Franco-Nevada Backs i-80 Gold With $250 Million Royalty Deal

Toronto-based Franco-Nevada will acquire a 1.5% net smelter return royalty on all of i-80 Gold’s mineral properties. According to the agreement, this royalty rate will double to 3% starting in 2031. The arrangement covers several key sites, including the active Granite Creek underground mine and the Archimedes development project, as well as future prospects like the Cove underground project.

The financing is part of a broader $500 million recapitalization strategy designed to transform i-80 into a major producer. The company is currently executing a three-phase expansion plan with the goal of increasing annual gold output from roughly 150,000 ounces to more than 600,000 ounces by 2032. Beyond the royalty agreement, i-80 secured a gold prepay facility with National Bank of Canada and Macquarie, providing an initial $150 million with a $100 million accordion feature.

Capital Allocation and Debt Management

Management plans to deploy the capital across five primary gold projects while refurbishing its processing infrastructure and funding resource expansion. Crucially, a portion of the proceeds will be used to retire approximately $175 million in existing debt obligations. To complete its balance sheet overhaul, i-80 stated it is also pursuing the sale of non-core assets and the replacement of its current convertible debentures.

Under the terms of the gold prepay facility, i-80 is obligated to deliver 39,978 ounces of gold over a 30-month period beginning in January 2028. This delivery is expected to represent roughly 15% of the company's total gold output during that window, according to the financing terms, assuming the full facility is utilized.