I-80 Gold Corp. has secured a financing package of up to $500 million, marking a significant milestone in achieving the company’s recapitalization plans. This financing package, combined with previously disclosed equity offerings, totals over $800 million in funding to support I-80 Gold’s objective of becoming a mid-tier gold producer in Nevada.
The financing package comprises a royalty sale for $250 million and a gold pre-payment facility for up to $250 million. This substantial funding is expected to fully support phase 1 and phase 2 of the development plan, which aims to increase annual gold production to approximately 300,000 – 400,000 ounces from less than 50,000 ounces currently.
Franco-Nevada Corporation has committed to providing $250 million in royalty financing, while National Bank of Canada and Macquarie Bank Limited have committed to providing a gold prepayment facility for an initial advance of $150 million at closing, with an accordion feature for a further $100 million.
The proceeds from the financing package will be used to advance the company’s five gold projects through various development stages, refurbish the Lone Tree plant, and fund resource expansion and infill drilling, as well as for working capital purposes. Additionally, the financing package will be used to extinguish the company’s existing debt obligations of approximately $175 million.
The company also plans to retire and replace its existing convertible debentures with new convertible debentures, on terms more favorable to the company, and potentially sell a non-core asset to complete the recapitalization plan.
The financing package provides flexibility to accelerate the feasibility study and permitting work for the Mineral Point open pit project, which is expected to significantly impact the company’s gold output profile.
I-80 Gold’s CEO, Richard Young, emphasized the company’s de-risked and advanced assets and outlined a clear financial path to fully fund phase 1 and phase 2 of the development plan.
The closing of the financing package is anticipated by the end of the first quarter of 2026, and the company is looking forward to advancing its growth strategy with the support of its long-term financial partners.
The financing package underscores the quality of I-80 Gold’s asset base and the credibility of its execution plan, as noted by the company’s CFO, Ryan Snow.
The press release also mentions key advisors and qualified persons involved in the technical disclosure of the financing package.
As a result of these announcements, the company's shares have moved 3.23% on the market, and are now trading at a price of $1.60. Check out the company's full 8-K submission here.
