Franco‑Nevada Corporation announced a $250 million net smelter return royalty agreement with Nevada‑based i‑80 Gold Corp., giving the streaming company a 1.5 % share of i‑80 Gold’s gold production that will rise to 3.0 % in 2031. The deal covers all six of i‑80 Gold’s projects, including Granite Creek Underground, Archimedes Underground, Mineral Point Heap Leach, Granite Creek Open Pit, Cove Underground, and Lone Tree open pit.
The agreement is structured with an upfront payment of $225 million, followed by a $25 million contingent payment tied to 2026 expenditures at Mineral Point. Franco‑Nevada will fund the transaction from its cash reserves, leaving the company debt‑free; as of September 30 2025 it held $0.9 billion in cash and marketable securities.
Franco‑Nevada’s recent financial performance underscores the strategic fit of the deal. In Q3 2025 the company generated $487.7 million in revenue, up 77 % year‑over‑year, and posted $287.5 million in net income, a 89 % increase. Operating cash flow reached $348.0 million, reflecting strong liquidity that now supports the new royalty investment.
i‑80 Gold, by contrast, has struggled with profitability, reporting a negative operating margin of –82.36 % and a net margin of –135.42 %. The $250 million financing is a key component of a broader $900 million‑$1 billion recapitalization plan designed to fund phased development, refurbish the Lone Tree plant, and retire approximately $175 million of debt. The royalty also provides a predictable revenue stream that will help the company meet its 2024‑planned production target of over 600 000 ounces by 2032.
Strategically, the transaction deepens Franco‑Nevada’s presence in Nevada, a leading U.S. gold‑producing jurisdiction, and gives the streaming firm exposure to a mid‑tier producer with a 7.8 million‑ounce measured and indicated resource base and an additional 8.6 million ounces in inferred resources. For i‑80 Gold, the deal delivers the capital needed to accelerate its three‑phase development plan and positions it to become a significant mid‑tier gold producer in the region.
Management comments highlight the partnership’s alignment. Franco‑Nevada President & CEO Paul Brink said, “We are pleased to add i‑80 Gold’s extensive portfolio of assets in Nevada to our U.S. portfolio and to partner with i‑80 to advance their development plans. The i‑80 team has an excellent track record and we look forward to partnering with them as they unlock what we believe will be one of the largest gold operations in Nevada.” i‑80 Gold President & CEO Richard Young added, “We are thrilled to have Franco‑Nevada as a partner who shares our long‑term vision of advancing our gold portfolio to create a Nevada‑focused mid‑tier gold producer. In 2024, we announced a three‑phase development plan to increase production to more than 600,000 ounces of gold to provide a clear and achievable path to positioning i‑80 Gold as a mid‑tier gold producer, alongside a plan to recapitalize the Company to support this growth strategy. Since then, we have significantly de‑risked and advanced each asset, and we are now pleased to outline a clear financial path to fully fund Phase 1 and Phase 2.
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