i-80 Gold Closes $250 Million Royalty Financing with Franco-Nevada and Completes Retirement of Certain Legacy Debt Obligations

Rhea-AI Summary

i-80 Gold (NYSE American: IAUX) closed a $250 million royalty financing with Franco-Nevada, receiving $225 million at closing and dedicating funds to extinguish legacy debt and advance Nevada projects. Approximately $165 million repaid legacy obligations; $50 million is allocated to Mineral Point work in 2026, with a $25 million tranche payable after initial spend.

Positive

• $250M royalty financing secured from Franco-Nevada
• $225M advanced at closing to strengthen balance sheet
• $165M used to extinguish legacy debt obligations
• $50M dedicated to Mineral Point infill drilling and early permitting in 2026
• Mandatory redemption of 2027 debentures for $73M completed
• Full repayment to Orion totaling $92M

Negative

• Franco-Nevada royalty is 1.5% LOM NSR, stepping to 3.0% on Jan 1, 2031
• Issued approximately 11.1 million common shares for accrued interest and redemption, causing shareholder dilution
• A $25M tranche remains conditional on Mineral Point expenditures before payment

News Market Reaction – IAUX

+0.60%

+0.60% Session close to close

In the Mar 16 session, IAUX gained 0.60%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details the closing of a $250M Franco-Nevada royalty financing and full repayment ...

Analysis

This announcement details the closing of a $250M Franco-Nevada royalty financing and full repayment of several legacy obligations, including 2027 convertible debentures and Orion’s gold prepay and loan. It substantially reshapes the capital structure while earmarking funds for Mineral Point and Archimedes development. In context of recent filings and prior financing disclosures, investors may watch future capital needs, project delivery milestones, and the long-term impact of life-of-mine royalty and metal purchase commitments.

Key Figures

Royalty financing size: $250 million Initial NSR rate: 1.5% NSR Step-up NSR rate: 3.0% NSR +5 more

8 metrics

Royalty financing size $250 million Total Franco-Nevada royalty financing consideration

Initial NSR rate 1.5% NSR Life-of-mine net smelter return royalty until Jan 1, 2031

Step-up NSR rate 3.0% NSR Life-of-mine net smelter return royalty from Jan 1, 2031

Advanced at closing $225 million Royalty proceeds advanced at closing

Debt extinguishment $165 million Royalty proceeds used to extinguish legacy debt obligations

Debenture redemption payment $73 million Total cash to redeem 2027 convertible debentures

Shares to debenture holders 8.1 million shares Common shares issued for accrued interest election

Payout to Orion $92 million Total repayment for Gold Prepay and convertible loan instruments

Historical Context

5 past events · Latest: Feb 25 (Neutral)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Feb 25	Debenture election terms	Neutral	-0.5%	Extended deadline for debenture holders to elect share or cash interest.
Feb 19	Earnings and plan update	Negative	-3.6%	Higher 2025 revenue but wider net loss and asset write-down reported.
Feb 13	Results call scheduling	Neutral	+0.0%	Announced dates for Q4 and full-year 2025 release and conference call.
Feb 12	Franco royalty agreement	Positive	-6.7%	Franco-Nevada agreed to buy a $250M NSR royalty across key projects.
Feb 12	Large financing package	Positive	-6.7%	Secured up to $500M financing to fund development and retire debt.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent financing and recapitalization announcements, including the Franco-Nevada royalty deal, were followed by negative price reactions despite providing substantial funding.

Recent Company History

Over the last several weeks, IAUX focused on a Nevada-centric growth and recapitalization plan. It secured a financing package of up to $500M, including a $250M royalty and gold prepay facilities, and outlined intentions to retire around $175M of debt. The company then detailed timing and mechanics for debenture interest elections and reported 2025 results with higher revenue but wider losses. Today’s closing of the $250M royalty and retirement of legacy obligations advances that same balance sheet and development strategy.

