i-80 Announces US$20 Million Gold Prepay Accordion with Orion Mine Finance All dollar figures are in
i-80 Announces US$20 Million Gold Prepay Accordion with
Orion Mine Finance
All dollar figures are in
United States
dollars unless otherwise stated
RENO, Nev.
,
Sept. 20, 2023
/CNW/ -
i-80 GOLD CORP.
(TSX: IAU) (NYSE: IAUX)
("i-80", or the "Company")
, is pleased to
announce that it has entered into an amended and restated gold prepay purchase and sale agreement (the "A&R Gold Prepay
Agreement") with an affiliate of Orion Mine Finance ("Orion"), pursuant to which the Company has received aggregate gross proceeds
of
$20 million
(the "2023 Gold Prepay Accordion") structured as an additional accordion under the existing gold prepay agreement (the
"2021 Gold Prepay Agreement") between the Company and Orion (see the Company's news releases dated
December 14, 2021
and
April 13
, 2022). The existing
$50 million
accordion feature remains in place in the A&R Gold Prepay Agreement.
The proceeds from the 2023 Gold Prepay Accordion are expected to be used to support the development, expansion and working
capital, exploration, and capital expenditure requirements of the Company's portfolio of precious metals and poly-metallic assets.
The 2023 Gold Prepay Accordion will be repaid through the delivery by i-80 to Orion of 13,333 troy ounces of gold over a period of 12
quarters, being 1,110 troy ounces of gold per quarter over the delivery period with the first delivery being 1,123 troy ounces of gold. The
first delivery will occur on
March 31, 2024
, and the last delivery will occur on
December 31, 2026
. Obligations under the A&R Gold
Prepay Agreement, including the 2023 Gold Prepay Accordion, are senior secured obligations of the Company and its wholly-owned
subsidiaries Ruby Hill Mining Company, LLC and Osgood Mining Company, LLC and secured against the Ruby Hill project in
Eureka
County, Nevada
and the Granite Creek project in
Humboldt County, Nevada
.
In connection with the 2023 Gold Prepay Accordion, the Company has issued to Orion warrants to purchase up to 3,750,000 common
shares of the Company (the "New Warrants"). The New Warrants may be exercised at any time at an exercise price of
C$3.17
per
common share until
September 20, 2026
. The New Warrants will be subject to a customary Canadian statutory four month hold period
from the date of issue.
In addition, the Company has received conditional approval of the Toronto Stock Exchange (the "TSX") to extend the expiry date of the
Company's 5,500,000 outstanding common share purchase warrants (the "Existing Warrants") originally issued to an affiliate of Orion in
connection with the 2021 Gold Prepay Agreement. The Existing Warrants, none of which are held by insiders of the Company, are
exercisable for common shares of the Company at a price of
C$3.275
per share and were originally set to expire on
December 13
,
2024. The Company has extended the expiry date of the Existing Warrants by an additional 12 months to
December 13, 2025
, with
such extension being effective on
October 4, 2023
per the rules of the TSX. All other terms of the Existing Warrants, including the
exercise price, remain the same.
The issuance of the New Warrants and the extension of the expiry date of the Existing Warrants remain subject to final acceptance by
the TSX and the NYSE American upon satisfaction of customary post-closing conditions.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities described herein in
the
United States
. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act") or any state securities laws and, accordingly, may not be offered or sold within
the United States
except in
compliance with the registration requirements of the U.S. Securities Act and applicable state securities laws, unless an exemption from
such registration is available.
About i-80 Gold Corp.
i-80 Gold Corp.
is a
Nevada
-focused, mining company with a goal of achieving 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. i-80
Gold's common shares are listed on the TSX and the NYSE American under the trading symbol
IAU:TSX
and
IAUX:NYSE
. Further
information about i-80 Gold's portfolio of assets and long-term growth strategy is available at
www.i80gold.com
or by email at
.
Cautionary Statement Regarding Forward Looking Information
Certain statements in this release constitute "forward-looking statements" or "forward-looking information" within the meaning of
applicable securities laws, including but not limited to, the availability of the additional
$50 million
accordion feature under the A&R Gold
Prepay Agreement, the use of proceeds from the 2023 Gold Prepay Accordion, and the receipt of final acceptance from the TSX and
the NYSE American. Such statements and information involve known and unknown risks, uncertainties and other factors that may cause
the actual results, performance or achievements of the company, its projects, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by such forward-looking statements or information. Such statements
can be identified by the use of words such as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate",
"scheduled", "forecast", "predict" and other similar terminology, or state that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. These statements reflect the Company's current expectations regarding future events,
performance and results and speak only as of the date of this release.
Forward-looking statements and information involve significant risks and uncertainties, should not be read as guarantees of future
performance or results and will not necessarily be accurate indicators of whether or not such results will be achieved. A number of
factors could cause actual results to differ materially from the results discussed in the forward-looking statements or information,
including, but not limited to: material adverse changes, unexpected changes in laws, rules or regulations, or their enforcement by
applicable authorities; the failure of parties to contracts with the company to perform as agreed; social or labour unrest; changes in
commodity prices; and the failure of exploration programs or studies to deliver anticipated results or results that would justify and
support continued exploration, studies, development or operations.
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SOURCE
i-80 Gold Corp
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For further information:
Ewan Downie - CEO, Matt Gili - President & COO, Matthew Gollat - Executive Vice-President,
1.866.525.6450, [email protected], www.i80gold.com
CO: i-80 Gold Corp
CNW 19:29e 20-SEP-23