Orla Mining has entered a definitive agreement to acquire the Musselwhite Gold Mine from Newmont for $810 million (C$1.14 billion) in upfront cash, with an additional $40 million contingent on future gold prices. This transformative acquisition is set to significantly enhance Orla’s gold production and free cash flow, marking a pivotal step in the company’s growth strategy. The transaction will be funded through a mix of cash reserves, undrawn debt facilities, new borrowings, a gold pre-pay arrangement, and convertible notes.
Strategic Portfolio Expansion
Musselwhite, a well-established mine with over 25 years of production history, will complement Orla’s existing operations, including the Camino Rojo oxide mine. This acquisition is expected to more than double Orla’s annual gold production to over 300,000 ounces, with further expansion projected to exceed 500,000 ounces by 2027, following the start of production at the South Railroad Project.
Located on the shores of Opapimiskan Lake in northwestern Ontario, Musselwhite has produced nearly six million ounces of gold to date and continues to show strong potential for resource growth. Orla plans to build on this success by leveraging historical drilling data and exploring an additional 2-3 kilometers of mineralized strike beyond the current reserves.
Significant Free Cash Flow and Growth Potential
The Musselwhite mine is expected to generate over $150 million in free cash flow annually for the next six years, providing a substantial boost to Orla’s financial performance. The mine’s established infrastructure and ongoing resource growth position it as a key driver of Orla’s long-term profitability.
Leadership Vision
Jason Simpson, President and CEO of Orla Mining, described the acquisition as a “major milestone” for the company. He highlighted the strategic value of expanding Orla’s production base and establishing a presence in Ontario, one of the world’s premier mining jurisdictions. Orla plans to optimize Musselwhite’s operations, invest in its future, extend its mine life, and grow reserves and resources to ensure sustainable, long-term success.
This acquisition marks a bold step forward for Orla Mining, cementing its position as a leading player in the gold mining industry while reinforcing its commitment to operational excellence and resource expansion.
