i-80 GOLD CORP. (TSX: IAU) (NYSE: IAUX) ("i-80", or the
"Company"), is pleased to announce that it has entered
into an agreement with CIBC Capital Markets as lead underwriter and
sole bookrunner on behalf of a syndicate of underwriters
(collectively, the "Underwriters") pursuant to
which the Underwriters have agreed to purchase on a bought deal
private placement basis, 11,852,000 common shares of the Company
(the "Offered Shares") at a price of $2.70 per
Offered Share for gross proceeds of $32.0 million
(the
"Offering").
The Company has granted the Underwriters an
option, on the same terms and conditions as the Offering,
exercisable until the second business day prior to the closing date
of the Offering, to purchase up to an additional 15% of the
Offering (“Underwriters’ Option”). If the
Underwriters’ Option is exercised in full, the aggregate gross
proceeds to i-80 of the Offering would be $36.8 million.
The net proceeds from the Offering will be used
for the exploration, development and ramp-up (including working
capital) of the Corporation’s material mineral projects and for
general corporate purposes and working capital. Specifically, the
funds raised will be directed towards the upcoming milestone
payment for the Ruby Hill project, drilling expenditures for Ruby
Hill, Granite Creek and Cove, permitting expenses and the further
development of Granite Creek project.
i-80’s cornerstone shareholders, including Orion
Mine Finance and Equinox Gold, and members of the Company’s Board
of Directors and Management Team intend to participate in in the
offering.
The Offering is expected to close on or about
August 1, 2023 (the “Closing Date”) and is subject
to certain conditions including, but not limited to, the receipt of
all necessary corporate and regulatory approvals, including the
approval of the Toronto Stock Exchange and the NYSE American.
On closing of the Offering (assuming the
Underwriters’ Option has not been exercised and net of expenses of
the Offering), the Company is expected to have approximately
US$42.7 million of cash and equivalents and approximately US$47.5
million of restricted cash1. The existing accordion feature with
Orion Mine Finance for up to US$100 million remains in place.
The Offering is being offered by way of private
placement in all provinces of Canada to investors who qualify as
“accredited investors” under Canadian securities legislation or who
are otherwise exempt from prospectus delivery requirements. The
Offering may also be offered in the United States to “qualified
institutional buyers” pursuant to an exemption from registration
under the United States Securities Act of 1933, as amended, and in
such other jurisdictions outside of Canada in accordance with
applicable law.
This news release does not constitute an offer
to sell or a solicitation of an offer to buy any of the securities
described herein in the United States. The securities have not been
and will not be registered under the United States Securities Act
of 1933, as amended (the "U.S. Securities Act") or any state
securities laws and may not be offered or sold within the United
States unless registered under the U.S. Securities Act and
applicable state securities laws unless an exemption from such
registration is available.
1 Cash and equivalents and restricted cash is based on June 30,
2023 balances. FX rate used to calculate pro-form cash is $1.3169
and as at July 18, 2023.
About i-80 Gold Corp.
i-80 Gold Corp. is a
Nevada-focused, mining company with a goal of achieving mid-tier
gold producer status through the development of multiple deposits
within the Company’s advanced-stage property portfolio with
processing at i-80’s centralized milling facilities. i-80 Gold’s
common shares are listed on the TSX and the NYSE American under the
trading symbol IAU:TSX and
IAUX:NYSE. Further information about i-80 Gold’s
portfolio of assets and long-term growth strategy is available at
www.i80gold.com or by email at info@i80gold.com.
For further information, please
contact:Ewan Downie – CEOMatt Gili – President &
COOMatthew Gollat – Executive
Vice-President1.866.525.6450Info@i80gold.comwww.i80gold.com
Cautionary Statement Regarding Forward
Looking Information
Certain statements in this release constitute
"forward-looking statements" or "forward-looking information"
within the meaning of applicable securities laws, including but not
limited to, the timing of and completion of the Offering and use of
proceeds in connection with the Company’s material properties,
receipt of all necessary corporate and regulatory approvals, the
expected participation of Equinox Gold, Orion Mine Finance and i-80
Board of Directors and management in the Offering and the expected
cash and equivalents and restricted cash following the closing of
the Offering. Such statements and information involve known and
unknown risks, uncertainties and other factors that may cause the
actual results, performance or achievements of the company, its
projects, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements or information. Such statements can
be identified by the use of words such as "may", "would", "could",
"will", "intend", "expect", "believe", "plan", "anticipate",
"estimate", "scheduled", "forecast", "predict" and other similar
terminology, or state that certain actions, events or results
"may", "could", "would", "might" or "will" be taken, occur or be
achieved. These statements reflect the Company's current
expectations regarding future events, performance and results and
speak only as of the date of this release.
Forward-looking statements and information
involve significant risks and uncertainties, should not be read as
guarantees of future performance or results and will not
necessarily be accurate indicators of whether or not such results
will be achieved. A number of factors could cause actual results to
differ materially from the results discussed in the forward-looking
statements or information, including, but not limited to: material
adverse changes, unexpected changes in laws, rules or regulations,
or their enforcement by applicable authorities; the failure of
parties to contracts with the company to perform as agreed; social
or labour unrest; changes in commodity prices; and the failure of
exploration programs or studies to deliver anticipated results or
results that would justify and support continued exploration,
studies, development or operations.
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