i-80 Gold announces $85.6 million bought deal

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i-80 Gold Corp. [IAU-TSXV] said it is raising $85.6 million from a bought deal offering of units with proceeds earmarked for development of the company’s properties in Nevada.

It said an underwriting group has pledged to purchase on a bought deal basis, 51.9 million i-80 Gold units, each of which consists of one common share and one half of a share purchase warrant. Each warrant will entitle the holder to buy one common share for $2.15 for 48 months after the offering closes.

The underwriters have been granted an overallotment option to purchase an additional 15% of the base offering, a move that could generate additional proceeds of $12.8 million. That option remains open for 30 days from and including the closing date, which is set to occur on April 25, 2024.

i-80 Gold shares eased 3.1% or $0.06 to $1.85 in early morning trading, Monday. The shares trade in a 52-week range of $3.61 and $1.68.

I-80 Gold is a Nevada-focused mining company which aims to achieve 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.

“In 2024, the company continued to see impressive drill results from Granite Creek, Ruby Hill and McCoy-Cove,’’ said Ryan Snow, i-80’s Chief Financial Officer. “In addition, we increased revenue with gold ounces sold from operations at Granite Creek and residual leaching in addition to tons of mineralized material (oxide) sold under the ore purchase and sale agreements,’’ Snow said.

“We continue to advance exploration and definition drilling at Granite Creek, McCoy-Cove and Ruby Hill, and permitting activities at our projects allowing the company to advance our projects towards the ultimate goal of building a mid-tier Nevada-focused producer.’’

In 2023, the company reported gold sales of 14,613 ounces at a realized price of US$1,940 per ounce, including 3,350 ounces in the fourth quarter.

i-80 holds a 100% interest in the Lone Tree property, which is located in the Battle Mountain Trend. Lone Tree is a past-producing mine with historic production of 4.2 million ounces of gold. It is also host to substantial processing infrastructure, including a whole-ore autoclave, leach pad and CIC circuit, and flotation circuit. It is expected that the Lone Tree Complex will become the hub of i-80’s Nevada operations and the central processing facility for mineralization from the Granite Creek, McCoy-Cove and Ruby Hill underground gold deposits. Infrastructure at Lone Tree has enabled i-80 to position itself as one of only three companies in the U.S. that are capable of processing both oxide and refractory mineralization.

The Ruby Hill property hosts an open pit mine and multiple deposits that contain substantial gold and silver resources and the potential for significant base metal mineralization. Processing infrastructure at Ruby Hill includes a gold oxide processing plant, leach pad and CIC circuit. The company has said it is advancing permitting for an underground mine to be constructed from the current pit.

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