i-80 Gold Signs Asset Exchange Agreement With Nevada Gold Mines, Eyes A Nevada Mining Complex

i-80 Gold Corp. (TSX: IAU) announced this morning its comprehensive plan to put up a mining complex in Nevada. The mining firm has entered into a definitive exchange agreement with Nevada Gold Mines.

The agreement will see the company acquire certain processing infrastructure, and the Lone Tree and Buffalo Mountain properties from Nevada Gold Mines, a joint venture of gold producers Barrick Gold Corporation and Newmont Corporation.

In exchange, i-80 Gold will give 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.

The 50% ownership in the South Arturo mine will consolidate 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 will be conducting a private placement financing at $2.62 per share, in which Nevada Gold Mines committed to purchasing 9.9% non-diluted equity not exceeding $50 million. The offering is part of a larger non-brokered private placement of up to $90 million in proceeds at the same issue price.

The company also entered into a non-binding term sheet with Orion Mine Finance for a comprehensive $140 million financing package, with an accordion feature of up to an additional $100 million.

Completing its series of agreements pursuant to the planned Nevada mining complex, the mining firm entered into an acquisition agreement with Waterton Global Resource Management to purchase the Ruby Hill mine for up to $150 million on a three-year milestone payment basis.

According to the acquisition terms, i-80 Gold can elect to pay up to 50% of the milestone payments in company shares provided that it will not exceed 9.99% equity. The company also has an early payment option that may reduce the total acquisition cost to approximately $130 million.

The firm expects to close the acquisitions in the second half of 2021, subject to regulatory approvals and customary closing conditions.

i-80 Gold last traded at $2.70 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.

Video Articles

Baselode Energy To Acquire Forum Energy: The Merger Of Equals Deal

TriStar Gold: The Revised Castelo de Sonhos Prefeasibility Study

Gold is Up 30%, But the Real Bull Market is Only Starting Now! | Adrian Day

Recommended

ESGold To Expand Mine Building At Montauban In Advance Of Gold & Silver Production

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Related News

i-80 Gold Revised PEA Outlines $271 Million NPV For Cove Project

i-80 Gold (TSX: IAU) has updated a preliminary economic assessment for its Cove Project, found...

Thursday, February 13, 2025, 09:18:42 AM

i-80 Gold Closes ATM Program After Raising $25.1 Million

i-80 Gold (TSX: IAU) has closed out its at-the-market equity program after having been stuck...

Wednesday, March 12, 2025, 09:42:57 AM

i-80 Gold Posts Wider Loss, Negative Cash Flow in Q1 2025 Despite Revenue Jump

i-80 Gold (TSX: IAU) closed the first quarter of 2025 with a net loss of...

Monday, May 5, 2025, 10:34:00 AM

i-80 Gold Completes Ruby Hill Mine Acquisition For Up To US$150 Million

Days after closing the Lone Tree complex acquisition, i-80 Gold Corp. (TSX: IAU) announced today...

Monday, October 18, 2021, 09:22:00 AM

i-80 Gold Begins Underground Exploration Plans At McCoy-Cove Property

i-80 Gold Corp. (TSX: IAU) reported this morning that it is pushing through with its...

Monday, November 22, 2021, 09:18:00 AM