Key Terms

net smelter return royalty, nsr, convertible debentures, convertible loan, +3 more

7 terms

net smelter return royalty financial

"exchange for a 1.5% life-of-mine ("LOM") net smelter return royalty ("NSR"), stepping up"

A net smelter return (NSR) royalty is a contractual right to receive a percentage of the revenue from minerals sold after they are processed and refined, with common deductions for transportation and refining fees. Investors care because an NSR provides a predictable slice of mining project income without owning the mine, so it affects expected cash flow, risk exposure to commodity prices, and the valuation of both the royalty and the operating project—similar to collecting a portion of rent after paying building maintenance costs.

nsr financial

"life-of-mine ("LOM") net smelter return royalty ("NSR"), stepping up to a 3.0%"

NSR, or Net Service Revenue, is the total income a company earns from its core services after subtracting any discounts, refunds, or allowances. It reflects the actual money coming in from the main operations, similar to how a store’s sales revenue shows what it gains from selling products, minus returns or discounts. For investors, NSR provides a clearer picture of a company's true earning power from its primary business activities.

convertible debentures financial

"redemption of its 8% secured convertible debentures due in 2027 ("2027 Convertible Debentures")"

Convertible debentures are loans a company issues that pay interest like a bond but can be swapped later for the company’s shares at a set price. For investors they act like a safety-net plus a shortcut: you get regular interest payments while retaining the option to join ownership if the share price rises, which offers upside potential but can dilute existing shareholders if conversion occurs.

convertible loan financial

"settle a convertible loan and Gold Prepay Agreement held by affiliates of Orion"

A convertible loan is money lent to a company that can later be changed into shares instead of being repaid in cash. For investors it combines the safety of a loan—priority for repayment if things go wrong—with the potential upside of owning part of the company if its value rises; think of it as lending money that can be swapped for a slice of the company pie under pre-agreed terms. It matters because it affects returns and how much ownership existing shareholders will have.

gold prepay agreement financial

"settle a convertible loan and Gold Prepay Agreement held by affiliates of Orion"

A gold prepay agreement is a financing deal where an investor or lender gives cash up front to a mining company in exchange for an obligation to deliver a set amount of gold over time, usually at a predetermined price or discount. It matters to investors because it provides the miner with near-term funding without issuing shares, but it also commits future production and revenue to the payer, affecting the company's cash flow, leverage and exposure to gold price swings—like prepaying for a future delivery of a commodity.

mandatory redemption financial

"The Company has completed the mandatory redemption of its 2027 Convertible Debentures"

Mandatory redemption is a contract clause that forces an issuer to buy back a security—such as a bond, preferred share, or convertible—under specified conditions or at scheduled times. For investors it matters because it determines when and how they will get their principal or liquidation value returned, affects the timing of income, and can change the total number of outstanding securities, similar to a store being required to repurchase a product on a set schedule.

silver purchase and sale agreement financial

"A Silver Purchase and Sale Agreement held by Orion remains in place"

A silver purchase and sale agreement is a written contract that sets the terms for buying and selling physical silver or silver-containing material, including quantity, price mechanics, delivery and payment. Investors care because it locks in when and how a company will convert metal into cash or take delivery, affecting revenue, inventory, cash flow and exposure to silver price swings—think of it as a scheduled handshake that determines future money and metal movement.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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All amounts referenced herein are expressed in United States dollars unless otherwise stated.

TORONTO, March 16, 2026 /PRNewswire/ - i-80 GOLD CORP. (TSX:IAU) (NYSE American:IAUX) ("i-80 Gold" or the "Company") is pleased to announce that it has successfully completed the closing of the previously announced $250 million royalty financing (the "Royalty Financing") with a wholly-owned U.S. subsidiary of Franco-Nevada Corporation ("Franco-Nevada"). The Company used a portion of the Royalty Financing proceeds to complete the mandatory redemption of its 8% secured convertible debentures due in 2027 ("2027 Convertible Debentures") and to settle a convertible loan and Gold Prepay Agreement held by affiliates of Orion Mine Finance ("Orion").

"Together, these transactions represent a major step forward in the Company's recapitalization, significantly strengthening the balance sheet and positioning i-80 Gold to continue advancing its development plan towards becoming a mid-tier gold producer in Nevada," said Richard Young, President & Chief Executive Officer. "We thank Orion, Franco-Nevada and our debenture holders for assisting the Company in advancing its prospective portfolio of projects." 

