Orla Mining has signed an agreement to acquire the Camino Rojo oxide project from Goldcorp for an undisclosed sum.
Camino Rojo is 50km southeast of the Peñasquito mine in the State of Zacatecas in north-central Mexico
As per terms of the deal, Goldcorp will secure 19.9% of the issued and outstanding common shares of Orla and 2% Net Smelter Return royalty on revenues from all metal production from the project, with excluding metals produced under a joint venture with Orla.
The deal will also allow Orla to purchase up to a 70% stake in future sulphide projects, in addition to providing right to nominate a director to
Subject to customary closing conditions, the deal is expected to be completed in the second half of this year.
The Camino Rojo gold/silver project is an advanced-stage district project, where pre-feasibility study is currently undergoing to assess Camino Rojo as a supplemental source of feed to the existing Peñasquito facility.
The Represa deposit is located in a broad alluvial pediment within the eastern Mexican fold-belt where folded Mesozoic clastic and carbonate sedimentary units were intruded by intermediate-composition and felsic dikes.
Based in Vancouver of British Columbia, Goldcorp carries out mining operations in the US and Canada.