- Orla Mining Ltd. (OLA) has agreed to acquire all the issued and outstanding shares of Gold Standard Ventures Corp. (GSV) for $242 million
- Gold Standard shareholders get 0.1193 of a common share of Orla and $0.0001 for each of its previous shares
- Orla’s main target for this transaction is Gold Standard’s South Railroad Project
- Orla Mining Ltd.(OLA) is down 14.03 per cent trading t $4.72 per share as of 12:27 p.m. ET
- Gold Standard Ventures Corp. (GSV) is up 11.34 per cent trading at $0.54 per share as of 12:28 p.m. ET
Orla Mining (OLA) has agreed to acquire all the issued and outstanding shares of Gold Standard Ventures Corp. (GSV) for $242 million.
Gold Standard shareholders will receive 0.1193 of a common share of Orla and $0.0001 for each of its previous shares.
The consideration implies a purchase price of $0.655 per Gold Standard share and represents a 35 per cent premium based. Existing shareholders of Orla and Gold Standard will own approximately 87 and 13 per cent of the pro forma company after closing.
According to Orla, the main target for this transaction is Gold Standard’s South Railroad Project. The project is in its early feasibility stage on the productive Carlin trend in Nevada. Additionally, Gold Standard owns the Lewis Project, a large, strategically located, prospective land package on the Battle Mountain trend in Nevada.
“This acquisition advances our strategy… The South Railroad Project is analogous to our recently completed Camino Rojo mine, a low capital intensity, open pit, heap leach project in a desirable location with exploration upside,” Jason Simpson, CEO of Orla Mining, said.
Orla stated that with South Railroad, Camino Rojo Oxide Mine, and pipeline in Mexico through to Panama will help create an annual gold production of 500,000 ounces at industry-leading cost margins.
The transaction will also increase Orla’s proven and probable reserve base to 3.8 million gold ounces and its measured and indicated mineral resources to 12.3 million gold ounces.
Orla Mining Ltd. (OLA) is down 14.03 per cent trading t $4.72 per share as of 12:27 p.m. ET.
Gold Standard Ventures Corp. (GSV) is up 11.34 per cent trading at $0.54 per share as of 12:28 p.m. ET.
