Published: September 15, 2021 |

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Canada-based i-80 Gold has signed an asset exchange deal with Nevada Gold Mines (NGM) with an aim to create a major mining complex in the state of Nevada.

In this regard, the Canadian miner will acquire some processing infrastructure and the Lone Tree and Buffalo Mountain gold deposits from Nevada Gold Mines. The processing infrastructure, which includes an autoclave, is presently in care and maintenance.

In return, Nevada Gold Mines will acquire i-80 Gold’s 40 percent stake in the South Arturo Property. This will give the company full ownership of South Arturo, thereby gaining the flexibility to pursue potential operational synergies with its other assets in Nevada.

Apart from that, Nevada Gold Mines will have a low-cost option to acquire the adjacent Rodeo Creek exploration property from i-80 Gold.

Nevada Gold Mines, which is a joint venture between Barrick Gold and Newmont, will also be entitled to a contingent consideration of up to $50 million. This will be based on production from the Lone Tree asset.

In a separate deal, i-80 Gold has agreed to buy the Ruby Hill gold mine in Eureka County, Nevada from affiliates of Waterton Global Resource Management.

“These transformational acquisitions result in a significant increase in the company’s mineral resource base, and position i-80 to become one of the largest gold producers in the state of Nevada with the capacity to process refractory and oxide mineralization,” said I-80 Gold CEO Ewan Downie.

“Importantly, i-80 gains a strategic advantage becoming one of only three companies in Nevada with infrastructure to process refractory mineral resources once the Lone Tree facility has been retrofitted to suit the company’s deposits,” added Downie.

Additionally, the Canadian miner said that Nevada Gold Mines will acquire up to 9.9 percent interest in the company’s new treasury common shares for a price of up to $50 million through a private placement.

“This is a win-win transaction for both Nevada Gold Mines and i-80,” said Nevada Gold Mines Executive Managing Director Greg Walker.

“Through the acquisition of Lone Tree, an asset not being utilized by NGM has become a transformational asset for i-80. In return, NGM’s acquisition of i-80’s 40 percent of the South Arturo Joint Venture secures additional ounces with both open-pit and underground optionality for our Carlin operation,” added Walker.

Equinox Gold, which holds a stake in i-80 Gold, also plans to take part in the latter’s equity private placement.

I-80 Gold also announced entering into a non-binding term sheet with Orion Mine Finance for securing financing from the latter for up to $240 million to support its acquisition and development activities.

The closing of the asset exchange deal is subject to various conditions, which includes the approval from the Toronto Stock Exchange.

Source: NS Energy

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. The company expects to close the acquisitions of the Lone Tree Complex and the Ruby Hill Project in H2 2021 and is advancing an underground development program for the Granite Creek Project. i-80 is well financed with more than $70.1 million in cash and has recently signed financing agreements with Nevada Gold Mines and a non-binding term sheet with Orion Mine Finance.

To stop by i-80 Gold’s website, CLICK HERE

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