Orla Mining shares surge on $35 million financing

Orla Mining (TSX: OLA) plans to raise gross proceeds of $35 million through a non-brokered prospectus financing consisting of 9.08 million common shares priced at C$4.75 per share.

Accredited investors, including a large institutional investor, Pierre Lassonde, Agnico Eagle Mines and Trinity Capital Partners Corp., have subscribed to the offering.

“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,” Orla CEO Jason Simpson said 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 an 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.