i-80 Gold Corp. (TSX: IAU) (NYSE American: IAUX) has completed a financing package of up to US$500 million to advance its development and recapitalization plans. The financing package consists of (i) a US$250 million royalty sale to Franco-Nevada Corporation, in exchange for a life-of-mine net smelter return royalty, and (ii) a gold prepayment facility for up to US$250 million from National Bank of Canada and Macquarie Bank Limited.
Under the royalty financing, Franco-Nevada agreed to provide US$250 million in exchange for a 1.5% life-of-mine net smelter return royalty, stepping up to a 3.0% life-of-mine net smelter return royalty on January 1, 2031, applying to production across i-80 Gold’s Nevada portfolio, including Granite Creek, Cove, the Ruby Hill Complex, and Lone Tree. The gold prepayment facility with National Bank of Canada and Macquarie provides an initial advance of US$150 million, with an accordion feature for a further US$100 million.
The proceeds of the financing package will be used to advance i-80 Gold’s current projects and to extinguish the company’s existing debt obligations, forming part of a broader recapitalization plan aimed at establishing a fully funded development plan for the company’s objective of creating a mid-tier gold producer in Nevada.
Stikeman Elliott LLP acted as counsel to i-80 Gold with a team that included Donald Belovich, Courtney Wilson, Steven Bennett, Krista Yip-Chuck, Zoey Aliasgari, and Natasha Crasto (Corporate/Commercial); Justin Parappally, Kelly Niebergall, and Joel Dueck (Banking); and Jonathan Willson and Ashley Rasmussen (Tax). Dorsey & Whitney LLP also acted as counsel to i-80 Gold.