(Kitco News) – i-80 Gold (TSX:IAU) today announced that it has entered into definitive agreements to create a comprehensive Nevada gold mining complex through an asset exchange agreement with Newmont and Barrick Gold.
According to the company’s statement, i-80 will acquire certain processing infrastructure, including an autoclave, and the Lone Tree and Buffalo Mountain gold deposits from Nevada Gold Mines (“NGM”), a joint-venture between Barrick Gold and Newmont, via an asset exchange.
The company said that its exchange consideration includes the company’s 40% ownership in the South Arturo property which will consolidate 100% ownership of South Arturo in NGM, providing NGM with flexibility to pursue potential operational synergies with NGM’s other Nevada properties.
In addition, the company to assign its option to acquire the adjacent Rodeo Creek exploration property; to assume a contingent consideration of up to $50 million based on production from the Lone Tree property; and to arrange substitute bonding (and release of NGM bonds) in respect of the Lone Tree and Buffalo Mountain reclamation obligations at closing.
The company has also entered into an acquisition agreement to acquire the Ruby Hill mine from affiliates of Waterton Global Resource Management.
Moreover, i-80 has entered into a private placement commitment with NGM whereby NGM will acquire from i-80 up to 9.9% interest in new i-80 treasury common shares for aggregate proceeds not to exceed $50 million, and a non-binding term sheet with Orion Mine Finance for up to $240 million in acquisition and development financing.
i-80 added that these two transactions are designed to position the company as a prominent, stand alone, gold producer in the state of Nevada. As a result, i-80 to increase its overall inferred gold mineral resource more than three and a half times and to more than double its overall gold measured + indicated mineral resources.
Importantly, the company noted that the agreement with NGM secures for i-80 the ability to process all types of gold bearing mineralization at the centrally located Lone Tree processing facility situated on Interstate 80 once the necessary refurbishment of the facility is completed.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.