Mr. Marc Prefontaine reports
ORLA ANNOUNCES CLOSING OF BOUGHT DEAL FINANCING
Orla Mining Ltd. has closed its previously announced bought deal financing, including the exercise in full of the underwriters' overallotment option. A total of 17.58 million units of Orla were sold at a price of $1.75 per unit, for aggregate gross proceeds of $30.76-million. Each unit consists of one common share of Orla and one-half of one common share purchase warrant. Each warrant will entitle the holder to acquire one common share of Orla at a price of $2.35 at any time prior to Feb. 15, 2021.
The company plans to use the net proceeds from the offering for exploration and development activities at the Cerro Quema and Camino Rojo projects and for general corporate purposes.
The offering was made through a syndicate of underwriters led by GMP Securities LP, and including Paradigm Capital Inc., Cormark Securities Inc., TD Securities Inc., Desjardins Securities Inc. and Raymond James Ltd. The underwriters received a cash commission equal to 6 per cent of the gross proceeds of the offering. The offering was completed by way of a short form prospectus filed in all of the provinces and territories of Canada, except Quebec, and offered and sold elsewhere outside of Canada on a private placement basis.
Goldcorp Inc. and Agnico Eagle Mines Ltd. each subscribed for such number of units from the offering in order to maintain their current ownership positions of approximately 19.9 per cent and 9.9 per cent, respectively.
Eight directors, officers and insiders of Orla Mining have participated in the offering and were issued an aggregate of 5.09 million units. Such participation in the offering constitutes a related party transaction as defined in Multilateral Instrument 61-101 -- Protection of Minority Security Holders in Special Transactions. The offering is exempt from the formal valuation and minority shareholder approval requirements of 61-101 as neither the fair market value of the securities issued to related parties nor the consideration for such securities exceed 25 per cent of the company's market capitalization. The company did not file a material change report 21 days prior to closing of the offering as the participation of insiders of the company in the offering had not been confirmed at that time.
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. The company believes it has exploration potential for additional oxide and sulphide mineral resources.
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