/THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION
IN CANADA ONLY AND IS NOT INTENDED
FOR DISTRIBUTION TO UNITED STATES
NEWSWIRE SERVICES OR DISSEMINATION IN THE
UNITED STATES/
VANCOUVER, March 26, 2020 /CNW/ - Orla Mining Ltd.
(TSX:OLA) (the "Company" or "Orla") announced today that it has
entered into an agreement with a syndicate of underwriters led by
Stifel Nicolaus Canada Inc. (the "Underwriters"), pursuant to which
the Underwriters will purchase, on a bought deal basis, 36,600,000
common shares (the "Common Shares") of the Company at a price of
C$2.05 per Common Share (the
"Offering Price") for aggregate gross proceeds to the Company of
C$75,030,000 (the "Offering").
Newmont Corporation and Agnico Eagle Mines Limited each have
indicated that they intend to subscribe for such number of Common
Shares from the Offering pursuant to their participation rights in
order to maintain their respective ownership positions, and along
with a commitment from Pierre
Lassonde.
The Company has agreed to grant the Underwriters an
over-allotment option to purchase up to an additional 5,490,000
Common Shares 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
over-allotments, if any, and for market stabilization purposes. If
this option is exercised in full, an additional C$11,254,500 in gross proceeds will be raised
pursuant to the Offering and the aggregate gross proceeds of the
Offering will be C$86,284,500.
The net proceeds from the Offering will be used for exploration
and development activities at Camino Rojo and for general corporate
purposes.
The Common Shares will be offered by way of a prospectus
supplement to be filed in all provinces and territories of
Canada, except Québec. The Common
Shares 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 April 3, 2020 and is subject to certain
conditions including, but not limited to, the receipt of all
necessary approvals including the approval of the Toronto Stock
Exchange and the securities regulatory authorities.
This press release shall not constitute an offer to sell or
the solicitation of an offer to buy securities in the United States, nor shall there be any sale
of the securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful. The securities being
offered have not been, nor will they be, registered under the
United States Securities Act of 1933, as amended (the "1933 Act")
or any U.S. state securities laws, and may not be offered or sold
in the United States absent
registration or an applicable exemption from the registration
requirements of the 1933 Act, as amended, and applicable state
securities laws.
About Orla Mining Ltd.
Orla is developing the Camino Rojo Oxide Gold Project, an
advanced gold and silver open-pit and heap leach project, located
in Zacatecas State, Central
Mexico. The project is 100% owned by Orla and covers over
200,000 hectares. Estimated Mineral Reserves as of June 24, 2019 are 44.0 million tonnes at a gold
grade of 0.73 grams per tonne ("g/t") and a silver grade of 14.2
g/t, for total mineral reserves of 1.03 million ounces of gold and
20.1 million ounces of silver. (Comprised of Proven Mineral
Reserves of 14,595,000 tonnes at 0.79 g/t gold and 15.1 g/t silver
and Probable Mineral Reserves of 29,424,000 tonnes at 0.70 g/t gold
and 13.7 g/t silver). The technical report entitled "Feasibility
Study, NI 43-101 Technical Report on the Camino Rojo Gold Project —
Municipality of Mazapil, Zacatecas,
Mexico" dated June 25, 2019 is
available on SEDAR under the Company's profile as well as on Orla's
website at www.orlamining.com. Orla also owns 100% of the Cerro
Quema Project located in Panama
which includes a near-term gold production scenario and various
exploration targets. The Cerro Quema Project is a proposed open pit
mine and gold heap leach operation. Please refer to the "Cerro
Quema Project - Pre-feasibility Study on the La Pava and Quemita
Oxide Gold Deposits" dated August 15,
2014, which is available on SEDAR.
Forward-looking Statements
This news release contains certain "forward-looking
statements" within the meaning of Canadian and United States securities legislation,
including, without limitation, statements with respect to the
timing of closing the Offering, the use of proceeds from the
Offering, the results of exploration and planned exploration
programs, the potential for discovery of additional mineral
resources and the Company's objectives and strategies.
Forward-looking statements are statements that are not historical
facts which address events, results, outcomes or developments that
the Company expects to occur. Forward-looking statements are based
on the beliefs, estimates and opinions of the Company's management
on the date the statements are made and they involve a number of
risks and uncertainties. Certain material assumptions regarding
such forward-looking statements are discussed in this news release,
including without limitation, assumptions that all approvals of the
Offering will be obtained, the Company's activities will be in
accordance with the Company's public statements and stated goals;
that there will be no material adverse change affecting the Company
or its properties; that all required approvals will be obtained and
that there will be no significant disruptions affecting the Company
or its properties. Consequently, there can be no assurances that
such statements will prove to be accurate and actual results and
future events could differ materially from those anticipated in
such statements. Forward-looking statements involve significant
known and unknown risks and uncertainties, which could cause actual
results to differ materially from those anticipated. These risks
include, but are not limited to: risks related to uncertainties
inherent in the preparation of preliminary economic assessments,
drill results and the estimation of mineral resources; and risks
associated with executing the Company's objectives and strategies,
including costs and expenses. Except as required by the securities
disclosure laws and regulations applicable to the Company, the
Company undertakes no obligation to update these forward-looking
statements if management's beliefs, estimates or opinions, or other
factors, should change.
SOURCE Orla Mining Ltd.