i-80 Gold (TSX: IAU) has cleared its final major hurdle in a massive capital restructuring, closing a $250 million gold prepayment facility that secures the company’s path toward becoming a mid-tier producer.
The financing, arranged with National Bank of Canada and Macquarie Bank, provides an immediate $150 million cash injection. An additional $100 million accordion feature remains on the table, which the company expects to tap in early 2027.
The deal marks the finish line for a sophisticated 18-month recapitalization effort. In total, i-80 has assembled a war chest exceeding $1 billion through a mix of equity, convertible notes, and royalty financing.
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With the balance sheet now bolstered, CEO Richard Young is pivoting from fundraising to execution. The company’s strategy centers on a hub-and-spoke model in Nevada, using its Lone Tree facility as a central processing heart for several high-grade satellite mines.
“We believe this significantly derisks the Company and positions us to fully finance our growth plans, financing five gold projects and the Lone Tree centralized autoclave processing facility. With the financing now complete, we are fully focused on executing on our industry-leading project pipeline in Nevada and delivering significant value to all our stakeholders,” commented Young on the conclusion of the recapitalization effort.
The capital is earmarked for the first two phases of development. This includes bringing three underground mines—Granite Creek, Archimedes, and Cove—into production, alongside the Granite Creek open pit oxide project and the refurbishment of the Lone Tree autoclave. If the timeline holds, i-80 expects to ramp up from its current output of less than 50,000 ounces to a target of 300,000 to 400,000 ounces of gold annually by 2031.
By securing fixed-cost financing and prepayments now, the company is betting it can generate enough internal cash flow from its early phases to self-fund Phase 3, which includes the Mineral Point open-pit project.
For investors, the closure of this facility de-risks a story that was previously shadowed by funding uncertainty.
As per the terms of the gold prepay facility, i-80 is required to deliver 39,978 ounces of gold over a 30 month period, with deliveries beginning in January 2028.
i-80 Gold last traded at $1.81 on the TSX.
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