i-80 Gold Corp, together with its wholly-owned Goldcorp Dee LLC and Au-Reka Gold LLC subsidiaries, said it has completed its acquisitions of the Lone Tree and Buffalo Mountain gold deposits in Nevada, plus certain processing infrastructure, from Nevada Gold Mines LLC.
Nevada Gold Mines will receive up to US$50 million based on production from the Lone Tree property, as well as Goldcorp Dee's 40% ownership in the South Arturo property and assignment of Au-Reka's option to acquire the adjacent Rodeo Creek exploration property.
“With the closing of this transaction, we now embark on our aggressive growth plan to achieve our goal of building a prominent mid-tier gold producer,” said i-80 Gold executive vice-president of business and corporate development, Matthew Gollat, in a statement.
READ: i-80 Gold to acquire Lone Tree, processing facilities, Buffalo Mountain and Ruby Hill to create Nevada mining complex
“Becoming one of only three companies in Nevada with infrastructure to process refractory mineralization, i-80 has gained a strategic advantage for long-term mine development,” Gollat added.
The company noted that a toll processing agreement is a key component to this transaction, which will provide the ability for i-80 Gold to process ore from its Granite Creek, McCoy-Cove, and Ruby Hill operations.
In addition, Nevada Gold Mines reimbursed i-80 about US$7.3 million for amounts previously advanced by i-80 for the autonomous truck haulage test work completed at South Arturo and for funds advanced by i-80 that were not used for reclamation activities.
As well, i-80 Gold has announced the closing of a concurrent non-brokered private placement, consisting of 39,041,515 i-80 Gold common shares at a price of C$2.62 per share, for gross proceeds of about C$102,288,769.
Nevada Gold Mines has subscribed for 22,757,393 common shares from the private placement, giving it a 9.9% ownership stake in i-80 Gold.
Certain i-80 Gold directors, officers, and other company insiders have subscribed for a total of 615,802 common shares of the private placement.
i-80 Gold said it intends to use the net proceeds from the financing to fund the acquisition of the Ruby Hill mine, the exploration and development of its Nevada mineral projects, including the Ruby Hill mine, the Nevada Gold Mines properties, and the McCoy Cove property, and for general corporate purposes.
All securities issued as part of the private placement are subject to a hold period that will expire on February 15, 2022.
i-80 Gold is a well-financed gold producer and developer with a portfolio of advanced-stage gold projects in Nevada.
Contact Sean at sean@proactiveinvestors.com