- Orla Mining (TSX:OLA) has announced the completion of a bought deal financing with a syndicate led by Stifel GMP
- 36,600,000 common shares were sold at a price of C$2.05 for total proceeds of $75,030,000
- The proceeds will be used primarily to develop Orla’s Camino Rojo Oxide Gold Project in Mexico
- The company also announced the temporary shutdown of all site activities in Mexico, following a mandate from the Federal Government
- Orla Mining (OLA) is currently down 2.36 per cent to $2.07 per share, with a market cap of $387.49 million
Orla Mining (TSX:OLA) has announced the completion of a bought deal financing with a syndicate led by Stifel GMP.
The syndicate comprised a number of institutional parties, including Desjardins Capital Markets, Paradigm Capital and Cormark Securities.
A total of 36,600,000 common shares were fully subscribed and sold at a price of C$2.05 each, generating gross proceeds of $75,030,000.
The funds raised will go primarily towards the development and construction activities of Orla’s wholly owned Camino Rojo Oxide Gold Project in Zacatecas State, Central Mexico.
A portion of the funds will also go towards general corporate purposes, as well as a layback agreement with Fresnillo Plc.
Covering 160,000 hectares, the Camino Rojo site is home to eight mineral concessions.
However, subsequent to a mandate from the Mexican Government, any further progress at the mine has been halted.
On April 1, the authorities extended an existing ban on all non-essential business until April 30, 2020. Unlike many other regions around the world, this ban includes the mining industry.
Prior to the suspension, Orla had not commenced construction activities, and as such was already operating with a scaled-back workforce. Pre-construction matters, such as detailed engineering and procurement, are continuing as normal, albeit remotely.
The only issue cited in today’s announcement was an expected delay in the receipt of the project’s final environmental permit.
Once the ban is lifted, construction is due to commence in the second half of 2020 as planned.
Orla Mining (OLA) is currently down 2.36 per cent to $2.07 per share at 11:19am EST.
