U.S.-focused gold miner i-80 Gold (TSX: IAU; US-OTC: IAUCF) has inked a deal with Nevada Gold Mines that will help it create a major mining complex in the precious metals-rich state of Nevada.
Nevada Gold Mines (NGM), a partnership between Newmont (TSX: NGT; NYSE: NEM) and Barrick Gold (TSX: ABX; NYSE: GOLD), is buying from i-80 the remaining 40% interest in the South Arturo joint-venture and a low-cost option to acquire the adjacent Rodeo Creek exploration property.
i-80, a relatively new company born from Equinox Gold’s (TSX: EQX; NYSE: EQX) acquisition of Premier Gold Mines, gets in exchange the Lone Tree and Buffalo Mountain properties, as well as related infrastructure which is currently in care and maintenance.
The company also has signed a definitive membership interest purchase to acquire the Ruby Hill mine from affiliates of Waterton Global Resource Management for US$150 million in cash and shares.
Ruby Hill hosts multiple deposits that collectively have the potential to be one of the biggest gold and silver endowments in Nevada.
The deal, i-80 CEO Ewan Downie said, would position the company as one of the biggest gold producers in the state of Nevada with the capacity to process refractory and oxide mineralization.
For Nevada Gold Mines, it is an opportunity to consolidate production from its South Arturo open pit and the El Niño underground, capturing 100% of the longer-term upside on both orebodies. The agreement also provides Nevada Gold Mines with a low-cost option to acquire 100% of the Rodeo Creek property comprised of exploration ground adjacent to South Arturo
“This is a win-win transaction for both Nevada Gold Mines and i-80,” Greg Walker, Nevada Gold Mines’ executive managing director said in a separate statement.
“Through the acquisition of Lone Tree, an asset not being utilized by NGM has become a transformational asset for i-80. In return, NGM’s acquisition of i-80’s 40% of the South Arturo Joint Venture secures additional ounces with both open-pit and underground optionality for our Carlin operation.”
I-80 is also advancing an underground development program for the 100%-owned McCoy-Cove property, south of Battle Mountain, and completing the acquisition of the Getchell Project.
The miner has said it would “aggressively pursue” the development of the Pinson underground and open pit opportunities.
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