Orla Mining expands into Nevada with Gold Standard acquisition

TSX and NYSE-listed Orla Mining has announced the entering into a definitive agreement with smaller player Gold Standard Ventures Corp for the acquisition of all of the issued and outstanding shares of Gold Standard, by way of a court-approved plan of arrangement.

Via the transaction, Orla will obtain Gold Standard’s 100%-owned South Railroad Project – a feasibility stage, open pit heap leach gold project located on the prolific Carlin trend in Nevada.

Gold Standard – also listed on the TSX and NYSE – completed a robust feasibility study on the project in February, and permitting activities are currently underway. The junior also owns the Lewis Project – a large, strategically located land package on the Battle Mountain trend in Nevada.

“This acquisition advances our strategy of creating stakeholder value through responsibly building and operating a portfolio of high-margin, cash-generating assets with superior geological prospectivity,” said Orla’s CEO Jason Simpson.

“The South Railroad Project is analogous to our recently completed Camino Rojo mine – a low capital intensity, open pit, heap leach project in a desirable location with exploration upside. We have the team, partners, and financial resources to develop this quality asset and we are ready to go,” he added.

Following closure of the deal, Gold Standard shareholders will receive 0.1193 of a common Orla share in exchange for each Gold Standard share held, and C$0.0001.

This implies a purchase price of C$0.655 per Gold Standard Share, or gross consideration of C$242 million, which represents a 35% premium based on the close of Gold Standard’s and Orla’s share price on the Toronto Stock Exchange last week.

Existing shareholders of Orla and Gold Standard will own approximately 87% and 13% of the pro forma company, respectively.