Completion of Franco-Nevada Royalty Financing

Pursuant to the Royalty Financing, Franco-Nevada is paying $250 million to the Company in exchange for a 1.5% life-of-mine ("LOM") net smelter return royalty ("NSR"), stepping up to a 3.0% LOM net smelter return royalty on January 1, 2031. The royalty payable to Franco-Nevada applies to production from all mineral properties in the Company's portfolio. At closing, a total of $225 million of the Royalty Financing was advanced to the Company with approximately $165 million used to extinguish the legacy debt obligations described below, with the remaining balance to be used to advance the Mineral Point open pit oxide project and construction of the Archimedes underground project. In total, $50 million of the Royalty Financing has been dedicated to advancing Mineral Point infill drilling, engineering and early-stage permitting in 2026, supporting a pre-feasibility study anticipated for completion in 2027. The remaining $25 million of the Royalty Financing is payable following the expenditure of an initial $25 million allocated for Mineral Point, which is expected to be made available later this year.

Redemption of 2027 Convertible Debentures

The Company has completed the mandatory redemption of its 2027 Convertible Debentures for a total cash payment of $73 million, including the principal amount of $65 million and accrued interest of approximately $5.3 million. Total accrued interest on the debentures amounted to approximately $18.7 million. Approximately 70% of the 2027 Convertible Debenture holders elected to receive their accrued interest in common shares of the Company, resulting in the issuance of approximately 8.1 million common shares, while the remaining interest was paid in cash. A 4% premium associated with the early mandatory redemption was applied to the principal amount and accrued interest.

Repayment of the Gold Prepayment and Convertible Loan Instruments Held by Orion

The Company has repaid in full the Gold Prepay Agreement and Convertible Loan Instruments held by Orion. A Silver Purchase and Sale Agreement held by Orion remains in place, as described in the Company's Annual Report on Form 10-K for the year ended December 31, 2025. The total payout to Orion was $92 million, comprising the convertible loan, including a principal amount of $50 million and approximately $20 million of accrued interest, together with the outstanding balance under the Gold Prepay Agreement. An additional 3 million common shares were issued to Orion as part of the early redemption.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any securities described herein, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction. The securities referenced in this press release have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the "Securities Act"). The securities may not be offered or sold in the United States or for the account or benefit of U.S. persons absent registration under the Securities Act or an applicable exemption from registration under the Securities Act.

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 new 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 Toronto Stock Exchange (TSX: IAU) and the NYSE American (NYSE: IAUX). Visit www.i80gold.com for more information.

Cautionary Statement Regarding Forward-Looking Information 

This press release includes certain "forward-looking information" and "forward-looking statements" (collectively "forward-looking statements") within the meaning of applicable securities legislation, including the United States Private Securities Litigation Reform Act of 1995. 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 completion of planned expenditures at Mineral Point. The Company's ability to receive the remaining $25 million of the Royalty Payment will depend on its ability to satisfy the conditions required for such payment. Please see "Risks Factors" in the Form 10-K for the fiscal year ended December 31, 2025 and subsequent quarterly reports on Form 10-Q 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.

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SOURCE i-80 Gold Corp

FAQ

What did i-80 Gold (IAUX) announce on March 16, 2026 about financing?

i-80 Gold closed a $250 million royalty financing with Franco-Nevada to strengthen its balance sheet. According to the company, $225 million was advanced at closing, with funds used to retire legacy debt and to advance Mineral Point and Archimedes projects.

How does the Franco-Nevada royalty affect IAUX shareholders and future production?

The financing grants Franco-Nevada a 1.5% LOM NSR, increasing to 3.0% in 2031, reducing future margins on production. According to the company, the royalty applies to all portfolio properties and funds will accelerate project development in Nevada.

How were IAUX's 2027 convertible debentures settled in this transaction?

i-80 Gold completed mandatory redemption of the 2027 debentures with a $73 million cash payment including principal and some accrued interest. According to the company, ~8.1 million shares were issued electively for accrued interest by holders.

What payment did IAUX make to Orion and what obligations remain with Orion?

i-80 Gold repaid Orion in full for the convertible loan and Gold Prepay, totaling $92 million including principal and interest. According to the company, a Silver Purchase and Sale Agreement with Orion remains in place as disclosed in its 2025 10-K.

How will the $250 million royalty financing be allocated across IAUX projects in 2026–2027?

The company allocated $50 million to Mineral Point infill drilling, engineering and early permitting for a 2027 pre-feasibility study. According to the company, the remaining proceeds fund Archimedes construction and a conditional $25 million tranche tied to Mineral Point spending.