TORONTO – i-80 Gold Corp. (NYSE:IAUX) (TSX:IAU) announced today it has entered into a settlement agreement with Vox Royalty Cayman SEZC and Vox Royalty Corp. to terminate its gold offtake agreement, according to a press release statement.
The termination eliminates the company’s obligation to sell and deliver up to 40,000 ounces of refined gold per year from its Granite Creek and Ruby Hill properties through December 31, 2028.
Under the settlement terms, i-80 Gold will issue 3,453,237 common shares to Vox, representing aggregate consideration of $4.8 million based on a price per share of $1.39. The price was calculated in compliance with NYSE American and Toronto Stock Exchange rules. The shares were issued under the company’s existing U.S. shelf registration statement.The stock has delivered a 20.6% return over the past year, though shares have declined 6.7% year-to-date. An InvestingPro analysis indicates the RSI suggests the stock is in oversold territory, with 6 additional ProTips available to subscribers.
The offtake agreement was originally entered into in June 2016 between Orion Mine Finance and certain predecessor entities to i-80 Gold. The agreement was included in the spin-out transaction that established i-80 Gold under an arrangement agreement with Equinox Gold in December 2020. The agreement was amended and restated on August 23, 2023, and was subsequently transferred through a series of entities before being held by Vox.
i-80 Gold is a Nevada-focused mining company that holds gold mineral resources in the state. The company’s shares are listed on the NYSE and Toronto Stock Exchange.
In other recent news, i-80 Gold Corp. announced significant results from its drilling campaign at the Archimedes Underground Project in northeastern Nevada. The company reported high-grade gold intercepts from the Upper Archimedes drilling program. Notable findings include 24.6 grams per tonne of gold over 23.6 meters in one drill hole, 10.2 grams per tonne over 36.4 meters in another, and 8.0 grams per tonne over 46.4 meters in a third hole. These results were disclosed in a press release issued by the company. The true widths of these intercepts are estimated to be between 40% and 65% of the core width. These developments are part of i-80 Gold’s ongoing efforts to explore and expand its mineral resources in the region. The company continues to focus on its strategic objectives in the mining sector.
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