Gold Companies Cash Up for Development
February has been a big month for capital raisings and financings
i-80 Gold Corp (TSX: IAU)
Earlier this month, small-scale producer i-80 announced a financing package of up to US$500 million to advance its goal of becoming a 300,000-400,000 ounce per annum producer in Nevada.
The company entered into a commitment letter with Franco-Nevada Corporation (TSX: FNV) for US$250 million in financing in exchange for a 1.5% life-of-mine net smelter return royalty, stepping up to a 3% LOM net smelter return royalty from January 2031.
i-80 also secured commitments for a gold prepay facility with National Bank and Macquarie, for an initial advance of US$150 million at closing, with a US$100 million accordion feature.
Under the prepay facility, i-80 will deliver 39,978oz of gold over a 30-month period beginning in January 2028.
i-80 expects the total ounces to be delivered for the full US$250 million facility to represent approximately 15% of total gold output over the projected period of January 2028 to June 2030.
The company will use the proceeds to refurbish the Lone Tree plant and repay debt of around US$175 million.
i-80 has now secured US$800 million in funding as part of its goal to target US$900 million to US$1 billion to complete its recapitalisation plan to retire and replace its convertible debentures and fully fund the first two phases of its development plan.
The third phase, to increase production to more than 600,000ozpa, is the development of the 282,000ozpa Mineral Point heap leach project from 2032.
Novagold Resources Inc (TSX: NG)
Novagold announced a US$200 million bought deal offering on January 22 and upsized the offer to US$310 million earlier this month.
BMO Capital Markets, RBC Capital Markets and Scotiabank acted as underwriters and bookrunners to the offer, which included a cornerstone order of US$140 million from an unnamed European institution.
Novagold owns 60% of the large Donlin gold project in Alaska, alongside new partner, Paulson Advisers’ Donlin Gold Holdings, which jointly acquired Barrick Mining Corporation’s (NYSE: B) 50% stake in the project for US$1 billion in mid-2025.
Donlin has reserves of 32.8Moz at 2.02 grams per tonne gold as well as 12Moz in resources, which sits within less than 5% of the project’s total land package.
The project has forecast capital costs of US$9.2 billion for a 27-year operation that would produce 1.1Moz of gold per year.
At a gold price of US$2100/oz, Donlin had a post-tax net present value (5% discount rate) of US$5.1 billion, an internal rate of return of 10.3% and a payback period of 6.5 years.
The project partners have approved a budget of US$131.4 million for 2026 to advance the bankable feasibility study, permitting and exploration.
Federal and state permitting is complete, though the project requires several minor permits.
Earlier this month, engineering firm Fluor Corporation (NYSE: FLR) was selected to lead the BFS following a competitive tender process.
The BFS is due for completion in 2027, which, subject to positive economics and financing, will be followed by a final investment decision and a four-year construction period.
Minerals 260 (ASX: MI6)
This week, Minerals 260 announced that it had signed a A$220 million funding package with Franco-Nevada to accelerate and de-risk the development of the Bullabulling gold project, 65km from Kalgoorlie in Western Australia.
Franco-Nevada currently holds a 1% royalty over certain Bullabulling tenements but will pay A$170 million to increase its total royalty over the project to 2.45%.
Franco-Nevada will also invest A$50 million in Minerals 260 by subscribing for 111.1 million shares at an issue price of A45c per share, a 7% premium to the last closing price, giving it a 4.9% stake in the company.
The deal represents Franco-Nevada’s largest ever royalty acquisition in Australia.
Minerals 260 only acquired the brownfields Bullabulling project this time last year and has since doubled the resource to 4.5Moz of gold following an aggressive seven-month drilling campaign.
The resource remains open at depth and along strike.
The funding will be used for the construction of a 400-bed accommodation village, the procurement of long lead items, early site works, the expansion of the current 30,000m drilling program, geotechnical and metallurgical work and water bore development.
The company is on track to release a prefeasibility study and initial reserve estimate in July, followed by a definitive feasibility study in early 2027.
Minerals 260 is targeting first production in the second half of 2028.
Horizon Minerals (ASX: HRZ)
Last week, Horizon raised A$175 million following the release of scoping studies into the Black Swan processing hub near Kalgoorlie in WA.
Petra Capital was lead manager, bookrunner and underwriter, while Euroz Hartleys acted as co-manager to the A$1.08 per share offer, a 12.6% discount to the previous close.
Horizon will also conduct a share purchase plan to raise up to an additional A$10 million.
The company acquired Black Swan, a former nickel plant, last year with the aim of converting it into a gold processing hub to support its 1.87Moz resource base.
