i-80 Gold Corp said it has completed its previously-announced acquisition of the Ruby Hill mine in Nevada.
The company noted Ruby Hill, an open-pit mine and related infrastructure (mill/heap leach) that includes multiple deposits that collectively represent one of Nevada's largest gold, silver and base metal endowments, was acquired from Waterton Nevada Splitter, LLC.
“The recent transactions to acquire Ruby Hill, Lone Tree and Buffalo Mountain not only make i-80 one of the largest holders of gold and silver resources in the United States, but also positions the company to become one of Nevada's most prominent producers with substantial processing infrastructure including an autoclave,” i-80 Gold CEO Ewan Downie said in a statement.
READ: i-80 Gold closes its acquisitions of the Lone Tree and Buffalo Mountain deposits in Nevada
“We are now in a position to begin accelerating mine development at multiple sites with the interim processing agreements entered into with Nevada Gold Mines and will focus on executing our plan to build a mid-tier gold producing company,” Downie added.
With its newly-acquired Nevada assets, i-80 Gold now has a 6.3 million ounce Measured & Indicated gold resource, at 0.8 grams per tonne (g/t), plus a 104.5 million ounce Measured & Indicated silver resource at 12.7 g/t, as well as an 8.4 million ounce Inferred gold resource, at 1.2 g/t, plus a 76.5 million ounce Inferred silver resource at 10.4 g/t.
The company acquired Ruby Hill for a purchase price of US$75 million in cash and 3,191,358 i-80 Gold common shares (valued at US$8 million), plus future milestone payments of up to US$67 million. The milestone payments are subject to an early payment option that could reduce total milestone payments to US$47 million.
i-80 Gold added that it is now embarking on its plan to advance multiple projects to production over the next several years.
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