i-80 Gold Announces Termination of Gold Offtake Agreement
Rhea-AI Summary
i-80 Gold (NYSE: IAUX) entered a termination and settlement agreement with Vox Royalty to end its gold offtake agreement. The deal removes obligations to deliver up to 40,000 oz/year from Granite Creek and Ruby Hill to 2028 and is expected to improve cash flow flexibility.
i-80 Gold will issue 3,453,237 shares to Vox as consideration of US$4.8 million at US$1.39 per share, using its existing U.S. shelf registration.
Positive
- Eliminates obligation to deliver up to 40,000 oz/year to 2028
- Company expects cash flow savings through 2028 from offtake termination
- Greater flexibility to time future gold sales based on pricing
- Ability to evaluate stockpiling ahead of planned Lone Tree Plant commissioning
Negative
- Shareholder dilution from 3,453,237 new common shares issued
- US$4.8 million in equity consideration issued at US$1.39 per share
News Market Reaction – IAUX
In the Jun 26 session, IAUX gained 2.16%, reflecting a moderate positive market reaction.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Historical Context
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Jun 23 | Annual meeting results | Neutral | -2.1% | Shareholders approved board slate and auditor at 2026 annual meeting. |
| May 12 | Q1 2026 earnings | Neutral | -1.9% | Higher production and revenue offset by larger net loss and non‑cash items. |
| Apr 08 | Drill results update | Positive | +2.4% | High‑grade Archimedes assays and on‑schedule development toward first gold. |
| Mar 24 | Prepay facility & funding | Positive | +3.0% | Closed gold prepay facility and recapitalization securing over $1B for development. |
| Mar 23 | Convertible notes offering | Neutral | +3.1% | Upsized $287.5M 3.75% convertible notes to fund projects and Lone Tree plant. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
News tied to financings and project progress has often seen modest positive reactions, while governance and earnings updates have drawn slightly negative moves.
Key Terms
gold offtake agreement financial
termination and settlement agreement regulatory
offtake agreement financial
lookback period financial
spin-out transaction financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
The termination of the Offtake Agreement eliminates the Company's fixed obligation to sell and deliver up to 40,000 ounces of refined gold per year from its Granite Creek and Ruby Hill properties through to the December 31, 2028 expiry date, and subject to pricing based on a lookback period. The termination of the Offtake Agreement is expected to result in cash flow savings through to 2028, based on the average offtake margin per ounce of gold sold in 2026 to date. This provides the Company with greater flexibility to manage future gold sales based on favourable gold pricing, and to evaluate stockpiling opportunities in anticipation of the planned commissioning of the Lone Tree Plant within Phase 1 of its current development plan.
Pursuant to the terms of the Settlement Agreement, the Company will issue 3,453,237 common shares to Vox, as nominee of Vox Cayman, to satisfy the Company's obligations under the Offtake Agreement, representing an aggregate consideration of
The latest amended and restated Offtake Agreement dated August 23, 2023, was originally entered into with Orion Mine Finance (OMF Fund II (O) Ltd. and OMF Fund III (Cr) Ltd.) (the "Orion Funds"). The Offtake Agreement was initially entered into between the Orion Funds and certain predecessor entities to i-80 Gold in June 2016 and was ultimately included as part of the spin-out transaction that established i-80 Gold under an arrangement agreement with Equinox Gold in December 2020. The amended and restated Offtake Agreement was subsequently transferred through a series of entities and is currently held by Vox.
About i-80 Gold Corp.
i-80 Gold Corp. is a Nevada-focused mining company committed to building a mid-tier gold producer through a fully funded three-phase development plan to advance its high-quality asset portfolio. The Company is the fifth largest gold mineral resource holder in the state with a pipeline of high-grade multi-stage projects strategically located in Nevada's most prolific gold-producing trends. Leveraging its central processing facility following an anticipated refurbishment, i-80 Gold is executing a hub-and-spoke regional mining and processing strategy to maximize efficiency and growth. i-80 Gold's shares are listed on the NYSE (NYSE: IAUX) and the Toronto Stock Exchange (TSX: IAU). For more information, visit www.i80gold.com.
Cautionary Statement Regarding Forward Looking Information
Certain information set forth in this press release, including but not limited to management's assessment of the Company's future plans and operations, expectations regarding outlook on gold output, the expected benefits of terminating the Offtake Agreement such as anticipated cash flow savings, financial and processing flexibility, the anticipated Lone Tree Plant commissioning, and the advancement of the Company's Nevada projects constitute forward-looking statements. All statements other than statements of historical fact are forward-looking statements. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "continues", "forecasts", "projects", "predicts", "intends", "anticipates" or "believes", or variations of, or the negatives of, such words and phrases, or state that certain actions, events or results "may", "could", "would", "should", "might" or "will" be taken, occur or be achieved. Readers are cautioned that the assumptions used in the preparation of information, although considered reasonable at the time of preparation, may prove to be inaccurate and, as such, reliance should not be placed on forward-looking statements. The Company's actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward-looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward-looking statements will transpire or occur, or if any of them do so, what benefits, if any, that the Company will derive therefrom. By their nature, forward looking statements are subject to numerous risks and uncertainties, some of which are beyond the Company's control, including general economic and industry conditions, volatility of commodity prices, title risks and uncertainties, uncertainty in geological, metallurgical and geotechnical studies and opinions, and ability to access sufficient capital from internal and external sources such as selling assets, restructuring debt or obtaining additional equity capital on terms that may be onerous or highly dilutive.
This release also contains references to estimates of mineral resources. The estimation of mineral resources is inherently uncertain and involves subjective judgments about many relevant factors. Mineral resources that are not mineral reserves do not have demonstrated economic viability. The accuracy of any such estimates is a function of the quantity and quality of available data, and of the assumptions made and judgments used in engineering and geological interpretation (including estimated future production from the Project, the anticipated tonnages and grades that will be mined and the estimated level of recovery that will be realized), which may prove to be unreliable and depend, to a certain extent, upon the analysis of drilling results and statistical inferences that may ultimately prove to be inaccurate. Mineral resource estimates may have to be re-estimated based on: (i) fluctuations in commodities prices; (ii) results of drilling, (iii) metallurgical testing and other studies; (iv) proposed mining operations, including dilution; (v) the evaluation of mine plans subsequent to the date of any estimates; and (vi) the possible failure to receive required permits, approvals and licenses or changes to existing mining licenses.
Please see "Risk Factors" in the Form 10-K for the fiscal year ended December 31, 2025 for more information regarding risks pertaining to the Company, which is available on EDGAR at www.sec.gov/edgar and SEDAR+ at www.sedarplus.ca. Readers are encouraged to carefully review these risk factors as well as the Company's other filings with the U.S. Securities and Exchange Commission and the Canadian Securities Administrators. All forward-looking statements contained in this press release speak only as of the date of this press release or as of the dates specified in such statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise except as required by applicable law.
Additional information relating to i-80 Gold can be found on i-80 Gold's website at www.i80gold.com, SEDAR+ at www.sedarplus.ca, and on EDGAR at www.sec.gov/edgar. The information included on, or accessible through, the Company's website is not incorporated by reference into this press release.
View original content to download multimedia:https://www.prnewswire.com/news-releases/i-80-gold-announces-termination-of-gold-offtake-agreement-302811852.html
SOURCE i-80 Gold Corp