RANDALLS GOLD PROJECT PUT OPTIONS Integra Mining Limited (Integra, ASX: IGR) is pleased to announce the purchase of put options at a strike price of A$1,236/A$1,237 covering 28,736 ounces of gold from the first two quarters of production at its 100%-owned Randalls Gold Project development, located 60km south-east of Kalgoorlie.
The total purchase cost of the put options was A$3 million. Of the total put options purchased 13,598 ounces mature on 31 December 2010 and 15,138 ounces mature on 31 March 2011. With put options in place for approximately 70% of the first two quarters of production, the Company has secured a significantly higher minimum gold price than anticipated in the projects financial model without the risk of committing to delivery of physical metal.
Additional committed hedging of a proportion of production will be required prior to finance draw-down, however, the magnitude of this additional hedging is expected to be a minor proportion of Phase 1 gold production and there is no urgency to complete this hedging in the near term.
IGR Price at posting:
25.5¢ Sentiment: Buy Disclosure: Held
