timelines remain extended and construction capital requirements continue to escalate, removing this uncertainty has become a strategic priority for management teams seeking institutional support.

Debt Overhang as a Hidden Cost of Capital

Convertible debentures affect enterprise value calculations in ways that extend beyond headline debt figures. The potential for conversion creates share count uncertainty, which in turn affects EV/oz metrics, peer comparisons, and institutional eligibility criteria. For index funds and long-only mandates with explicit leverage thresholds, the presence of convertible instruments can disqualify otherwise attractive investment candidates.

The removal of debt also influences perceived weighted average cost of capital. Project finance providers and strategic partners evaluate balance sheet quality as part of their due diligence frameworks. Companies entering financing discussions without legacy debt obligations demonstrate financial discipline and reduce counterparty concerns about competing claims on project cash flows.

George Salamis, President and Chief Executive Officer of Integra Resources, emphasizes the strategic importance of financial positioning ahead of the company's next development phase:

"We're fully funded to do everything that we need to do. The margins are great... It's paying the bills across the board."

The Strategic Significance of the Beedie Capital Conversion

The conversion of Integra's convertible debenture, completed on December 22, 2025, represents more than a balance sheet adjustment. The transaction mechanics and the identity of the converting party signal institutional confidence at a critical inflection point in the company's development trajectory.

From Lender to Long-Term Equity Partner

The distinction between voluntary conversion and forced restructuring matters for institutional perception. When a sophisticated capital provider elects to convert debt into equity rather than seeking repayment, the decision reflects an assessment that equity upside exceeds the risk-adjusted return of maintaining a fixed-income position. Beedie Capital now owns or controls 10.51% of Integra's common shares on a non-diluted basis, having stated that the decision to voluntarily convert reflects their conviction in Integra, the quality of the DeLamar asset, and the value demonstrated in the 2025 Feasibility Study.

For other institutional investors evaluating Integra, the conversion serves as a validation signal. Beedie Capital's decision to become a significant equity holder suggests that internal due diligence supports the company's technical work and development pathway. This form of institutional endorsement may help reduce barriers for subsequent capital raises and strategic discussions.

Alignment of Incentives at a Critical Inflection Point

The transition from creditor to equity holder fundamentally changes incentive structures. Debt holders prioritize capital preservation and interest coverage, which can create tension with equity holders focused on value creation through exploration success or development execution. With the conversion complete, stakeholders now share more closely aligned time horizons and return objectives.

George Salamis underscores the caliber of the team now executing on this foundation:

"Our company's becoming very SilverCrest-like... We have talent. Sean Deissner came over on the finance side, he brings the financial aspect to cash flow management. From a permitting perspective, we brought Dale Kerner over to manage the permitting at DeLamar."

Sean Deissner, VP Finance, previously played a key role in SilverCrest Metals' growth leading to the US$1.7 billion acquisition by Coeur Mining. Dale Kerner serves as VP Permitting.

De-Risking Ahead of Permitting: Why Timing Matters

For late-stage US development projects, permitting represents the primary value gate. The capital requirements, timeline uncertainty, and stakeholder complexity associated with federal and state permitting processes create risks that extend beyond technical or geological considerations. Companies entering this phase with clean balance sheets are better positioned to navigate extended timelines and demonstrate financial credibility to regulators and communities.

Permitting as the Next Value Gate

The National Environmental Policy Act process and associated federal permitting requirements represent multi-year undertakings with significant capital demands. Environmental baseline studies, stakeholder engagement, and regulatory consultation require sustained investment without near-term revenue generation. For companies carrying debt obligations, these requirements can strain balance sheets and force difficult choices between permitting expenditures and other corporate priorities.

Debt-free status also supports permitting credibility in less quantifiable ways. Regulators and community stakeholders evaluate project proponents based on perceived financial stability and long-term commitment. Companies demonstrating balance sheet strength signal their capacity to fulfill reclamation obligations, maintain community programs, and complete projects as proposed.

Policy Environment for US Metals Projects

The Executive Order signed on March 20, 2025, titled "Immediate Measures to Increase American Mineral Production," aims to fast-track permits and expand land access for domestic mineral projects. This policy direction creates a more constructive environment for permitted projects, though permitting timelines remain subject to regulatory processes.

For institutional capital allocators, jurisdictional considerations have become an increasingly important screening criterion. Projects located in established mining districts within the United States may command valuation premiums relative to comparable assets in jurisdictions with higher political or regulatory uncertainty.

Salamis outlines the company's permitting strategy and timeline expectations:

"Our estimation internally is about two years from January, which is when the NEPA process kicks off for us… My second priority is to get the DeLamar feasibility study completed... We've taken out the plant, no sulfides, all oxides, heap leach. Simplified that aspect of the project for permitting, capital outlay, and getting it into operation sooner. "

The NEPA process is expected to commence in January 2026, with the company targeting approximately two years to advance through federal permitting, subject to regulatory timelines.

