I-80 GOLD CORP. (TSE: IAU) (NYSEAMERICAN: IAUX) has closed a previously announced private placement of approximately 22 million units for USD$0.50 per unit for gross proceeds of USD$11.1 million.
The company announced the closure of the private placement on Wednesday, indicating the funds were going to be used on growth expenses as it expands in Nevada, and for general capital and corporate purposes.
Each unit consists of a share and half a warrant, wherein a full warrant allows the holder to buy a share at USD$0.70 until November 16. A fair amount of insiders bought into the private placement, suggesting a high level of internal confidence in the project.
Certain directors and officers of the company bought about 1.8 million Units through the Concurrent Private Placement. Each Insider’s investment in this Private Placement counts as a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions.
The insiders didn’t buy 25 per cent of the company’s market capitalization, which made it exempt from the requirement to get a formal valuation or minority shareholder approval. The company also didn’t file a material change report due to the insider participation more than 21 days before the private placement closed, and it didn’t really need it.
This private placement came alongside a larger bought deal public offering, where the company issued approximately 345 million units with a price of USD$0.50 for the unit, and raised approximately $172 million.
Read more: Calibre Mining reports solid Q1 results; receives court approval for Equinox Gold merger
Read more: Calibre securityholders give assent for Equinox Gold merger
Ruby Hill adds strong polymetallic component
i-80 Gold Corp focuses on developing high-grade gold and polymetallic projects in Nevada. Its main properties include McCoy-Cove, Ruby Hill, Granite Creek, and Lone Tree. Each project plays a strategic role in the company’s plan to become a major U.S.-based gold producer.
At McCoy-Cove, i-80 has advanced underground development and exploration. The site also hosts some of North America’s highest-grade gold. In 2023, drilling returned 14.9 grams per tonne (g/t) gold over 32.7 meters. Another hole showed 25.4 g/t gold over 20.1 meters. The company also completed 2,644 feet of underground ramp development here.
Ruby Hill also adds a strong polymetallic component to the portfolio. Accordingly, it lies in Nevada’s Eureka District and contains gold, zinc, lead, and silver. Drilling in 2023 returned 10.1% zinc, 0.6% lead, 37.0 g/t silver, and 0.3 g/t gold over 116.3 meters. That same year, residual leaching at Ruby Hill produced 6,643 ounces of gold.
Furthermore, Granite Creek strengthens the company’s underground mining operations. It delivered intercepts like 31.1 g/t gold over 21.9 meters. In 2023, i-80 completed 12,712 feet of development at the site.
Lone Tree serves as the processing hub for all these projects. It handles both oxide and refractory ores. In 2023, it produced 6,225 ounces of gold through residual leaching.
Together, these assets anchor i-80’s production and growth. In total, the company sold 14,613 ounces of gold in 2023 at an average price of $1,940 per ounce. It also sold 83,933 tons of mineralized material, generating $26.3 million in revenue.
Read more: Calibre Mining supports future mining industry workers at Newfoundland science fair
Read more: Calibre Mining understands the balance between economic performance and sustainability
State hosts multiple prolific gold trends
Nevada stands as one of the world’s top gold-producing regions, thanks to its unique combination of geology, infrastructure, and political stability.
The state hosts the prolific Carlin and Walker Lane trends, two mineral-rich belts that have produced over 200 million ounces of gold to date.
The Carlin Trend alone accounts for more than 75 per cent of U.S. gold production. These geological structures make Nevada a prime location for both open-pit and underground gold mining.
In addition to its rich geology, Nevada benefits from a mining-friendly regulatory environment.
The state government supports exploration and development through clear permitting processes and favourable tax policies. Access to skilled labour, roads, water, and power further strengthens the case for investment.
Further, Nevada’s long history of mining means that many brownfield projects come with existing infrastructure, reducing start-up costs and timelines.
Calibre Mining Corp (TSE: CXB) (OTCMKTS: CXBMF) (FRA: WCLA) is one of the notable companies expanding its footprint in the region. After acquiring Fiore Gold in 2022, Calibre added Nevada-based assets such as the Pan Mine, Gold Rock Project, and Illipah Gold Project to its portfolio.
This move gave the company a strong platform for growth in the United States and diversified its operations beyond Nicaragua. Additionally, other major players in Nevada include Barrick Mining Corp (TSE: ABX) (NYSE: B) and Newmont Corporation (TSE: NGT) (NYSE: NEM) (FRA: NMM), which jointly operate the massive Nevada Gold Mines venture.
.
Calibre Mining is a sponsor of Mugglehead news coverage
.
