Published on 23rd September 2021
i-80 Gold, based in Canada, has agreed to exchange assets with Nevada Gold Mines (NGM) in order to build a massive mining complex in Nevada.
In this sense, Nevada Gold Mines will sell the Canadian miner some processing facilities as well as the Lone Tree and Buffalo Mountain gold mines. Currently, the processing infrastructure, which includes an autoclave, is being cared for and maintained.
Nevada Gold Mines will take over i-80 Gold's 40% ownership in the South Arturo Property in exchange. South Arturo will now be fully owned by the firm, giving it the freedom to investigate potential operational synergies with its other Nevada holdings.
Aside from that, Nevada Gold Mines will have a low-cost option to purchase i-80 Gold's neighboring Rodeo Creek exploration site.
Nevada Gold Mines, a joint venture between Barrick Gold and Newmont, will also be eligible for a $50 million contingent payment. This will be based on the Lone Tree asset's output.
i-80 Gold has agreed to buy the Ruby Hill gold mine in Eureka County, Nevada, from Waterton Global Resource Management affiliates in a separate agreement.
“These transformational acquisitions result in a significant increase in the Company's mineral resource base, and position i-80 to become one of the largest gold producers in Nevada with the capacity to process refractory and oxide mineralization,” stated Ewan Downie, CEO of I-80 Gold.
“Importantly, once the Lone Tree facility has been retrofitted to suit the Company's deposits, i-80 gains a strategic advantage as one of only three companies in Nevada with infrastructure to process refractory mineral resources.”
Nevada Gold Mines will also purchase up to 9.9% of the company's new treasury common shares through a private placement for a price of up to $50 million, according to the Canadian miner.
“Through the acquisition of Lone Tree, an asset not being utilized by NGM has become a transformational asset for i-80. In return, NGM’s acquisition of i-80’s 40% of the South Arturo Joint Venture secures additional ounces with both open-pit and underground optionality for our Carlin operation.”