This purchase price represents a 77% premium based on the companies’ 20-day volume weighted average price as of the previous trading day. Following the completion, Contact shareholders will own approximately 0.7% of Orla’s outstanding shares.
Shares in Contact Gold surged 83.3% to C$0.028 by midday Monday on the announcement, giving the Canadian junior a market capitalization of C$7.9 million. Meanwhile, Orla Mining’s stock was down 7.3% to C$4.55 apiece for a market capitalization of C$1.4 billion.
This move, says Orla, allows the company to consolidate landholdings within the Railroad-Pinion district, combining its core growth project, South Railroad, with Contact’s 45-km2 Pony Creek oxide gold project located next doors. Both project are located on the famed Carlin trend of Nevada.
South Railroad represents a feasibility-stage, open-pit mine project that Orla is advancing towards a construction decision. It currently…
