i-80 Gold Corp. said it has closed the gold prepay and silver purchase and sale portions of its financing package with Orion Mine Finance, leaving it with cash and restricted cash of US$165 million to advance its Nevada mining portfolio.
"The closing of the final pieces of the financing package has strengthened our balance sheet and positioned the company to advance our comprehensive plan to create a Nevada-focused gold mining company,” i-80’s CFO Ryan Snow said in a statement.
Snow added that the firm’s balance sheet allows it to aggressively pursue the 2022 key goals and catalysts it set out in early January.
READ: i-80 Gold intersects high-grade gold in underground drilling at Granite Creek
The $135 million Orion package also provides for access to another $100 million via an accordion feature, which is subject to certain conditions being satisfied, i-80 Gold said in a statement.
The gold prepay and silver purchase and sale agreement include a $45 million deal with affiliates of Orion, which also includes an accordion feature potentially access up to an additional $50 million at i-80's option; and a $30 million silver purchase and sale agreement, including an accordion feature to potentially access an additional $50 million at i-80's option.
The final gold prepay agreement includes an amendment to adjust the quantity of the quarterly deliveries of gold, but not the aggregate amount of gold, to be delivered by i-80 to Orion over the term of the agreement. i-80 will deliver 1,600 troy ounces of gold to Orion for the quarter ending March 31, 2022; 3,100 troy ounces of gold for the quarter ending June 30, 2022, and 2,100 troy ounces of gold per calendar quarter until September 30, 2025, for total deliveries of 32,000 troy ounces of gold.
Under the silver purchase agreement, i-80 will deliver to Orion 100% of the silver production from the Granite Creek and Ruby Hill projects until the delivery of 1.2 million ounces of silver, after which the delivery will be reduced to 50% until the delivery of an aggregate of 2.5 million ounces of silver, after which the delivery will be reduced to 10% of the silver production solely from Ruby Hill Project.
Orion will pay i-80 an ongoing cash purchase price equal to 20% of the prevailing silver price. The silver agreement commences on April 30, 2022.
i-80 Gold is a Nevada-focused mining company developing multiple deposits within its advanced-stage property portfolio, to be processed at the centrally located Lone Tree processing facility and autoclave.
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