Orla Mining acquires Contact Gold, grows South Railroad

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Staff report

Orla Mining Ltd. and Contact Gold Corp. announced Orla has completed the previously announced acquisition of Contact with an all-stock, court-approved arrangement, giving Orla exploration property adjacent to its South Railroad Project in Nevada.

As a result of the completion, Vancouver-based Orla acquired all the issued and outstanding Contact Gold common shares and Contact became a wholly owned subsidiary of Orla. Former Contact Gold shareholders received, in exchange for each Contact share held immediately prior to the effective time of the transaction, 0.0063 of an Orla common share.

Orla reported that it has begun integrating Pony Creek into the company’s exploration activities and plans to increase the exploration budget by $3 million, putting the budgeted exploration expenditure at South Railroad at $14 million this year.

The South Railroad Project is planned as an open pit, heap leach gold mine in Elko County south of Carlin.

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Contact’s key asset is the 100%-owned Pony Creek property, an 11,120-acre exploration land package, and Contact Gold also owned the Green Springs early-stage exploration project at the southern end of the Cortez Trend. That property is subject to an earn-in right held by Centerra Gold Inc.

According to the April 29 announcement, Centerra has the right to acquire 70% of the project through completion of a four-year, $10 million exploration program.



This article was originally published by a elkodaily.com

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