RENO, Nev. - i-80 Gold Corp. (TSX: IAU) (NYSE American: IAUX), a Nevada-focused mining company with a market capitalization of $194 million, has entered into amended agreements with Orion Mine Finance to defer its December 2024 gold prepay and January 2025 silver purchase agreement deliveries to March 31, 2025. This move is part of the first phase of i-80 Gold’s recapitalization plan, which aims to restructure existing debt and develop its portfolio of assets. According to InvestingPro data, the company carries a total debt of $177 million and operates with a concerning current ratio of 0.33, indicating potential liquidity challenges.
The gold delivery, originally scheduled for today, and the silver delivery, set for January 15, 2025, have been postponed as the company works with current and potential lenders to complete its recapitalization by the end of the first quarter of 2025. As part of the agreement, i-80 Gold will issue five million common share purchase warrants to Orion, priced at a 25% premium to the company’s five-day volume-weighted average share price prior to the amendment of the Orion Convertible Loan, expected by January 15, 2025. InvestingPro analysis reveals the company’s challenging financial position, with negative EBITDA of -$67 million in the last twelve months and a stock price decline of over 72% year-to-date.
i-80 Gold’s CEO, Richard Young, expressed gratitude for Orion’s support in deferring the metal deliveries, which allows the company to advance its recapitalization plan and develop its gold projects in Nevada. The company’s portfolio includes five gold projects for which updated Preliminary Economic Assessments are expected in the first quarter of 2025.
Additionally, the company is planning to release an updated technical report for the Lone Tree project, which will update the current mineral resource estimate, and a class III engineering study detailing the capital budget for refurbishment of the Lone Tree autoclave is anticipated in the third quarter of 2025.
The company also announced that Greg Smith is stepping down from i-80 Gold’s Board of Directors effective today, following the divestiture of i-80 Gold shares by Equinox Gold Corp (NYSE:EQX).
i-80 Gold’s recapitalization efforts are critical for advancing its Nevada gold projects and establishing Lone Tree as the hub for its operations. The company’s shares are traded under IAU on the TSX and IAUX on the NYSE American. This announcement is based on a press release statement.
In other recent news, i-80 Gold Corp. reported a dip in Q3 2024 revenues, which fell to $11.5 million from $13.2 million in Q3 2023, due to a decrease in gold sales volume. Despite this, the company remains steadfast in its strategic development plans to become a mid-tier gold producer in Nevada, with an annual production target of 400,000 to 500,000 ounces. A recapitalization strategy is in place to optimize the balance sheet while minimizing shareholder dilution, with discussions ongoing with Orion and other lenders.
The company is advancing key gold and silver projects, deferring base metal opportunities for near-term cash flow. These projects include Granite Creek, Archimedes Underground, Mineral Point, and Cove, all at various stages of development and permitting. For instance, commercial production at Granite Creek is targeted to ramp up by 2026, with permits for Archimedes Underground anticipated in Q1 2025.
The company’s cash position decreased to $21.8 million, with a significant cash consumption of approximately $26 million in Q3. However, the Granite Creek mine produced over 53,000 tons, up 50% year over year. The company is confident in the asset base and the long-term potential of the project pipeline, with a goal to complete refinancing by Q1 2025.
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