Franco-Nevada arranges $250M (U.S.) financing with i-80

Executive Summary

• Franco-Nevada Corp. has entered into an agreement to acquire a $250-million net smelter return (NSR) royalty from i-80 Gold Corp. to support i-80 Gold's recapitalization and development strategy in Nevada.
• The transaction involves an upfront payment of $225 million, with an additional $25 million contingent on the completion of 2026 budgeted spending at the Mineral Point project.
• The royalty covers i-80 Gold's entire Nevada portfolio, including six projects, with a rate that steps up from 1.5% to 3.0% in 2031, aligning with i-80 Gold's plan to scale production from ~150,000 oz Au in Phase 1 to over 600,000 oz Au by 2032.

Key Details

• Transaction Value: Total royalty financing of $250 million.
• Payment Structure:
  • Upfront proceeds of $225 million upon closing.
  • Deferred payment of $25 million subject to completion of 2026 budgeted spending at Mineral Point.
• Royalty Terms:
  • Initial rate: 1.5% of net smelter returns (NSR) on all minerals produced.
  • Step-up rate: Increases to 3.0% of NSR beginning January 1, 2031, in perpetuity.
  • Scope: Applies to all of i-80 Gold's material properties, including after-acquired properties within a one-mile area of interest.
  • Registration: Registered on title as an interest in land.
• Target Portfolio (i-80 Gold):
  • Covers a 256-square-kilometre land package in Nevada.
  • Includes six projects: Granite Creek underground (operating), Archimedes underground (development), Mineral Point heap leach (study), Granite Creek open pit (study), Cove underground (study), and Lone Tree open pit (study).
  • Total Mineral Resources: 7.8 Moz AuEq Measured & Indicated (M&I) and 8.6 Moz AuEq Inferred.
• Production Timeline & Targets:
  • Phase 1 (2028-2029): Production increases to 150,000–200,000 oz Au annually from Granite Creek and Archimedes underground, processed at the Lone Tree autoclave.
  • Phase 2 (2030-2031): Production increases to 300,000–400,000 oz Au annually, adding Cove underground and Granite Creek open pit.
  • Phase 3 (2032+): Production increases to 600,000+ oz Au annually, adding Mineral Point.
• Mineral Point Specifics:
  • Hosts 4.6 Moz AuEq M&I resources and 3.2 Moz AuEq inferred resources.
  • Expected production: 282,000 oz AuEq per year.
  • Part of the royalty financing is tied to Mineral Point technical and permitting work.
• Financing Source: Franco-Nevada intends to finance the transaction from cash on hand. As of Sept 30, 2025, Franco-Nevada held $900 million in cash and cash equivalents and marketable securities, with $1.9 billion in available capital.
• Closing Conditions: Subject to customary conditions, expected to close in March 2026.
• Additional Rights: Franco-Nevada retains a right of first offer on future streams, royalties, and similar interests related to i-80 Gold's assets.

Notable Quotes

• Paul Brink, President and CEO of Franco-Nevada: "We are pleased to add i-80 Gold's extensive portfolio of assets in Nevada to our U.S. portfolio and to partner with i-80 to advance their development plans... we look forward to partnering with them as they unlock what we believe will be one of largest gold operations in Nevada."
• Richard Young, President and CEO of i-80 Gold: "We are thrilled to have Franco-Nevada as a partner who shares our long-term vision of advancing our gold portfolio to create a Nevada-focused mid-tier gold producer... we now have a clear and achievable path to over 600,000 ounces of gold production annually by the early 2030s."