I-80 Gold Corp (TSE: IAU) (NYSEAMERICAN: IAUX) (FRA: 8JI) has secured a financing package of up to US$500 million to support its development plans in Nevada.
Announced on Feb. 12, it consists of a royalty agreement with Franco-Nevada Corp (TSE: FNV) (NYSE: FNV) (FRA: 3FO) valued at US$250 million involving a 1.5 per cent net smelter return royalty on i-80’s main properties. Beginning in 2031, this will increase to 3 per cent.
It also includes a gold prepayment facility of up to US$250 million from National Bank of Canada (TSE: NA) (OTCMKTS: NTIOF) (FRA: NBC) and Macquarie Bank.
The financing is slated to close by the end of Q1, subject to customary conditions. Proceeds are intended to repay approximately US$175 million in existing debt and fund ongoing project advancement in the state.
The news sent shares up to their highest point in almost three years, rising by 8 per cent on the TSX at the intraday peak. This finance package follows earlier capital raises, including equity offerings in Q2 of 2025 worth about US$184 million. Combined with the latest package, i-80 has accessed approximately US$800 million in recent funding.
The early-stage gold producer and developer currently churns out ~50,000 ounces per year, primarily from the Granite Creek underground operation. In Nevada, i-80 has been advancing other assets like Archimedes and the Mineral Point open pit within the Ruby Hill Complex. Construction started at Archimedes in September.
The aim of the game with this expansion work is to produce 300,000 to 400,000 ounces across i-80’s portfolio by 2031.
In Nevada’s gold mining sector, which hosts established operators such as Barrick Mining Corp (TSE: ABX) (NYSE: B) (ETR: ABR0), Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM) and smaller companies like NevGold Corp (CVE: NAU) (OTCMKTS: NAUFF) (FRA: 5E50), i-80’s assets constitute a considerable portion of the region’s ongoing exploration and development activities.
Read more: NevGold expands Bullet Zone discovery as drilling confirms oxide gold-antimony system
Gold prices have shown volatility in recent weeks
As of Feb. 13, spot gold is currently trading for approximately US$4,950 per ounce. Its current pricing follows a decline below the US$5,000 mark after stronger United States jobs data on Feb. 12 reduced expectations for Federal Reserve rate cuts.
Earlier this year, gold hit nearly US$5,600 per ounce but has experienced pullbacks alongside silver despite remaining significantly elevated year-over-year.
The Union Bank of Switzerland (UBS) predicted this week that the precious metal was poised to hit US$5,900 per ounce by the end of 2026 despite recent fluctuations. Gold is still up by 16 per cent year-to-date.
Read more: NevGold Corp. advances toward gold-antimony resource with expanded Nevada drilling
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