i-80 Gold Closes Asset Exchange Agreement With Nevada Gold Mines
i-80 Gold Corp. (TSX: IAU) announced on Thursday that it has completed the previously announced asset exchange agreement with Nevada Gold Mines. The move is part of the firm’s comprehensive plan to put up a mining complex in Nevada.
“With the closing of this transaction, we now embark on our aggressive growth plan to achieve our goal of building a prominent mid-tier gold producer,” said i-80 Gold EVP Business and Corporate Development Matthew Gollat. “Becoming one of only three companies in Nevada with infrastructure to process refractory mineralization, i-80 has gained a strategic advantage for long-term mine development.”
Under the agreement, i-80 Gold acquired from Nevada Gold Mines the Lone Tree and Buffalo Mountain gold deposits, and certain processing infrastructure, including an autoclave.
In exchange, the mining firm gave Nevada Gold Mines its 40% equity in the South Arturo property held by its subsidiary Goldcorp Dee, the assigned option to acquire the adjacent Rodeo Creek exploration property held by its subsidiary Au-Reka Gold, contingent $50 million based on production from the Lone Tree property, and substitute bonding arrangement related to the Lone Tree and Buffalo Mountain reclamation obligations.
At the closing of the transaction, Nevada Gold Mines reimbursed i-80 Gold approximately $7.3 million concerning the funds used at South Arturo truck haulage test work and funds that were not used for reclamation activities.
The 50% ownership in the South Arturo mine consolidates Nevada Gold Mines’ 100% equity on the property. On the other hand, the $50-million contingent is disbursed via $25.00 per recovered gold equivalent ounce identified in the feasibility study and $25.00 per ounce of produced gold in excess.
Related to the agreement, i-80 Gold also closed a concurrent private placement financing selling 39,041,515 common shares at $2.62 per share for aggregate gross proceeds of approximately $102,288,769. Nevada Gold Mines purchased 22,757,393 shares in the private placement, effectively owning 9.9% equity in the company.
The firm intends to use the proceeds of the private placement to fund the acquisition of the Ruby Hill mine, as well as the exploration and development of its Nevada mineral projects, the NGM Properties, and the McCoy Cove property, and for general corporate purposes.
i-80 Gold last traded at $3.45 on the TSX.
Information for this briefing was found via Sedar and the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
