Orla Mining (TSX:OLA) has acquired Contact Gold Corp (TSX-V:C) by way of court-approved plan of arrangement.
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.
The Contact shares will be delisted from the TSX Venture Exchange and an application has been made for Contact to cease to be a reporting issuer in all of the provinces and territories of Canada, other than Quebec.
Contact’s key asset is the 100% owned Pony Creek property – a 4,500-hectare exploration land package, strategically located adjacent to Orla’s South Railroad property in the heart of the Carlin trend in Nevada.
Contact also owns the Green Springs property located in the southern end of the Cortez trend.
Green Springs is an early stage exploration project which is subject to an earn-in right held by Centerra Gold, where Centerra has the right to acquire 70% of the project through completion of a four-year, C$10 million exploration program.
Orla has begun integrating Pony Creek into the company’s exploration activities and intends to increase the exploration budget by C$3 million to enhance continued exploration efforts of the Company. This additional expenditure will increase the total 2024 exploration spend at South Railroad to C$14 million.
Orla’s corporate strategy is to acquire, develop, and operate mineral properties.
The company has two material gold projects – Camino Rojo, located in Zacatecas State, Mexico and South Railroad, located in Nevada, US.
Write to Adam Orlando at Mining.com.au
Images: Contact Gold
