Franco‑Nevada backs i‑80 Gold with $250M Nevada royalty to fast‑track multi‑phase growth

Franco‑Nevada has committed $250 million to acquire a net smelter return royalty covering i‑80 Gold’s Nevada assets, supplying primary funding for a staged build‑out that management expects will scale production from current levels into the mid‑hundreds of thousands of ounces annually and ultimately surpass 600 koz per year in the early 2030s. The structure features an upfront payment of $225 million with a conditional $25 million tranche tied to 2026 spending at the Mineral Point site; the royalty begins at a modest percentage before stepping up to a permanently higher rate at the start of 2031. Operationally, the agreement reaches across the company’s material projects — operating and near‑term development mines plus larger open‑pit and heap‑leach prospects — and is designed to underpin phased processing and autoclave refurbishment plans centralizing throughput. For Franco‑Nevada, the transaction increases exposure to a geographically concentrated set of gold assets in Nevada while preserving capital discipline by using on‑hand liquidity to fund the purchase. For i‑80 Gold, the financing reduces near‑term funding pressure and aligns with its recapitalization to drive construction and permit sequencing over three phases. The stepped royalty intentionally eases the burden during capital‑intensive build years, then converts to a higher permanent rate once production and cash generation are established. Market and project risk remain material: timelines, permitting, technical studies, and commodity prices will determine how quickly resources convert into steady production and royalty streams. The Mineral Point project is highlighted as an anchor opportunity, with a material resource base and a targeted mid‑hundreds of koz annual output when developed, which the financing specifically supports. Franco‑Nevada also secured ongoing commercial rights on future streams and commitments to collaborate on environmental and social programs in Nevada, indicating a longer‑term commercial and reputational stake beyond simple capital provision. The deal is expected to close in March 2026 and will be funded from Franco‑Nevada’s existing liquidity position, reinforcing the company’s strategy of growing fee‑like exposure to gold without taking on operating risk. In sum, the financing is a calibrated trade: it preserves near‑term development capacity for i‑80 while granting Franco‑Nevada durable upside tied to a large Nevada resource footprint; execution of permits, construction, and mine ramp will determine whether the projected production profile and royalty returns materialize.