Orla secures finance for its first mine
TSX-listed Orla Mining has secured a $125-million project finance facility to develop its first mine – the Camino Rojo oxide gold project, in Mexico.
Trinity Capital Partners is arranging the facility, which will include a syndicate of lenders led by Pierre Lassonde, Agnico Eagle Mines and Trinity Capital, Orla said on Monday.
"Following a comprehensive selection process, led by our CFO Etienne Morin, and supported by our independent advisers Cutfield Freeman & Co., some of our key shareholders have re-iterated their support by agreeing to provide Orla with a simple and flexible debt facility, the proceeds of which will be used for the development of our first mine. We appreciate the interest of other debt providers, ranging from conventional banks to streaming companies and alternative debt funds, who were willing to support the Orla team and were eager to be part of our company's growth," stated president and CEO Jason Simpson.
Lassonde, Agnico Eagle and Trinity Capital have collectively committed to provide an initial tranche of an aggregate of $25-million, which Orla could draw prior to final syndication and completion of definitive documentation relating to the facility and prior to final receipt of required mine permits. This initial advance would allow Orla to order long lead items.
Orla previously said that it aimed to start construction at Camino Rojo in the first half of next year, paving the way for first gold production in mid-2021.
A June 2019 feasibility study estimated that Camino Rojo will produce an average of 97 000 oz/y of gold and 511 000 oz/y of silver, over 6.8 years. The study estimated initial capital expenditure of $123-million.
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