i-80 Gold Completes Further Steps in Support of its Recapitalization Plan
i-80 Gold Corp (TSX: IAU) (NYSE: IAUX) has completed key steps in its recapitalization plan, including amendments to its $65 million convertible debenture indenture and closing of a concurrent private placement. The company has finalized a supplemental indenture that revises conversion price terms for accrued interest, establishes security ranking for the McCoy-Cove Project, and introduces a 104% premium redemption right.
The amendments include new conversion price calculations with a 15% discount based on trading prices on TSX and NYSE American. Additionally, i-80 Gold has closed a concurrent private placement of 997,871 common shares at C$0.80 per share, raising approximately C$798,297 from company insiders. The private placement proceeds will be used for working capital and general corporate purposes.
i-80 Gold Corp (TSX: IAU) (NYSE: IAUX) ha completato passaggi chiave nel suo piano di ricapitalizzazione, inclusi emendamenti al suo contratto di obbligazione convertibile da 65 milioni di dollari e la chiusura di un collocamento privato concomitante. L'azienda ha finalizzato un atto supplementare che rivede i termini del prezzo di conversione per gli interessi maturati, stabilisce il ranking di sicurezza per il Progetto McCoy-Cove e introduce un diritto di riscatto con un premio del 104%.
Le modifiche includono nuovi calcoli del prezzo di conversione con uno sconto del 15% basato sui prezzi di mercato su TSX e NYSE American. Inoltre, i-80 Gold ha chiuso un collocamento privato concomitante di 997.871 azioni ordinarie a C$0,80 per azione, raccogliendo circa C$798.297 da parte di insider aziendali. I proventi del collocamento privato saranno utilizzati per il capitale circolante e per scopi aziendali generali.
i-80 Gold Corp (TSX: IAU) (NYSE: IAUX) ha completado pasos clave en su plan de recapitalización, incluidos enmiendas a su contrato de obligación convertible de 65 millones de dólares y el cierre de una colocación privada concurrente. La compañía ha finalizado un contrato suplementario que revisa los términos del precio de conversión para los intereses acumulados, establece la clasificación de seguridad para el Proyecto McCoy-Cove e introduce un derecho de redención con una prima del 104%.
Las enmiendas incluyen nuevos cálculos del precio de conversión con un descuento del 15% basado en los precios de negociación en TSX y NYSE American. Además, i-80 Gold ha cerrado una colocación privada concurrente de 997,871 acciones comunes a C$0.80 por acción, recaudando aproximadamente C$798,297 de insiders de la empresa. Los ingresos de la colocación privada se utilizarán para capital de trabajo y propósitos corporativos generales.
i-80 Gold Corp (TSX: IAU) (NYSE: IAUX)는 6,500만 달러 규모의 전환사채 계약 수정 및 동시 사모 배치 완료를 포함하여 자본 재조정 계획의 주요 단계를 완료했습니다. 이 회사는 이자 발생에 대한 전환 가격 조건을 수정하고, McCoy-Cove 프로젝트에 대한 담보 순위를 설정하며, 104% 프리미엄 상환 권리를 도입하는 보충 계약을 최종화했습니다.
수정사항에는 TSX 및 NYSE American의 거래 가격을 기준으로 15% 할인된 새로운 전환 가격 계산이 포함됩니다. 또한, i-80 Gold는 C$0.80의 가격으로 997,871주를 동시 사모 배치하여 약 C$798,297를 회사 내부자들로부터 모금했습니다. 사모 배치 수익금은 운영 자본 및 일반 기업 목적에 사용될 것입니다.
i-80 Gold Corp (TSX: IAU) (NYSE: IAUX) a achevé des étapes clés de son plan de recapitalisation, y compris des amendements à son contrat d'obligation convertible de 65 millions de dollars et la clôture d'un placement privé concomitant. L'entreprise a finalisé un acte complémentaire qui révise les conditions de prix de conversion pour les intérêts accumulés, établit le classement de sécurité pour le projet McCoy-Cove et introduit un droit de rachat avec une prime de 104%.
Les amendements incluent de nouveaux calculs de prix de conversion avec une remise de 15% basée sur les prix de négociation sur TSX et NYSE American. De plus, i-80 Gold a clôturé un placement privé concomitant de 997 871 actions ordinaires à 0,80 C$ par action, levant environ 798 297 C$ de la part des initiés de l'entreprise. Les produits de ce placement privé seront utilisés pour le fonds de roulement et des fins corporatives générales.
i-80 Gold Corp (TSX: IAU) (NYSE: IAUX) hat wichtige Schritte in seinem Rekapitalisierungsplan abgeschlossen, einschließlich Änderungen an seiner 65 Millionen Dollar umfassenden Wandelanleihe und dem Abschluss einer gleichzeitigen Privatplatzierung. Das Unternehmen hat eine ergänzende Urkunde finalisiert, die die Umwandlungspreisbedingungen für aufgelaufene Zinsen überarbeitet, die Sicherheitenrangfolge für das McCoy-Cove-Projekt festlegt und ein Rückkaufsrecht mit einem Aufschlag von 104% einführt.
Die Änderungen umfassen neue Berechnungen des Umwandlungspreises mit einem Rabatt von 15% basierend auf den Handelspreisen an der TSX und NYSE American. Darüber hinaus hat i-80 Gold eine gleichzeitige Privatplatzierung von 997.871 Stammaktien zu einem Preis von C$0,80 pro Aktie abgeschlossen und damit etwa C$798.297 von Unternehmensinsidern gesammelt. Die Erlöse aus der Privatplatzierung werden für Betriebskapital und allgemeine Unternehmenszwecke verwendet.
