i-80 Gold Corp. announced the successful completion of the first phase of its recapitalization plan by entering into agreements with Orion Mine Finance to defer upcoming gold and silver deliveries. Specifically, 3,210 ounces of gold and 400,000 ounces of silver, originally scheduled for delivery on December 31, 2024, and January 15, 2025, respectively, have been deferred until March 31, 2025.
As part of these Waiver Agreements, Orion Mine Finance also agreed to extend the expiry date of its convertible credit agreement, the Orion Convertible Loan, by six months, moving it from December 31, 2025, to June 30, 2026. In connection with these deferrals and the loan extension, i-80 Gold has agreed to issue Orion five million common share purchase warrants, priced at a 25% premium to the company's five-day volume weighted average share price.
This deferral provides i-80 Gold with immediate financial flexibility and is a critical step in its broader recapitalization strategy, which aims to restructure existing debt and secure sufficient capital for its new development plan. The company also anticipates entering into an offtake agreement with Orion by the end of January, which is expected to have terms similar to the existing agreement and commence after December 2028.
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