Strengthens Financial Flexibility and Lowers
Cost of Capital
VANCOUVER, BC, Aug. 29,
2023 /CNW/ - Orla Mining Ltd. (TSX: OLA)
(NYSE: ORLA) ("Orla" or the "Company") is pleased to announce that
the Company has amended its existing US$150
million credit facility (the "Amended Credit Facility") with
its existing syndicate of lenders comprised of The Bank of
Nova Scotia, Bank of Montreal, and Canadian Imperial Bank of
Commerce. The Amended Credit Facility consists of a US$150 million revolving term facility.
Amended Credit Facility
Highlights:
- Facility size: US$150
million revolving facility, with the ability to increase the
facility to US$200 million, subject
to receipt of additional binding commitments and satisfaction of
certain conditions precedent. The Amended Credit Facility replaces
the Company's existing facility, which consisted of a US$100 million term facility expiring in
April 2027 and US$50 million revolving facility expiring in
April 2025.
- Term: 4-year term, extending the term on the Company's
existing revolving facility by two years. Full repayment of the
facility is due upon maturity (August 28,
2027).
- Interest rates: The interest rate for the Amended Credit
Facility will be based on the term SOFR rate, plus an applicable
margin ranging from 2.50% to 3.75% based on the Company's leverage
ratio at the end of each fiscal quarter. This represents a 25 basis
point decrease to the lower end of the range compared to the
Company's previous facility. The standby fee for the undrawn
portion of the facility has also been lowered from 25% to 22.5% of
the applicable margin.
"This refinancing provides Orla with additional flexibility to
lower its cost of capital while maintaining liquidity," said
Etienne Morin, Chief Financial
Officer of Orla. "We would like to thank our syndicate of lenders
who have continued to support Orla and have provided us with
additional resources and flexibility to execute on our long-term
strategy."
The Amended Credit Facility is payable in full at maturity and
removes quarterly mandatory repayments required under the previous
term facility. The Company has drawn US$113.4 million under the Amended Credit
Facility with an applicable margin of 2.50% based on its leverage
ratio at closing.
About Orla Mining Ltd.
Orla's corporate strategy is to acquire, develop, and operate
mineral properties where the Company's expertise can substantially
increase stakeholder value. The Company has three material gold
projects: (1) Camino Rojo, located
in Zacatecas State, Mexico, (2)
South Railroad, located in Nevada,
United States, and (3)
Cerro Quema, located in Los Santos Province, Panama. Orla is operating the Camino Rojo
Oxide Gold Mine, a gold and silver open-pit and heap leach mine.
The property is 100% owned by Orla and covers over 160,000 hectares
which contains a large oxide and sulphide mineral resource. Orla
also owns 100% of Cerro Quema
located in Panama which includes a
pre-feasibility-stage, open-pit, heap leach gold project, a
copper-gold sulphide resource, and various exploration targets.
Orla also owns 100% of the South Railroad Project, a
feasibility-stage, open pit, heap leach gold project located on the
Carlin trend in Nevada. The technical reports for the
Company's material projects are available on Orla's website at
www.orlamining.com, and on SEDAR+ and EDGAR under the Company's
profile at www.sedarplus.ca and www.sec.gov, respectively.
www.orlamining.com
Forward-looking
Statements
This news release contains certain "forward-looking
information" and "forward-looking statements" within the meaning of
Canadian securities legislation and within the meaning of Section
27A of the United States Securities Act of 1933, as amended,
Section 21E of the United States Exchange Act of 1934, as amended,
the United States Private Securities Litigation Reform Act of 1995,
or in releases made by the United States Securities and Exchange
Commission, all as may be amended from time to time, including
statements regarding the Company's ability to execute on its
strategy. Forward-looking statements are statements that are
not historical facts which address events, results, outcomes or
developments that the Company expects to occur. Forward-looking
statements are based on the beliefs, estimates and opinions of the
Company's management on the date the statements are made and they
involve a number of risks and uncertainties. Certain material
assumptions regarding such forward-looking statements were made.
Consequently, there can be no assurances that such statements will
prove to be accurate and actual results and future events could
differ materially from those anticipated in such statements.
Forward-looking statements also involve significant known and
unknown risks and uncertainties, which could cause actual results
to differ materially from those anticipated. These risks include,
but are not limited to, those risk factors discussed in the
Company's most recently filed management's discussion and analysis,
as well as its annual information form dated March 20, 2023, which are available on
www.sedarplus.ca and www.sec.gov. Except as required by the
securities disclosure laws and regulations applicable to the
Company, the Company undertakes no obligation to update these
forward-looking statements if management's beliefs, estimates or
opinions, or other factors, should change.
SOURCE Orla Mining Ltd.