i-80 Gold Corp. announced an agreement with certain convertible debenture holders to implement proposed amendments to its $65 million principal amount of secured convertible debentures. These amendments are designed to facilitate the second phase of the company's recapitalization plan, which is targeted for completion by the end of the first quarter of 2025.
Key amendments include changing the conversion price for outstanding and accrued interest on the Convertible Debentures to the five-day volume weighted average price of i-80 Gold common shares on the Toronto Stock Exchange, less a 15% discount. Additionally, the company's right to grant pari-passu security against the McCoy-Cove project will be removed, making convertible debenture holders senior secured on that asset.
A new redemption right will be introduced, allowing i-80 Gold to redeem the Convertible Debentures for cash at a 104% premium of the outstanding principal, plus accrued interest. The agreement also includes a waiver of an event of default related to a forward-looking minimum cash requirement, conditioned upon these amendments being implemented by February 28, 2025, providing the company with greater financial flexibility.
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