i-80 Gold Corp., together with its wholly-owned Delaware subsidiary Premier Gold Mines USA, Inc. (PG USA), has completed a purchase agreement with affiliates of Waterton Global Resource Management, Inc. to acquire from Waterton all of the outstanding membership interests of Osgood Mining Company LLC, for consideration consisting of US$50 million in cash and common shares, plus contingent value rights and warrants.
Osgood is the owner of the Getchell Project in the Getchell gold belt near Winnemucca, Nevada. The Getchell Project is located at the intersection of the Getchell gold belt and the Battle Mountain-Eureka trend immediately south of Nevada Gold Mines’ Turquoise Ridge operation. Open pit mining occurred on the property between 1980 and 1999 and underground test mining (the Pinson Mine) was conducted in the early 2010s. The project currently hosts both a high grade open-pit and underground deposits, and the Pinson Mine has been in care and maintenance since 2015.
The Getchell Project will be the focus for the company in 2021 with a 22 000+ metre drill campaign designed to upgrade and expand mineralisation within both the underground and open pit horizons. The company is currently progressing work on a Preliminary Economic Assessment for the project that is expected to be released during the current quarter. Permitting for the purposes of developing an open pit at Getchell is expected to be initiated in the near future.
Ewan Downie, CEO of i-80, comments:
“The Getchell Project is strategically located proximal to the Turquoise Ridge and Twin Creeks mining operations of Nevada Gold Mines. We look forward to immediately commencing a major drill campaign aimed at advancing the development of the high-grade Pinson underground mine within the next 12 months, while at the same time progressing permitting of the open pit, heap leach, mining opportunity.”
Consideration paid to Waterton consisted of: (i) US$23 million in cash; (ii) 13.03 million common shares of i–80; (iii) warrants to purchase 12.07 common shares of i-80, with an exercise price CAN$3.64 per common share, for a period of 36 months following the closing date; and (iv) contingent value rights include a payment to Waterton in the amount of US$5 million upon the public announcement of a positive production decision related to the Getchell Project (underground or open pit), and an additional US$5 million upon production of the first ounce of gold (excluding ordinary testing and bulk sampling programs) – following a 60 consecutive day period where gold prices have exceeded US$2000 per ounce. The common shares and warrants issued are subject to a statutory hold period under applicable Canadian securities legislation expiring on 15 August 2021.
Read the article online at: https://www.globalminingreview.com/mining/19042021/i-80-gold-acquires-getchell-project-in-nevada/