Mr. Marc Prefontaine reports
ORLA ANNOUNCES C$25,480,000 BOUGHT DEAL FINANCING
Orla Mining Ltd. has entered into an agreement with a syndicate of underwriters led by GMP Securities LP, pursuant to which the underwriters will purchase, on a bought deal basis, 14.56 million units of the company at a price of $1.75 per unit for aggregate gross proceeds to the company of $25.48-million.
Each unit will consist of one common share and one-half of one common share purchase warrant of the company. Each warrant will be exercisable to acquire one common share of the company for a period of three years following the closing date of the offering at an exercise price of $2.35 per common share, subject to adjustment in certain events.
Goldcorp Inc. and Agnico Eagle Mines Ltd. each have indicated that they intend to subscribe for such number of units from the offering that will maintain their current ownership position of approximately 19.9 per cent and 9.9 per cent, respectively.
The company has agreed to grant the underwriters an overallotment option to purchase up to an additional 2,184,000 units at the offering price, exercisable in whole or in part, at any time and from time to time on or prior to the date that is 30 days following the closing of the offering to cover overallotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional $3,822,000 in gross proceeds will be raised pursuant to the offering and the aggregate gross proceeds of the offering will be $29,302,000.
The net proceeds from the offering will be used for exploration and development activities at the Cerro Quema and Camino Rojo projects and for general corporate purposes.
The units will be offered by way of a short form prospectus to be filed in all provinces and territories of Canada, except Quebec. The units will also be sold to U.S. buyers on a private placement basis pursuant to an exemption from the registration requirements in Rule 144A of the United States Securities Act of 1933, as amended, and other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.
The offering is scheduled to close on or about Feb. 15, 2018, and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange and the securities regulatory authorities.
About Orla Mining Ltd.
Orla Mining owns two advanced stage open-pit, heap-leach-style oxide gold projects in Panama and Mexico. Camino Rojo is an advanced gold and silver project covering over 200,000 hectares in Zacatecas state, central Mexico. The project is 100 per cent owned and has historical oxide reserves along with historical sulphide resources (which Goldcorp retains a back-in right on the sulphides). The company believes it has exploration potential for additional oxide and sulphide mineral resources.
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