i-80 Gold Corp. (NYSE American: IAUX) completed a $250 million royalty financing agreement with Franco-Nevada Corporation and used proceeds to retire legacy debt obligations.

Under the agreement, Franco-Nevada receives a 1.5% life-of-mine net smelter return royalty on all mineral properties in i-80 Gold's portfolio, increasing to 3.0% on January 1, 2031. The company received $225 million at closing, with the remaining $25 million payable after initial expenditures on the Mineral Point project.

i-80 Gold used approximately $165 million of the proceeds to extinguish existing debt. The company completed mandatory redemption of its 8% secured convertible debentures due in 2027 for $73 million, including $65 million principal and $5.3 million accrued interest. About 70% of debenture holders elected to receive accrued interest in common shares, resulting in the issuance of approximately 8.1 million shares.

The company also repaid $92 million to Orion Mine Finance affiliates, covering a convertible loan with $50 million principal plus $20 million accrued interest, and the outstanding balance under a Gold Prepay Agreement. Orion received an additional 3 million common shares as part of the early redemption.

The remaining proceeds will advance the Mineral Point open pit oxide project and construction of the Archimedes underground project. The company allocated $50 million for Mineral Point infill drilling, engineering and early-stage permitting in 2026, supporting a pre-feasibility study expected in 2027.

"These transactions represent a major step forward in the Company's recapitalization, significantly strengthening the balance sheet," said Richard Young, President and Chief Executive Officer.

i-80 Gold operates Nevada-focused mining projects and describes itself as the fifth largest gold mineral resource holder in the state. The information is based on a company press release.