#Canada #Toronto #Franco-Nevada #i-80 Gold #Royalty Financing

i-80 Gold Secures $250 Million Royalty Financing

i-80 Gold Corp, a prominent mining company focused on Nevada, has recently completed a significant financing round of $250 million in royalty transactions with Franco-Nevada. This strategic move aims to bolster the company's financial status and transform it into a mid-tier gold producer in the region.

The Deal Details

On March 16, 2026, i-80 Gold announced the closure of this financing, which involves Franco-Nevada providing $250 million in exchange for a 1.5% net smelter return royalty on all mineral properties owned by the company. This royalty is set to increase to 3.0% starting January 1, 2031. The majority of the financing, approximately $225 million, was allocated to clear various longstanding debt obligations, including an 8% secured convertible debenture set to mature in 2027. Richard Young, the company’s President and CEO, expressed gratitude towards all parties involved in these critical transactions, emphasizing that they represent a pivotal step in i-80 Gold's recapitalization efforts.

Overall, the financing effort not only alleviates the existing debt burden but also provides necessary funding for advancing projects that are vital for the company’s growth. A substantial portion of the funds will be directed towards the Mineral Point open-pit oxide project as well as initiating work on the Archimedes underground project.

Advancements on the Ground

With $50 million earmarked for the Mineral Point project alone, i-80 Gold is moving forward with infill drilling, engineering processes, and necessary permitting steps. A pre-feasibility study is anticipated to conclude by 2027, marking a significant milestone in the company's roadmap. The remainder of the recently acquired funds will aid in expediting the progress of ongoing projects to capitalize quickly on the favorable gold market conditions.

Settling Legacy Debts

One of the primary objectives of this financing round was to address outstanding debts, including the 2027 Convertible Debentures. i-80 Gold managed to redeem these debentures for a total of $73 million. This amount included a principal repayment of $65 million and around $5.3 million in accrued interest. Impressively, 70% of debenture holders opted to receive their accrued interest in common stock, resulting in the issuance of approximately 8.1 million shares in lieu of cash payments.

The company also successfully settled its Gold Prepay Agreement and Convertible Loan Instruments held by Orion Mine Finance, totaling $92 million. This settlement significantly enhances the company’s financial outlook and operational flexibility moving forward. As part of the settlement, 3 million common shares were issued to Orion, complementing the company's strong commitment to restructuring its financial obligations.

The Road Ahead

Following these pivotal developments, i-80 Gold is poised to improve its operational capabilities and expand its gold production portfolio. The company is actively pursuing a hub-and-spoke mining strategy focusing on maximizing operational efficiency while decreasing overall expenditures.

As it continues to execute its plans, i-80 Gold aims to leverage its rich asset base in Nevada to secure a robust position in the mining sector. The resolution of legacy debts and the recent financing puts the company on a promising path towards growth and sustainability.

For ongoing updates and detailed plans regarding their mining portfolio, interested parties can refer to the i-80 Gold website or their market updates. Given the rapidly evolving conditions in the mining industry, stakeholder engagement will be vital to harnessing the opportunities ahead.