i-80 Announces US$20 Million Gold Prepay Accordion with Orion Mine Finance
- The Company has entered into an amended and restated gold prepay purchase and sale agreement with Orion Mine Finance, receiving $20 million in gross proceeds.
- The proceeds will be used to support the development, expansion, and working capital of the Company's portfolio of assets.
- The Company has extended the expiry date of its outstanding common share purchase warrants by 12 months.
- None.
All dollar figures are in
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
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
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
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
i-80 Gold Corp. is a
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
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