i-80 Announces Proposed Amendments to its Convertible Debentures

In This Article:

First Step in the Second Phase of Recapitalization Plan

RENO, Nev., Jan. 13, 2025 /CNW/ - i-80 GOLD CORP. (TSX: IAU) (NYSE American: IAUX) ("i-80 Gold", or the "Company") announces that it has reached an agreement (the "Agreement") with certain convertible debenture holders (the "Investors") to implement proposed amendments to the terms of its convertible debentures, which are expected to assist in the second phase of the Company's recapitalization plan.

i-80 Gold Corp logo (CNW Group/i-80 Gold Corp)
i-80 Gold Corp logo (CNW Group/i-80 Gold Corp)

On February 22, 2023, the Company closed a private placement offering of $65 million principal amount of secured convertible debentures (the "Convertible Debentures") pursuant to an indenture agreement (the "Indenture") among the Company and the Trustee, the TSX Trust Company (see press release dated February 22, 2023).

On October 15, 2024, debenture holders representing approximately 66 2/3% of the principal amount of the Convertible Debentures appointed, by written resolution, a committee of the debenture holders (the "Committee"), to exercise, and to direct the Trustee to exercise, on behalf of the debenture holders, the powers of the debenture holders set out in the Indenture.

Pursuant to the Agreement, the Company and the Investors have agreed on a series of amendments to address certain requests of debenture holders, as well as to address a Company request to facilitate its previously disclosed recapitalization plan which it anticipates completing by the end of the first quarter of 2025. The Company and the Investors have agreed to submit to the Committee, for approval, three separate amendments to the Indenture.

The first amendment involves changing the conversion price applicable to the noteholders' conversion of outstanding and accrued interest on the Convertible Debentures to equal the volume weighted average price of i-80 Gold common shares on the Toronto Stock Exchange ("TSX") during the five trading days immediately preceding the date the Convertible Debenture holders make such election, less a discount of 15%, converted into US dollars. Additionally, corresponding changes will be made to the provisions relating to the right of the Company to elect to convert the interest payable under the Convertible Debentures into common shares, including updating the conversion price to reflect a 15% discount to market price.

The second amendment removes the Company's right to grant security on a pari-passu basis against McCoy-Cove, leaving Convertible Debenture holders as senior secured on McCoy-Cove with any additional debt subordinated.