Camino Rojo Oxide Gold Project developer Orla Mining Ltd (TSX:OLA) has entered into an agreement with a syndicate of underwriters led by Stifel Nicolaus Canada Inc. to raise a total of C$75,030,000.
The net proceeds from the Offering will be used for exploration and development activities at Camino Rojo and for general corporate purposes.
Newmont Corporation and Agnico Eagle Mines Limited each have indicated that they intend to subscribe for such number of Common Shares from the Offering pursuant to their participation rights in order to maintain their respective ownership positions, and along with a commitment from Pierre Lassonde.
The Offering is scheduled to close on or about April 3, 2020 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the Toronto Stock Exchange and the securities regulatory authorities.
Orla is developing the Camino Rojo Oxide Gold Project, an advanced gold and silver open-pit and heap leach project, located in Zacatecas State, Central Mexico.
The project is 100% owned by Orla and covers over 200,000 hectares. Estimated Mineral Reserves as of June 24, 2019 are 44.0 million tonnes at a gold grade of 0.73 grams per tonne (“g/t”) and a silver grade of 14.2 g/t, for total mineral reserves of 1.03 million ounces of gold and 20.1 million ounces of silver. (Comprised of Proven Mineral Reserves of 14,595,000 tonnes at 0.79 g/t gold and 15.1 g/t silver and Probable Mineral Reserves of 29,424,000 tonnes at 0.70 g/t gold and 13.7 g/t silver).
Orla also owns 100% of the Cerro Quema Project located in Panama which includes a near-term gold production scenario and various exploration targets. The Cerro Quema Project is a proposed open pit mine and gold heap leach operation.