i-80 Gold closes $250-million (U.S.) royalty financing

Executive Summary

• i-80 Gold Corp. closed a $250 million royalty financing agreement with Franco-Nevada Corp., receiving $225 million in upfront cash.
• The company utilized the proceeds to extinguish legacy debt, specifically redeeming its 8% secured convertible debentures due 2027 and repaying gold prepay and convertible loan instruments held by Orion Mine Finance affiliates.
• The transaction significantly strengthens the balance sheet, with remaining funds dedicated to advancing the Mineral Point and Archimedes projects.

Key Details

• Franco-Nevada Royalty Financing:
  • Total financing amount: $250 million.
  • Upfront advance at closing: $225 million.
  • Royalty terms: 1.5% life-of-mine (LOM) net smelter return (NSR) on all mineral properties, stepping up to 3.0% LOM NSR effective January 1, 2031.
  • Remaining $25 million payable after expenditure of an initial $25 million for Mineral Point (expected later this year).
• Use of Proceeds:
  • Approximately $165 million used to extinguish legacy debt obligations.
  • $50 million dedicated to advancing Mineral Point infill drilling, engineering, and early-stage permitting in 2026, supporting a prefeasibility study anticipated for completion in 2027.
  • Remaining balance allocated to advancing the Mineral Point open-pit oxide project and construction of the Archimedes underground project.
• Redemption of 2027 Convertible Debentures:
  • Total cash payment: $73 million (including $65 million principal and ~$5.3 million accrued interest).
  • Total accrued interest on debentures: ~$18.7 million.
  • A 4% premium was applied to the principal and accrued interest.
  • ~70% of debentureholders elected to receive accrued interest in common shares, resulting in the issuance of ~8.1 million common shares; the remainder paid in cash.
• Repayment to Orion Mine Finance Affiliates:
  • Total payout: $92 million.
  • Composition: Convertible loan ($50 million principal + ~$20 million accrued interest) and outstanding balance under the gold prepay agreement.
  • Additional consideration: 3 million common shares issued to Orion as part of the early redemption.
  • Note: A silver purchase and sale agreement with Orion remains in place.

Notable Quotes

• "Together, these transactions represent a major step forward in the company's recapitalization, significantly strengthening the balance sheet and positioning i-80 Gold to continue advancing its development plan towards becoming a mid-tier gold producer in Nevada," said Richard Young, president and chief executive officer.