Franco-Nevada Acquires $250M Royalty from i-80 Gold
Franco-Nevada (FNV), through a wholly-owned U.S. subsidiary, has entered into an agreement to acquire a $250M net smelter return royalty from i-80 Gold Corp. (IAUX) to support its recapitalization plan and strategy of creating a Nevada-focused mid-tier gold producer. The Royalty rate will initially be 1.5%, increasing to 3.0% beginning in 2031, and will apply to all of i-80 Gold's material properties including their six projects in various stages of development. These projects cover more than 250 km2 of prospective ground and include: Granite Creek Underground - operating -, Archimedes Underground - development -, Mineral Point Heap Leach - study -, Granite Creek Open Pit - study -, Cove Underground - study -, and Lone Tree open pit - study -. i-80 Gold has outlined a three-phase development timeline to put the projects into production, anticipated to increase annual production from 150-200 koz Au in Phase 1 to 600+ koz Au with Phase 3 in 2032+. Mineral Point is expected to produce 282 koz AuEq per year once in production. Royalty terms include upfront proceeds of $225M upon closing, with a further $25M payment subject to completion of 2026 budgeted spending at Mineral Point. Franco-Nevada will maintain a right of first offer on future streams, royalties and similar interests related to i-80 Gold's assets. Closing of the transaction is subject to customary conditions and is expected to occur in March. Franco-Nevada intends to finance the transaction from cash on hand.
