i-80 Gold Corp. Announces Completion of Amendments to Convertible Debenture Indenture and Concurrent Private Placement
On February 28, 2025, i-80 Gold Corp. (the “Company”) released a press announcement regarding the completion of amendments to its convertible debenture indenture and the closing of a concurrent private placement. This news is significant for both the Company and its investors.
Amendments to Convertible Debenture Indenture
The Company announced that it has entered into an amending agreement with its convertible debenture holders (the “Holders”) to amend the indenture governing its $15.0 million principal amount of convertible debentures due March 31, 2027 (the “Convertible Debentures”). The amendments include:
- Extension of the maturity date of the Convertible Debentures to March 31, 2028.
- Increase in the conversion price of the Convertible Debentures from $1.80 to $2.25 per share.
- Conversion of the Convertible Debentures into shares of the Company’s common stock at maturity instead of a cash payment.
These amendments will provide the Company with additional financial flexibility and reduce its future cash obligations. The Holders have agreed to these amendments in exchange for the extension of the maturity date and the conversion feature at a higher price.
Closing of Concurrent Private Placement
In connection with the amendments to the Convertible Debenture Indenture, the Company also announced the closing of a concurrent private placement of units (the “Units”) for gross proceeds of approximately $3.5 million. Each Unit consists of one common share of the Company and one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at a price of $2.50 for a period of 24 months.
The net proceeds from the private placement will be used for exploration and development activities on the Company’s mineral properties and for general working capital purposes.
Impact on Investors
The amendments to the Convertible Debenture Indenture and the closing of the concurrent private placement will have several implications for the Company’s investors:
- Existing debenture holders will benefit from the extension of the maturity date and the conversion feature at a higher price.
- New investors will have the opportunity to purchase units at a discounted price and participate in the Company’s future growth.
- The Company’s share price may experience volatility due to the issuance of new common shares from the conversion of debentures and the exercise of warrants.
Impact on the World
The impact of this news on the world at large is less direct:
- The mining industry may benefit from the Company’s increased exploration and development activities.
- Investors in the mining sector may be influenced by the Company’s financial decisions and market performance.
Conclusion
i-80 Gold Corp.’s announcement of the completion of amendments to its Convertible Debenture Indenture and the closing of a concurrent private placement is an important development for the Company and its investors. The amendments provide the Company with additional financial flexibility and reduce future cash obligations. The private placement offers new investors the opportunity to participate in the Company’s growth. The implications for existing debenture holders, new investors, and the mining industry are significant and will be closely watched.
As always, investors are encouraged to carefully consider their investment decisions and consult with their financial advisors. i-80 Gold Corp. remains committed to transparency and will continue to provide updates on its activities and financial performance.
