Mr. Marc Prefontaine reports
ORLA ANNOUNCES INCREASE TO BOUGHT DEAL FINANCING
Orla Mining Ltd. has agreed with 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., to increase the size of its previously announced $25.48-million bought deal offering. Pursuant to the upsized deal terms, the underwriters have agreed to purchase, on a bought deal basis, 15,288,000 units of the company at a price of $1.75 per unit for aggregate gross proceeds to the company of $26,754,000.
Each Unit will consist of one common share (a "Common Share") and one-half of one common share purchase warrant (each full common share purchase warrant, a "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 C$2.35 per common share, subject to adjustment in certain events.
Goldcorp Inc. and Agnico Eagle Mines Limited 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% and 9.9%, respectively.
The Company has agreed to grant the Underwriters an over-allotment option to purchase up to an additional 2,293,200 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 over-allotments, if any, and for market stabilization purposes. If this option is exercised in full, an additional C$4,013,100 in gross proceeds will be raised pursuant to the Offering and the aggregate gross proceeds of the Offering will be C$30,767,100.
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 and may also be sold in other jurisdictions outside of Canada provided that no prospectus filing or comparable obligation arises.
The Offering is scheduled to close on or about February 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% owned and has historical oxide reserves along with historical sulphide resources (which Goldcorp retains a back-in right on the sulphides).
We seek Safe Harbor.
© 2018 Canjex Publishing Ltd. All rights reserved.