Orla Mining (TSX: OLA) announced Tuesday that the company has secured a project finance facility of up to $125 million for the development of its first mine — the Camino Rojo oxide gold project in Mexico.
The facility is being arranged by Trinity Capital Partners and will include a syndicate of lenders led by shareholder and renowned Canadian businessman Pierre Lassonde, Agnico Eagle Mines, and Trinity Capital.
The lenders have collectively committed to provide an initial tranche 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 will provide flexibility to order long lead items and maintain an efficient construction schedule, the company says.
Camino Rojo is an advanced gold and silver open-pit and heap leach project in Zacatecas, Mexico, covering an area of approximately 200,000 hectares. Recent feasibility study shows that the mine would produce 97,000 oz. gold annually over seven years and could be built for $123 million.
Shares of Orla Mining opened 4% higher than previous day’s market close. The Vancouver-based gold miner has a C$284.6 million market capitalization.