i-80 Gold, a Nevada, US-based mining company, has closed its bought deal public offering, raising around C$115m ($83.8m).
This transaction included offering 69,698,050 units at C$1.65 each, with the full exercise of the over-allotment option. The infusion will be utilised to enable the development of the company’s mineral properties and for general corporate requirements.
Each unit issued in the offering comprises one common share and a half warrant of i-80 Gold. The warrants are exercisable for one common share at C$2.15 each over a period of 48 months from the offering’s closure.
The transaction was spearheaded by National Bank Financial, acting as the lead underwriter and sole bookrunner.
The consortium of underwriters, including Canaccord Genuity and Stifel Nicolaus Canada as co-leads, and others such as BMO Nesbitt Burns, RBC Dominion Securities, Scotia Capital, Cormark Securities and PI Financial, received a cash commission of 5% of the gross proceeds, with certain exceptions.
Notably, certain directors and officers of i-80 Gold demonstrated their confidence in the company by purchasing an aggregate of 300,000 units during the offering.
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By GlobalData
The company was exempt from the requirements to obtain a formal valuation or minority shareholder approval for the insiders’ participation in the offering.
Last year, in November, i-80 Gold signed a non-binding term sheet agreement with an arm’s-length third party to establish a potential joint venture for its Ruby Hill gold and silver property in Eureka County, Nevada, US.
i-80 Gold offered the potential partner an exclusivity period of 120 days, subject to an extension for a further 60 days, during which the partner can conduct metallurgical due diligence and negotiate definitive documents.
