By Wendy Van Sickle
Columbus, Ohio, Feb. 2 – i-80 Gold Corp. enters into an agreement to complete a placement of up to $50 million 8% secured convertible debentures due 2027, according to a press release.
There is a $7.5 million greenshoe.
The conversion price is $3.38 per common share, up 25% over the closing price of the common shares on Feb. 2.
The debentures are redeemable after 120 days, subject to a 150% hurdle.
The offering is being conducted on a best-efforts basis between the company and a syndicate of agents with Sprott Capital Partners and CIBC Capital Markets working as co-lead agents for the offering.
The net proceeds will be used for the exploration, development and ramp-up (including working capital) of the company’s material mineral projects, surety or bonding relating mine closure, asset retirement and environmental reclamation obligations of the issuer in connection with its material projects (including Buffalo Mountain).
The mining company is based in Reno, Nev.
| Issuer: | i-80 Gold Corp.
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| Amount: | $50 million
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| Greenshoe: | $7.5 million
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| Issue: | Secured convertible debentures
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| Maturity: | 2027
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| Agents: | Sprott Capital Partners and CIBC Capital Markets
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| Coupon: | 8%
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| Conversion premium: | 25%
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| Conversion price: | $3.38
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| Call features: | After June 2023, subject to a 150% hurdle
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| Announcement date: | Feb. 2
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| Settlement date: | Feb. 20
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| Stock symbol: | NYSE American: IAUX
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| Stock price: | $2.70 on Feb. 2
|
| Market capitalization: | $652.88 million
|
| Marketing: | Best efforts
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