Nevada-focused gold mining firm i-80 Gold Corp. revealed that it had received a C$12.5 million injection from major shareholder Equinox Gold (TSX:EQX) Corp following a subscription of shares.
The latter has exercised its right under an agreement from April this year, which allows it to maintain its holding pro-rata in i-80, following the company's recent issue of stock to acquire the Lone Tree and Buffalo Mountain gold deposits and the Ruby Hill mine.
Thus, Equinox has subscribed for 4.8 million shares in i-80 for C$2.62 each for gross proceeds to i-80 of C$12.576 million.
After giving effect to the acquisition of the Lone Tree and Buffalo Mountain gold deposits and the Ruby Hill mine, but before the closing of the subscription, Equinox held around 56 million shares in i-80, or around 24% and around 24.7% on the exercise of warrants.
As a result of the subscription, Equinox now holds around 25.5% of the firm on a non-diluted basis and assuming that the exercise of warrants would have around a 26.2% stake.
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In October this year, the firm reported it had completed its acquisitions of Lone Tree and Buffalo Mountain gold deposits in Nevada, plus certain processing infrastructure from Nevada Gold Mines LLC. It also closed the previously-announced acquisition of the Ruby Hill mine in the US state in the same month.
It noted that Ruby Hill was an open-pit mine and also boasts related infrastructure (mill/heap leach) that includes multiple deposits that collectively represent one of Nevada's largest gold, silver and base metal endowments. The project was acquired from Waterton Nevada Splitter.
i-80 Gold Corp describes itself as a well-financed, Nevada-focused, mining company aiming to achieve mid-tier gold producer status through the development of multiple deposits within its advanced-stage property portfolio to complement existing gold production from the Ruby Hill open pit.
Contact the author at giles@proactiveinvestors.com