Orla Mining Ltd (TSX: OLA) has closed a bought deal financing for aggregate gross proceeds to the company of C$75,030,000.
The financing was arranged with a syndicate of underwriters led by Stifel GMP and including Desjardins Capital Markets, Paradigm Capital and Cormark Securities Inc.
The net proceeds from the Offering will be used for the development and construction activities at the Camino Rojo Oxide Gold Project in Mexico, projected payments related to the proposed layback agreement with Fresnillo Plc, and for general corporate purposes.
The Camino Rojo Project is a high quality, advanced oxide heap leach project in a low risk jurisdiction. This type of project leverages management’s and the board’s extensive exploration, development and operating experience in Mexico.
- Near-surface oxide gold-silver deposit with a large deeper gold-silver-zinc-lead sulphide zone
- Permit applications submitted
- Detailed engineering initiated
- Located 50km SE of Penasquito Mine in the State of Zacatecas
- Eight mineral concessions covering approximately 206,000 hectares
- Ejido agreements in place; strong community relationships
- Water concessions granted; sufficient water for operations proven
- Excellent regional infrastructure
- Proven and Probable Mineral Reserves of 1.0 million oz. of gold and 20 million oz. of silver (44.0 Mt @ 0.73 g/t gold and 14.2 g/t silver)
- Measured and Indicated Mineral Resources of 9.5 million oz gold and 100 million oz of silver (353,443,000 tonnes @ 0.83 g/t gold and 8.8 g/t silver)
The Camino Rojo Feasibility Study considers open pit mining of 44.0 million tonnes of oxide and transitional ore grading 0.73 g/t gold and 14.2 g/t silver at a throughput rate of 18,000 tonnes per day. Ore from the pit will be crushed to 80% passing 28 mm, conveyor stacked onto a heap leach pad and leached using a low concentration sodium cyanide solution. Pregnant solution from the heap leach will be processed in a Merrill-Crowe recovery plant where gold and silver will be precipitated and doré will be produced.
The project offers low capital and operating costs, rapid payback, and strong financial performance. The site’s proximity to infrastructure, low stripping ratio, compact footprint and flat pad location all contribute to project simplicity and relatively low estimated AISC of US$576 per ounce of gold.