VANCOUVER, BC, Nov. 2, 2020 /CNW/ - Orla Mining Ltd.
(TSX: OLA) ("Orla" or the "Company") is pleased to announce that
the Company has completed the second tranche drawdown of
US$50 million on its previously
announced Project Finance Facility ("Credit Facility"). The funds
will be used towards the development of the Camino Rojo Oxide Gold
Project ("Camino Rojo") located in Zacatecas State, Mexico.
All conditions precedent for the second drawdown have been
satisfied, including the receipt of key mine permits at Camino
Rojo. To date, US$75 million of the
US$125 million Credit Facility has
been drawn. Under the terms of the Credit Facility, the third and
final tranche of US$50 million must
be drawn within six months of the second tranche and remains
subject to meeting certain conditions precedent. The term of the
Credit Facility is five years and bears interest at 8.8% per annum.
For additional details on the Credit Facility, please refer to the
Company's News Releases dated October 21,
2019 and December 18,
2019.
Orla has the two principal permits necessary and construction
activities at Camino Rojo are underway. At the end of the third
quarter of 2020, detailed engineering was 87% complete and
commitments for equipment and contracts totalled US$67 million. Current construction activities
include mobilization of the earthworks contractor, installation of
the construction camp and offices, and site fence erection. A power
line to site has been approved by the federal electricity
commission ("CFE") and construction is currently underway ahead of
schedule, which is anticipated to result in cost savings during the
first year of operation. Process plant equipment, including crusher
and conveyors, is expected to start arriving on site in
November 2020.
The next phase of construction will be the earthworks, which can
commence upon the placement of a required environmental bond. As a
condition of the Company's Environmental Impact Statement
("Manifestos de Impacto Ambiental" or "MIA"), Orla submitted a
Technical Economic Study on August 27,
2020 to the Mexican Federal Environmental Department
("SEMARNAT"). Upon acceptance of the study by SEMARNAT, the
environmental bond will be placed.
Orla continues to maintain robust organization-wide COVID-19
prevention protocols to support the health of employees and local
communities. To date, the Company has reported zero cases of
COVID-19. Orla is closely monitoring the potential impacts from the
pandemic on areas including equipment delivery and logistics,
construction costs and schedule, as well as community and
government relations.
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
160,000 hectares. 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 use
of funds, the timing of meeting certain conditions with respect to
the Credit Facility and the approval of the MIA, the timing of
commencement of construction activities and equipment delivery, the
results of exploration and planned exploration programs,
anticipated cost savings, 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 conditions of
the Credit Facility and the MIA will be met, 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 feasibility studies, drill results and the
estimation of mineral reserves and mineral resources; and risks
associated with executing the Company's objectives and strategies,
including costs and expenses, as well as those risk factors
discussed in the Company's most recently filed management's
discussion and analysis, as well as its annual information form
dated March 23, 2020, available on
www.sedar.com. 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.