i-80 Gold obtains $500M (U.S.) financing package

Executive Summary

• i-80 Gold Corp. has secured a total financing package of up to $500 million, comprising a $250 million royalty sale with Franco-Nevada Corp. and a $250 million gold prepayment facility with National Bank of Canada and Macquarie Bank Ltd.
• This funding, combined with $300 million in equity offerings from Q2 2025, brings total funding to over $800 million, supporting the company's recapitalization plan targeting $900 million to $1 billion.
• The proceeds will advance five gold projects, refurbish the Lone Tree plant, fund exploration, and extinguish approximately $175 million in existing debt, aiming to increase annual gold production from <50,000 oz to 300,000–400,000 oz in phases 1 and 2.

Key Details

• Royalty Financing (Franco-Nevada):
  • Commitment letter for $250 million in exchange for a 1.5% Life-of-Mine (LOM) Net Smelter Return (NSR) royalty, stepping up to 3.0% LOM NSR on January 1, 2031.
  • $225 million expected available at closing; remaining $25 million expected in 2026.
  • $25 million of the initial advance is allocated to technical and early-stage permitting for the Mineral Point project in 2026.
  • Total of $50 million allocated to Mineral Point advancement in 2026.
  • Royalty applies to all mineral properties: Granite Creek, Cove, Ruby Hill complex, and Lone Tree.
  • Anticipated closing: On or about March 17, 2026.
• Gold Prepayment Facility (National Bank & Macquarie):
  • Initial advance of $150 million at closing, with an accordion feature for an additional $100 million.
  • Obligation to deliver 39,978 ounces of gold over a 30-month period beginning January 2028.
  • Accordion feature: Access to additional $100 million for a 24-month period upon closing, anticipated to be executed in the first half of 2027.
  • Total ounces to be delivered for the full $250 million facility represent ~15% of total gold output from January 2028 to June 2030.
  • Goal to transition the facility into a corporate revolver after Phase 1 completion to finance Mineral Point development.
  • Anticipated closing: End of Q1 2026.
• Use of Proceeds & Strategic Goals:
  • Extinguish existing debt obligations of approximately $175 million.
  • Advance five gold projects through various development stages.
  • Refurbish the Lone Tree plant.
  • Finance resource expansion and infill drilling.
  • Working capital purposes.
• Production Targets & Development Plan:
  • Current production: Less than 50,000 ounces annually.
  • Phase 1 & 2 target: Increase annual production to approximately 300,000 to 400,000 ounces of gold.
  • Phase 3 (Mineral Point) target: Drive company-wide output beyond 600,000 ounces annually starting in 2032.
  • Mineral Point Preliminary Economic Assessment (Q1 2025): 17-year mine life, LOM gold equivalent output of 282,000 ounces annually.
• Remaining Recapitalization Steps:
  • Retire and replace existing convertible debentures with new, more favorable terms.
  • Potential sale of a non-core asset.
  • Target overall recapitalization amount: $900 million to $1 billion.
• Advisers:
  • Royalty Financing: National Bank Capital Markets, SCP Resource Finance LP (financial); Stikeman Elliott LLP, Dorsey & Whitney LLP (legal).
  • Senior Debt/Gold Prepay: ATB Cormark Capital Markets, National Bank Capital Markets (financial); Stikeman Elliott LLP, Dorsey & Whitney LLP (legal).

Notable Quotes

• "In 2024, we announced a three-phase development plan to increase production to more than 600,000 ounces of gold to provide a clear and achievable path to positioning i-80 Gold as a mid-tier gold producer, alongside a plan to recapitalize the company to support this growth strategy... we are now pleased to outline a clear financial path to fully fund phase 1 and phase 2." — Richard Young, President and CEO
• "The commitments from Franco-Nevada, National Bank and Macquarie, following a detailed due diligence process, underscore the quality of our asset base, the depth of our team and the credibility of our execution plan... the financing package represents a cost-competitive, low-dilution opportunity, while providing flexibility around the timing and the availability of capital to support our sequenced development plans across all three phases in our development plan." — Ryan Snow, CFO