RENO,
Nev., Dec. 31, 2024 /CNW/ - i-80 GOLD
CORP. (TSX: IAU) (NYSE American: IAUX) ("i-80 Gold", or
the "Company") announces that pursuant to its press
release on November 12, 2024, it has
completed the first phase of its recapitalization entering into
agreements to defer the December 2024
Gold Prepay and January 2025 Silver
Purchase Agreement deliveries until March
31, 2025 as part of an amendment of those agreements with
Orion Mine Finance ("Orion").
Highlights
- The gold prepay delivery scheduled for December 31st, 2024, and the Silver
Purchase Agreement delivery scheduled for January 15, 2025, will be deferred to
March 31st,
2025
- The recapitalization plan is well underway with current
and potential new lenders, targeting completion on or about
March 31st,
2025
- The Company plans to release updated Preliminary Economic
Assessments ("PEAs") for all five gold projects in the
portfolio in the first quarter of 2025
- The Company is also planning to release an updated
technical report for Lone Tree which will update the current
mineral resource estimate
- A class III engineering study detailing the capital
budget for refurbishment of the autoclave at Lone Tree is expected
in the third quarter of 2025
The Company is encouraged by the ongoing
support of i-80 Gold's longtime shareholder, Orion, for its
recapitalization plan. The priority has been the deferral of the
upcoming gold and silver deliveries including 3,210 ounces of gold
and 400,000 ounces of silver, scheduled for delivery on
December 31, 2024, and January 15, 2025, respectively. Orion and i-80
Gold have agreed to defer such deliveries to March 31, 2025, subject to i-80 Gold's compliance
with the Waiver Agreements (as defined below), including the
conditions described below. Additionally, Orion has agreed to
extend the expiry date of its convertible credit agreement dated
December 13, 2021 (the "Orion
Convertible Loan") by six months from December 31, 2025, to June
30, 2026.
In connection with the gold and silver
delivery deferrals and the extension to the Orion Convertible Loan
(collectively, the "Waiver Agreements"), i-80 Gold has
agreed to issue to Orion five million common share purchase
warrants priced at a 25% premium to i-80 Gold's five day volume
weighted average share price as of the date the Orion Convertible
Loan is amended and restated which is expected to occur on or prior
to January 15, 2025 (the "2025
Orion Warrants"). The 2025 Orion Warrants are expected to have
a four-year term. In addition, i-80 Gold and Orion have
agreed to enter into an offtake agreement by the end of January
(the "Offtake Agreement"). The Offtake Agreement is expected
to have similar terms to the existing agreement and commence once
the current offtake agreement with Deterra Royalties Limited
expires at the end of December 2028.
The Waiver Agreements and the issuance of the 2025 Orion Warrants
are subject to ongoing conditions, including the requirements and
approval of the Toronto Stock Exchange and the NYSE American, the
entering into of the Offtake Agreement, the amendment and
restatement of the Orion Convertible Loan, as well as a requirement
to satisfy minimum cash requirements, as amended by these Waiver
Agreements, through March 31,
2025.
The recapitalization plan is well underway,
as the Company is working with current partners as well as
potential new debt and equity providers, to restructure the
existing debt and provide sufficient capital to develop i-80 Gold's
portfolio of assets. i-80 Gold plans on completing the
recapitalization plan by or around the end of the first quarter of
2025. The completion of the recapitalization will be a significant
step in the advancement of the Company's robust portfolio of
projects.
"Over the course of the fourth quarter of
2024, our two priorities have been to establish the new development
plan to develop the portfolio of high-grade gold projects in
Nevada and restructure
the Company's balance sheet to allow for the execution of the
new development plan. We are very pleased with Orion's cooperation
and support in the deferral of the upcoming gold and silver
commitments to allow us to advance our recapitalization plan and
enable us to develop i-80 Gold into a mid-tier gold producer,"
commented Richard Young, Chief
Executive Officer of i-80 Gold.
i-80 Gold has a robust portfolio of
projects and is the third largest resource holder in the state of
Nevada. If viewed as a standalone
country, Nevada would be among the
largest producers of gold in the world. Additionally, i-80 has one
of only five refractory processing facilities in the United States, with a fully permitted
autoclave located at the Lone Tree Complex. Lone Tree is
strategically located adjacent to the highway and railway. Lone
Tree has the capacity to become the hub for i-80 Gold's
Nevada operations, thereby
unlocking the value of its undeveloped high grade gold
mineralization.
