Expanding presence in Nevada: Orla Mining strengthens gold projects with acquisition of Contact Gold

The mining industry evolves with strategic acquisitions. Orla Mining's purchase of Contact Gold showcases Nevada's allure for gold exploration, underlining mergers' importance.

The global mining industry remains a landscape of constant evolution, with companies seeking to expand their portfolios and strengthen their market position through strategic acquisitions. A recent and notable example of this dynamic is Orla Mining's acquisition of Contact Gold, a transaction that not only underscores the ongoing appeal of Nevada as a primary destination for gold exploration and production but also highlights the significance of mergers and acquisitions as a strategic tool for business growth in the mining sector.

Orla Mining, a leading precious metals producer, has recently announced its expansion in Nevada through the acquisition of Contact Gold and its two exploration-stage properties, covering a total of 117.4 km² of mineral-rich holdings. Structured as an all-stock transaction, each Contact share is valued at 0.0063 of an Orla common share, equivalent to C$0.03 per Contact share or a total purchase price of approximately $8.1 million. This purchase price represents a 77% premium based on the 20-day volume-weighted average prices of both companies up to the previous trading day. As a result, Contact shareholders will own approximately 0.7% of Orla's outstanding shares. 

Orla's acquisition of Contact Gold and its Nevada properties is a strategic move that underscores the importance of geographic and operational synergies in the mining sector. By consolidating land holdings within the Railroad-Pinion district, Orla not only expands its project portfolio but also strengthens its growth potential in one of the world's most prolific gold mining regions. 

“This transaction strengthens our land position in Nevada along the Carlin trend. Contact’s Pony Creek property is a valuable complement to our South Railroad Project, one our key growth opportunities. We look forward to making the necessary investments to unlock the combined potential of this now larger, contiguous and highly prospective land package.”  – Jason Simpson, President and CEO, Orla Mining.

The addition of Contact Gold's properties to Orla Mining's portfolio promises to be a valuable complement to its flagship growth project, South Railroad, a feasibility-stage open-pit mine project currently hosting 1.8 million ounces of measured and indicated mineral resources. 

Contact's Pony Creek property, with potential to add to these resources, presents a significant opportunity for Orla to further increase its footprint in Nevada's Carlin gold trend. The acquisition of Contact Gold by Orla Mining is a testament to the dynamic nature of the mining industry, where growth strategies often involve expanding and consolidating land and mining projects. This transaction not only strengthens Orla's position in Nevada but also highlights the untapped potential in the region, offering new opportunities for gold exploration and resource development.