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The company will sell 36.6 million shares at a price of $2.05 each, a 6.8% discount to its prior closing price. Newmont and Agnico Eagle have each indicated they intend to subscribe for shares under their participation rights in order to maintain their respective ownership positions, as will Pierre Lassonde.
Orla recently reached terms with neighbour Fresnillo for a layback agreement, which is expected to significantly increase the amount of mineable ore at Camino Rojo. The company intends to report an increase in reserves later this year. The constrained configuration was due to produce 97,000oz gold and 511,000oz silver a year for six to eight years.
Shares in Orla Mining are trading at C$2.20, valuing the company at $411 million.
