Orla Mining completes layback agreement with Fresnillo to expand the Camino Rojo Oxide Gold Project

On February 26, 2021, Orla Mining Ltd. (TSX: OLA) ("Orla") announced that, following receipt of Mexican anti-trust approval, its Layback Agreement with Fresnillo Plc ("Fresnillo") had come into effect. Under the terms of the Layback Agreement, Orla will pay Fresnillo a total cash consideration of US$62.8 million through a staged payment schedule.

The Layback Agreement will allow Orla to expand the Camino Rojo oxide pit onto part of Fresnillo's mineral concession located immediately north of Orla's property and will provide Orla with the right to mine from Fresnillo's mineral concession, and recover for Orla's account, all oxide and transitional material amenable to heap leaching that are within an expanded open pit. 

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. 

France Tenaille and Ian Mitchell of Gowling WLG advised Orla in the negotiation and execution of the Layback Agreement.