“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,” Jason Simpson, president and CEO of Orla Mining, stated in a news release.
Net proceeds from this financing will be used for development activities at the company’s Camino Rojo project and Cerro Quema oxide gold projects. Funds will also be directed to exploration activities, technical studies on the Camino Rojo sulphide project and general corporate expenses.
Camino Rojo is advanced open-pit and heap leach gold-silver project located in Zacatecas, Mexico. The latest feasibility study shows a 10.4-year, 18,000 t/d mine producing on average 94,000 oz gold and 597,000 oz silver annually.
Construction of the Camino Rojo project is currently underway, with first production planned for late 2021.
Shares of Orla Mining surged 8.2% by 11:30 ET Wednesday. The company’s market capitalization currently stands at C$1.2 billion.