- Directors and officers participation shows confidence in company strategy
- New redemption right provides flexibility with 104% premium option
- Improved near-term liquidity through private placement
- Enhanced refinancing flexibility through debenture amendments
- Shares issued at discount in private placement
- Dilution from additional share issuance
- Increased complexity in convertible debenture terms
Insights
i-80 Gold's announced steps in its recapitalization plan reveal important financial engineering efforts to address near-term liquidity challenges. The amendments to the $65 million convertible debenture provide the company with increased flexibility, particularly through revised conversion terms for interest payments that enable equity conversion at 15% discounts to market prices. This mechanism potentially allows i-80 to preserve cash by converting interest obligations to equity when necessary.
The newly secured redemption right at a 104% premium gives management an exit strategy from these debt obligations if more favorable financing becomes available. Most telling is the subordination clause regarding the McCoy-Cove Project security, suggesting the company is positioning itself to potentially secure additional financing against this asset in the future.
The concurrent private placement of 997,871 shares raising only
These financial maneuvers reflect standard capital restructuring tactics for mining companies in development stages, providing i-80 Gold with incremental financial flexibility while preserving optionality for its development assets. Investors should view this as part of ongoing balance sheet management rather than a transformative recapitalization.
Previously Announced Amendments to Convertible Debenture Indenture and Closing of Concurrent Private Placement Completed
This news release constitutes a "designated news release" for the purposes of the Company's prospectus supplement dated August 12, 2024, to its short form base shelf prospectus dated June 21, 2024
The completion and closing of each of Indenture amendments and the Concurrent Private Placement support i-80 Gold's recapitalization plan by improving its near-term liquidity as well as facilitating its refinancing flexibility as it works towards a recapitalization plan intended to better align its capital structure with the Company's long-term growth strategy and development plan.
First Supplemental Indenture to Convertible Debenture Indenture
The Company is pleased to announce that it has entered into a first supplemental indenture to the Indenture (the "Supplemental Indenture") with the TSX Trust Company (the "Trustee") to finalize the proposed amendments to the terms of the terms of the Indenture as previously disclosed in its prior press release on January 13, 2025.
On February 22, 2023, the Company closed a private placement offering of
On October 15, 2024, debenture holders representing not less than 66 2/
On February 28, 2025, the Committee delivered to the Company and the Trustee an extraordinary resolution approved by the Committee, acting on behalf of the debenture holders, by instrument in writing effective, to approve the amendments to the Indenture as set forth in the Supplemental Indenture and to authorize and to direct the Trustee to enter into and execute the Supplemental Indenture (the "Amending Resolution").
The Supplement Indenture amends the Indenture, to among other things, provide as follows:
(i) that the definitions relating to the conversion prices applicable to the conversion of the accrued and unpaid interest on the Convertible Debentures were revised to provide:
(a) the conversion price applicable to the a debenture holder's right to elect to convert outstanding and accrued interest on the Convertible Debentures is equal to the volume weighted average price of i-80 Gold's common shares on the Toronto Stock Exchange ("TSX") during the five trading days immediately preceding the date of the debenture holder's election notice, less a discount of
(b) the conversion price applicable to the Company' right to elect to convert outstanding and accrued interest on the Convertible Debentures is equal to equal to the greater of *
(ii) that the Company's right to grant security against the McCoy-Cove Project would rank subordinate to the security granted to the debenture holders; and
(iii) the Company with a redemption right in respect of all of the outstanding Convertible Debentures which allows the Company to redeem, in its sole discretion, all of the outstanding Convertible Debentures for cash at a
The description of the Supplemental Indenture in this press release, is a summary only, and is not exhaustive nor is it intended as a substitute for reviewing the Supplemental Indenture and is qualified in its entirety by reference to the full text of the Supplemental Indenture, which can be found under the Company's issuer profile on SEDAR+ at www.sedarplus.ca.
Closing of Concurrent Private Placement
The Company is also pleased to announce the closing of the Concurrent Private Placement of an aggregate of 997,871 common shares to certain directors and officers of the Company at a price of
All of the subscribers under the Concurrent Private Placement were "insiders" of the Company (the "Insider Participation"). Each of the subscriptions by an "insider" is considered to be a "related party transaction" for purposes of Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61‑101"). The Insider Participation is exempt from the formal valuation and minority shareholder requirements under MI 61-101 in reliance upon the exemptions contained in section 5.5(a) and 5.7(1)(a), respectively, of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the
All securities issued under the Concurrent Private Placement are subject to a hold period in
The Company anticipates using the net proceeds of the Concurrent Private Placement for working capital and general corporate purposes.
The participation of directors and officers in the offering reflects continued confidence in the Company's strategic direction and growth potential.
The securities issued under the Concurrent Private Placement have not been registered under the
About i-80 Gold Corp.
i-80 Gold Corp. is a
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, statements regarding: the use of proceeds in connection with the Concurrent Private Placement; the Company's ability to obtain the approval of the Toronto Stock Exchange and the NYSE American for the Concurrent Private Placement; and the Company's other future plans and expectations, including its recapitalization plan. 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. For a more detailed discussion of such risks and other factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements, refer to i-80's filings with Canadian securities regulators, including the most recent Annual Information Form, available on SEDAR+ at www.sedarplus.ca.
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SOURCE i-80 Gold Corp
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