Asset Base Context: Why Integra's Portfolio Benefits from Financial Clarity

Integra's portfolio combines producing and development assets in a configuration that supports disciplined capital deployment. The cash-generating capacity of existing operations provides internal funding for development activities, reducing reliance on external capital and limiting dilution during the transition from developer to multi-asset producer.

Producing Base Provides Internal Funding

Florida Canyon, Integra's producing gold operation in Nevada, generates the cash flows necessary to support corporate overhead, exploration programs, and development expenditures. The operation has a six-year remaining mine life per the NI 43-101 Technical Report dated July 11, 2024, with potential for extension. Mineral reserves include a stockpile of 1,934 kt at an average grade of 0.19 g/t Au.

Clifford LaFleur, Chief Operating Officer of Integra Resources, describes the operational priorities:

"My number one priority is to work with the site team at Florida Canyon. Looking at ways to expand the life of mine there and then looking at ways that we can increase the efficiencies and help to hopefully increase and maintain our margin over time."

Development Assets with Defined Economics

DeLamar, located in Idaho, completed its Feasibility Study in 2025 and is now advancing federal permitting. The all-oxide heap leach configuration offers advantages in capital efficiency and operating flexibility, with lower initial capital intensity than conventional milling circuits.

Nevada North remains at the Preliminary Economic Assessment stage, representing earlier-stage optionality within the portfolio.

Salamis highlights the potential for resource expansion at Florida Canyon:

"We're firmly of the belief that we can add mine life to Florida Canyon. It came with a six-year mine life. We think that we could add many years beyond that... There's stockpiled material which didn't work at gold prices when they were $1,400–$1,600 but work very well now."

Institutional Validation as a Catalyst for Re-Rating

Institutional capital flows in the mining sector reflect systematic screening criteria that extend beyond resource quality and commodity exposure. Balance sheet composition, capital structure complexity, and governance frameworks influence fund eligibility and portfolio construction decisions.

Why Institutions Care About Capital Structure First

Institutional investors with defined mandates often screen out companies with leverage above specified thresholds or with complex capital structures. The presence of convertible instruments can disqualify otherwise attractive investment candidates from consideration by index funds, sector-focused mandates, and long-only strategies.

The removal of Integra's convertible debenture eliminates this screening barrier. The simplified capital structure may improve institutional eligibility and positions the company for potential index inclusion as market capitalization and liquidity metrics evolve.

EV/oz & Relative Valuation Implications

Enterprise value calculations incorporate debt obligations, and the removal of debt directly improves EV/oz metrics used in peer comparisons. The balance sheet clarity achieved through the Beedie conversion positions Integra more competitively in these comparison frameworks.

Salamis articulates the company's disciplined approach to growth:

"We would ultimately like to acquire another leg of production somewhere else before we stick a shovel in the ground at DeLamar... Looking at the landscape of what's in production in our sweet spot, which is North America, specifically the Great Basin."

The Investment Thesis for Integra Resources

• Balance sheet strength serves as a catalyst, as developers with clean capital structures are better positioned to secure project financing and attract institutional capital.
• Permitting leverage accrues to debt-free companies that enter the regulatory process with greater credibility and financial flexibility.
• Scarcity value exists because few US-based projects combine multi-million-ounce resource scale, completed feasibility economics, and established mining jurisdiction location.
• Operational self-funding through producing assets reduces dilution risk during development cycles and provides internally generated capital for exploration and permitting.
• Institutional alignment through strategic equity holders validates technical work and execution capability.
• Policy support from the March 2025 Executive Order creates a more constructive environment for domestic mineral projects advancing through federal permitting.

Why This Transaction Matters Now

The conversion of Integra's convertible debenture, completed December 22, 2025, establishes a direct relationship between balance sheet de-risking and improved execution capability. With corporate debt eliminated, approximately US$81 million in treasury, and a producing asset supporting reinvestment, the company enters federal permitting from a position of financial strength.

This transaction represents a strategic reset positioning Integra for the permitting and development phases ahead. Beedie Capital's conversion from creditor to 10.51% equity holder validates the company's technical work and DeLamar Feasibility Study at a critical inflection point.

For investors evaluating the US precious metals development space, Integra demonstrates how disciplined financial decisions can unlock optionality. The combination of balance sheet clarity, US jurisdiction, operational cash flow, and institutional validation addresses the primary concerns shaping capital allocation in the current cycle.

TL;DR

Integra Resources completed a strategic debt elimination on December 22, 2025, converting its convertible debenture into equity with Beedie Capital becoming a 10.51% shareholder. The transaction removes balance sheet overhang as the company enters federal permitting for DeLamar, expected to commence January 2026. With approximately US$81 million in treasury, no corporate debt, and cash flow from Florida Canyon operations, Integra enters the NEPA process from a position of financial strength. The move aligns with broader market trends favoring capital discipline, while the March 2025 Executive Order on American mineral production creates a supportive policy backdrop for US-focused developers.

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