Franco-Nevada Partners with i-80 Gold in $250 Million Royalty Financing Deal to Boost Production

Franco-Nevada Partners with i-80 Gold for Major Royalty Financing Deal

Franco-Nevada Corporation, a prominent name in the gold-focused royalty sector, has announced an impressive $250 million net smelter return royalty (NSR) agreement with i-80 Gold Corp as of February 12, 2026. This partnership is designed to bolster a comprehensive recapitalization strategy aimed at transforming i-80 Gold into a mid-tier gold producer in Nevada.

Agreement Overview

The deal establishes an initial royalty rate of 1.5%, which will escalate to 3.0% starting from January 1, 2031. This arrangement will cover i-80 Gold's extensive properties, which include six major projects currently undergoing varying levels of development. The geographical expanse of these projects totals over 250 square kilometers.

Strategic Development Plans

In a detailed three-phase development initiative, i-80 Gold aims to scale its gold production from 150,000 to 200,000 ounces annually in the initial phase, with a target to exceed 600,000 ounces by 2032. The projects include Granite Creek Underground and Archimedes Underground, both of which are integral to achieving the production goals.

Paul Brink, the President and CEO of Franco-Nevada, emphasized the partnership’s potential, stating, "Acquiring i-80 Gold's extensive asset portfolio significantly enhances our presence within the U.S. market, particularly in Nevada, where we foresee substantial growth opportunities."

Financing and Resource Development

The financing through Franco-Nevada will not only bolster i-80 Gold's immediate capital needs for Phase 1 and Phase 2 projects but will also facilitate the refurbishment of the Lone Tree Autoclave. This facility will serve as a crucial processing hub, streamlining operations across multiple underground operations, including Granite Creek and Cove.

Richard Young, the President and CEO of i-80 Gold, shared his excitement about this collaboration, asserting that it aligns with their long-term vision of advancing their gold portfolio. “With Franco-Nevada's foundational capital, we’re poised for a clear trajectory toward producing over 600,000 ounces of gold annually in the early 2030s,” he noted.

Key Project Highlights

1. Mineral Point Heap Leach: This project is of particular note, hosting approximately 4.6 million ounces of gold equivalent measured resources and is expected to significantly contribute to future production increases. The Royalty financing is linked to enhancing feasibility studies and permitting work related to this project.
2. Royalty Structure: The innovative royalty structure is set to maximize cash flow during the capital-intensive phases, allowing i-80 Gold to thrive amidst costs related to development.
3. Resource Potential: A vast mineral resource base underlies this deal, including the Ruby Hill Complex and Lone Tree, which boasts an impressive total of 7.8 million ounces of gold equivalent measured resources. This significant potential indicates robust future growth.

Management Insights

With seasoned leadership including Richard Young and Paul Chawrun, who both bring over 30 years of extensive industry experience, i-80 Gold is well-positioned for success. Their past achievements, particularly in transforming operating models in gold mining, suggest a promising future for this partnership.

Conclusion

Franco-Nevada’s financing agreement with i-80 Gold represents a significant step towards enhancing the operational capacity and production levels of a Nevada-focused gold producer, marking a pivotal moment in the gold mining sector. As this partnership unfolds, it will be interesting to monitor the developments within the mining landscape and how both companies leverage this agreement for growth and stakeholder value.