i-80 Gold Launches Offering of US$200 Million Convertible Senior Notes
i-80 Gold secures $500 million in non-dilutive capital to bridge the gap to owner-operator status and 400k ounce production.
The most recent news (March 18, 2026) announces a US$200 million offering of convertible senior notes due 2031. This follows the March 16 announcement of the closing of a $250 million royalty financing with Franco-Nevada and the retirement of $165 million in legacy debt (Orion Mine Finance and convertible debentures). Combined with a $150 million gold prepayment facility from National Bank and Macquarie, the company has secured a $500 million financing package. These funds are earmarked to refurbish the Lone Tree processing plant ($430M estimate), advance the Archimedes and Cove underground projects, and accelerate the Mineral Point flagship project.
- Financial De-risking: The recapitalization is a "game changer" for the company's balance sheet. By extinguishing $175M in high-cost legacy debt and replacing it with long-term royalty and convertible debt, i-80 has cleared its 2025-2026 maturity wall.
- Operational Transition: The funding allows the company to move from a high-cost "toll-milling" model ($275-$280/tonne) to an owner-operator model at Lone Tree. This is expected to increase margins by $1,000-$1,500 per ounce once the autoclave is commissioned in Q4 2027.
- Production Growth: The capital fully funds Phase 1 and Phase 2 of the development plan, targeting a production increase from ~32,000 oz (2025) to 300,000-400,000 oz per year.
- Cost of Capital: While the royalty steps up from 1.5% to 3.0% in 2031, the immediate cash infusion avoids massive equity dilution at current low share prices, though the new US$200M convertible notes represent potential future dilution.
i-80 Gold is a Nevada-focused producer aiming to become a mid-tier miner. Its strategy relies on a "hub-and-spoke" model where the Lone Tree Autoclave serves as the central processing hub for high-grade refractory ore from three mines: Granite Creek (producing), Archimedes (under construction), and Cove (development). Mineral Point is the flagship long-term asset, an open-pit project with a massive resource (3.4Moz Au, 104Moz Ag) intended to drive production toward 600,000 oz/year by the early 2030s.