New Financing to Boost Orla Mining's Flagship AssetsBy Paloma Duran | Fri, 07/02/2021 - 14:14
Orla Mining has announced a new financing of US$35million that will be used to further develop and explore its Camino Rojo Oxide Gold Project in Zacatecas, Mexico and Cerro Quema Oxide Gold Project in Los Santos, Panama.
Orla Mining has entered to a non-brokered prospectus financing that consists in 9,085,263 common shares at a price of C$4.75 per share totaling gross income of US$35 million. The offer has been accepted by a large unidentified institutional investor, Pierre Lassonde, Agnico Eagle Mines Limited and Trinity Capital Partners Corporation. The company explained that it signed a binding commitment letter with these investors, in which they agreed to purchase the common shares.
“We are pleased to add another large, reputable institution as an Orla shareholder, and we believe this placement reflects on our growing reputation as a company that delivers value,” said Jason Simpson, President and CEO of Orla Mining.
The company explained that the net proceeds will be used for the development of the Camino Rojo Gold Oxide Project and the Cerro Quema Gold Oxide Project, exploration activities, additional studies on the Camino Rojo Sulphide Project and for corporate purposes.
The company expects to close the offering on July 14. The deal is still subject to certain conditions, such as receiving all necessary approvals and listings, including approval from the Toronto Stock Exchange and NYSE American.
Recently, the company announced that the engineering work at Camino Rojo is 95 percent complete, and its construction is at 22 percent. The average annual production for the life of the mine will be 94,000oz of gold and 597,000oz of silver during 10.4 years of production as opposed to 6.8 years of mine life of the previous scenario, said Sergio Sáenz, General Manager of Minera Camino to MBN. “This additional four years will also give us more flexibility to develop other projects, like the sulphide resource at Camino Rojo, the Cerro Quema in Panama, as well as continuing our exploration programs in both countries. We expect to have the first pour in the later part of 2021 and complete the ramp up and fine tuning of the operation in the first quarter of 2022.”