The Company plans to have a catalyst-rich
first quarter of 2025, with the anticipated announcement of PEAs on
all five of i-80 Gold's most advanced gold projects, among other
exploration and development catalysts. In the first quarter of 2025
the Company plans on releasing PEAs on the following
Projects:
- Granite Creek (underground and open pit
combined)
- Ruby Hill Complex (Archimedes underground and Mineral
Point open pit combined)
- McCoy-Cove underground project
Mineral Point is a large bulk tonnage heap
leach project which has the potential to become i-80 Gold's largest
project. An update to the Granite Creek PEA for the open pit
component is also expected to be released in late 2025.
Simultaneously the Company will be
advancing feasibility studies for Granite Creek underground and
McCoy-Cove underground, both of which are anticipated to be
released in the fourth quarter of 2025.
Additionally, a class III engineering study
or a feasibility-level engineering study on the refurbishment of
the autoclave at Lone Tree is expected to be published in the
second half of 2025. Subject to the results of this latest
refurbishment study, the Lone Tree autoclave is expected to serve
as a central processing facility for the Company's three
underground projects, Granite Creek, Archimedes and
McCoy-Cove.
Lastly, Mr. Greg
Smith is stepping down from i-80 Gold's Board of Directors,
effective December 31, 2024,
following the divestiture of i-80 Gold shares by Equinox Gold Corp.
("Equinox"). "Greg has been a valued member of our Board. We thank
him for his dedication and contribution to i-80 Gold and wish him
well," said Ron Clayton, Chairman of
the Board of Directors. Mr. Smith was Equinox's nominee to the
board of directors of i-80 Gold, pursuant to the right provided
under a support agreement with the Company dated April 7, 2021. Due to the divestment by Equinox
of its share of i-80 Gold, representation on the i-80 Gold board is
no longer required.
This news release does not constitute an
offer to sell or a solicitation of an offer to buy of any
securities in the United States.
The securities described herein 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 except in compliance with the registration
requirements of the U.S. Securities Act and applicable state
securities laws or pursuant to available exemptions
therefrom.
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.
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, timing and ability to satisfy the
conditions under the Waiver Agreements, including obtaining receipt
of required approvals of the Toronto Stock Exchange and NYSE
American, completion of the transactions contemplated under the
Waiver Agreements, timing, completion and success of the
recapitalization plan and ability to complete the restructuring of
the existing debt and provide sufficient capital to develop the
Company's assets, results of operation outcomes and timing of
updated technical studies at the Company's mineral projects
including updated PEAs for each of Granite Creek and McCoy Cove, new PEAs for Ruby Hill and Mineral Point as well as
Feasibility Studies for Granite Creek underground and McCoy-Cove
underground and a feasibility level study on the refurbishment of
the autoclave at Lone Tree, timing to advance mineral projects to
production and advance permitting and feasibility work on its
mineral projects and future production, development and exploration
results, the expectation that Lone Tree will become the hub of
i-80's Nevada operations and the
central processing facility for gold mineralization from the
Granite Creek, McCoy-Cove and Ruby
Hill underground gold deposits, as well as expected timing
for completion of i-80 Gold's refinancing plan. 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 labor 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. For a more detailed discussion
of such risks and other factors that could cause actual results to
differ materially from those expressed or implied by such
forward-looking statements, refer to i-80's filings with Canadian
securities regulators, including the most recent Annual Information
Form, available on SEDAR+ at www.sedarplus.ca.
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SOURCE i-80 Gold Corp
