Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
US-focused gold miner i-80 Gold Corp (TSX: IAU), a company formed as part of the acquisition of Premier by Equinox Gold, completed the acquisition of the Getchell project in Nevada from Waterton Global Resource Management.
The company will pay $50 million in cash and common shares, plus contingent value rights and warrants.
The Getchell project is located at the intersection of the Getchell gold belt and the Battle Mountain-Eureka trend immediately south of Nevada Gold Mines’ Turquoise Ridge operation.
Open-pit mining occurred on the property between 1980 and 1999 and underground test mining was conducted in the early 2010s. The project currently hosts both high-grade open-pit and underground.
“The Getchell project will be the focus for the company in 2021 with a +22,000 metre drill campaign designed to upgrade and expand mineralization within both the underground and open-pit horizons,” i-80 said in a press release.
The company is currently progressing work on a Preliminary Economic Assessment for the project that is expected to be released during the current quarter.
The gold miner debuted on the Toronto exchanged on Tuesday.
Midday Friday, i-80’s stock was up 5% on the TSE. The company has a C$412 million ($329m) market capitalization.
