Franco-Nevada Inks $250M Deal to Forge a New Nevada Gold Giant

TORONTO, ON – February 12, 2026 – In a major strategic move set to reshape a corner of Nevada’s prolific gold country, royalty and streaming titan Franco-Nevada Corporation has committed $250 million to fuel the ambitious growth of i-80 Gold Corp. The financing, structured as a net smelter return royalty, provides the critical capital for i-80 Gold’s plan to become a mid-tier producer and unlock one of the largest gold operations in the state.

This partnership underscores a powerful trend in the capital-intensive mining sector: leveraging royalty financing to de-risk massive development projects. For i-80 Gold, it provides a clear, non-dilutive path to funding its multi-stage expansion. For Franco-Nevada, it’s a calculated bet on a seasoned management team and a vast, resource-rich land package in one of the world's most stable mining jurisdictions.

"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," said Paul Brink, President & CEO of Franco-Nevada. "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 largest gold operations in Nevada."

A Strategic Blueprint for Growth

The financial architecture of the deal is designed to support i-80 Gold through its most capital-intensive years. Franco-Nevada will receive a 1.5% net smelter return royalty on all minerals produced from i-80 Gold's material properties. This rate is structured to step up to 3.0% beginning January 1, 2031, by which time i-80 Gold’s key projects are expected to be generating significant cash flow.

This step-up clause is a classic feature of modern royalty agreements, balancing the developer's immediate need for cash with the financier's long-term return objectives. The initial lower rate maximizes i-80 Gold's available cash flow during the crucial construction and ramp-up phases of its development plan. The subsequent increase to 3.0% allows Franco-Nevada to share more fully in the success of a de-risked, producing asset portfolio.

The financing will be delivered with an upfront payment of $225 million upon closing, expected in March 2026. A further $25 million is contingent on i-80 Gold completing its budgeted spending at the Mineral Point project in 2026, incentivizing progress on what is slated to be the cornerstone of its final development phase. Franco-Nevada, with $0.9 billion in cash and equivalents as of its last reporting, will comfortably fund the transaction from its existing reserves, a testament to the strength of its debt-free business model.

Forging Nevada's Next Gold Powerhouse

The capital injection is set to ignite an aggressive, three-phase development plan designed to catapult i-80 Gold from a sub-50,000-ounce producer into a mining heavyweight. The company’s goal is to achieve annual production exceeding 600,000 gold ounces by the early 2030s, a more than tenfold increase from its current output.

The strategy hinges on a 'hub-and-spoke' model, with the centerpiece being the refurbishment of the Lone Tree Autoclave facility. This central processing hub is critical, as it will process ore from multiple high-grade underground mines, maximizing efficiency and minimizing redundant infrastructure. The financing package provides substantial capital to advance this refurbishment alongside the first two phases of mine development.

• Phase 1 (2028-2029): Production is projected to climb to between 150,000 and 200,000 ounces of gold annually. This initial surge will come from the Granite Creek Underground and Archimedes Underground projects, with their ore feeding the newly refurbished Lone Tree facility.
• Phase 2 (2030-2031): The plan targets a further increase to 300,000-400,000 ounces per year by bringing the Cove and Granite Creek Open Pit projects online.
• Phase 3 (2032+): The final phase will see the addition of the large-scale Mineral Point project, pushing annual production beyond the 600,000-ounce threshold.

Underpinning this ambition is a massive mineral endowment. The royalty agreement covers a 256-square-kilometer land package hosting a reported 7.8 million gold-equivalent ounces in Measured & Indicated resources and an additional 8.6 million ounces in the Inferred category. This vast resource base provides the long-term foundation for a multi-decade mining operation.

"With Franco-Nevada providing the foundational capital as part of our recapitalization, we now have a clear and achievable path to over 600,000 ounces of gold production annually by the early 2030s," commented Richard Young, President & CEO of i-80 Gold.

Navigating the Path from Capital to Production

The Franco-Nevada deal is the cornerstone of a much larger, comprehensive recapitalization plan that i-80 Gold has been assembling. The company has secured a financing package of up to $500 million, which includes the royalty deal and a gold prepayment facility of up to $250 million. This, combined with prior equity raises, is intended to fully fund the first two phases of development and retire approximately $175 million in existing debt.

This holistic financial strategy demonstrates a sophisticated approach to funding growth, ensuring the company has the liquidity to not only build its projects but also to strengthen its balance sheet. The plan is a vote of confidence in i-80 Gold's leadership, led by CEO Richard Young and COO Paul Chawrun, both of whom have extensive track records in transforming development companies into successful mid-tier producers.

Their deep experience in permitting, building, and operating mines, particularly within Nevada, is considered a critical factor in de-risking the execution of this complex, multi-project build-out. Franco-Nevada's decision to back this team is as much an investment in human capital as it is in mineral resources.

Balancing Ambition with Responsibility

Embarking on a development of this scale in the modern era requires more than just capital and technical expertise; it demands a robust commitment to environmental and social governance (ESG). The press release notes that Franco-Nevada will partner with i-80 Gold on environmental and social initiatives, signaling that sustainable practices are integral to the investment thesis.

Executing this vision in Nevada's arid landscape will present challenges, particularly concerning water management and land use. i-80 Gold is already taking concrete steps, including advancing permitting for a dedicated water treatment facility at its Granite Creek project, which is expected to be operational by early 2026. Furthermore, the company is navigating the rigorous National Environmental Policy Act (NEPA) permitting process with the Bureau of Land Management (BLM) for its projects.

Successfully managing these environmental responsibilities and engaging with local stakeholders will be crucial for maintaining the social license to operate. For Franco-Nevada, ensuring its partner operates to high ESG standards protects its long-term investment. For i-80 Gold, it is a fundamental requirement for building a sustainable, multi-generational mining business in the heart of Nevada.