Studies released last week outlined an initial five-year mine life at a 2.2 million tonne per annum processing rate to produce an average 102,000ozpa of gold at all-in sustaining costs of A$3353/oz.
Capital costs were forecast at A$160.5 million, including estimated plant refurbishment and conversion costs of A$101 million, site establishment and infrastructure refurbishment costs of A$45.6 million and mine development costs of A$13.8 million.
Based on a A$5500/oz gold price, the project would generate pre-tax free cashflow of A$959 million, or A$1.2 billion at A$7000/oz, which is still around A$300/oz below spot.
The project has a pre-tax NPV8 of A$631 million and IRR of 83%.
The payback period is 18 months from the start of plant commissioning, which is targeted for mid-2027.
Brightstar Resources (ASX: BTR)
At the start of this month, Brightstar launched a A$175 million institutional placement and share purchase plan to raise an additional A$5 million.
Canaccord Genuity acted as sole lead manager and bookrunner to the placement, with Euroz Hartleys and Argonaut Securities acting as co-managers.
The proceeds will be used for the development and construction of the Goldfields Hub project in WA, including the 1.5Mtpa carbon-in-leach processing plant in Laverton, pre-strip mining costs and working capital.
The raising came days after Brightstar released an updated DFS for the Goldfields Hub.
The project has pre-production capital costs of A$188 million and is set to produce 457,000oz of gold over six years at AISC of A$2998/oz.
At a base case gold price of A$6000/oz, the project would generate undiscounted pre-tax cashflow of A$1 billion, rising to A$1.4 billion at A$7000/oz.
The project has a pre-tax NPV8 of $606 million, IRR of 74% and payback period of 17 months at the base case price, which increases to A$911 million and 106% at the higher price with a 13-month payback.
Brightstar is aiming to secure a A$100-150 million debt funding package by the end of this quarter ahead of a final investment decision.
First gold is targeted in the June 2027 quarter.
Brightstar is also advancing its larger Sandstone project in WA with a PFS due by mid-year.
Osisko Development Corp (NYSE/TSX: ODV)
Osisko completed a bought deal offering earlier this month for proceeds of US$143.7 million, which included the exercise in full by the underwriters of their over-allotment option.
National Bank Capital Markets, RBC Capital Markets and Cantor were underwriters with BMO Capital Markets as co-lead underwriter and co-bookrunner.
Double Zero Capital subscribed for US$28.6 million of shares as part of its pre-emptive rights.
The proceeds will be used for infill and deep drilling at the Cariboo gold project in British Columbia.
Cairboo already has resources of 11.4Moz of gold and probable reserves of 2.07Moz at 3.62g/t.
The April 2025 optimised feasibility study for the fully permitted and funded C$881 million project outlined annual production of 190,000oz at AISC of US$1157/oz over 10 years from the second half of 2027.
The study returned a post-tax NPV5 of US$943 million, unlevered IRR of 22.1% and payback of 2.8 years at a gold price of US$2400/oz, improving to US$2.06 billion, 38% and 1.6 years, respectively, at US$3300/oz.
In July, Osisko secured a US$450 million project loan facility from Appian Capital Advisory and last month, raised US$203 million in a private placement, which, when combined with potential offtake, is expected to fund the construction of Cariboo.
Earlier this month, Osisko entered into a definitive project and construction management services agreement with JDS Energy & Mining Inc for the development of the project.
First production is expected in 2028.
Santana Minerals (ASX: SMI)
Last week, New Zealand developer Santana received firm commitments from institutional and sophisticated investors to raise A$130 million via a placement of approximately 144.4 million shares at A90c per share.
Canaccord Genuity and Bell Potter Securities acted as joint lead managers to the Placement.
Santana is seeking to raise up to a further A$30 million via a share purchase plan.
The placement fills the equity component of funding of the A$277 million Bendigo-Ophir gold project.
Talks for the debt component are advancing.
The July 2025 PFS returned a post-tax NPV6.5 of A$780 million and IRR of 39%, based on a gold price of A$3500/oz.
At A$6500/oz, the project would generate post-tax free cash of A$3.8 billion and has an NPV of A$2.3 billion, IRR of 94% and payback period of 1.3 years.
The project is set to produce up to 120,000oz per annum at AISC of A$1962/oz and all-in costs of A$2245/oz over 13.8-years.
Santana was granted a 30-year mining permit for the project in November.
It’s one of the two main approvals required to begin construction, the other being the Fast-track Approvals Act consents.
This month, a decision date of October 29 at the latest was confirmed under the act, with a seven-member expert panel to assess the project by April.
i-80, Novagold, Horizon and Osisko will present at the 2026 Mining Forum Europe in Zürich, April 13-15
.