07:16 AM EST, 11/18/2024 (MT Newswires) -- Orla Mining ( ORLA ) said Monday it has signed a definitive agreement to acquire Musselwhite Gold Mine in Ontario from Newmont Corporation for $810 million in cash and $40 million in gold-price linked contingent consideration.

Orla Mining ( ORLA ) will finance the transaction through a mix of debt, a gold pre-pay facility, and convertible notes, with no upfront equity dilution.

Orla Mining ( ORLA ) said the acquisition is doubling its annual gold production to over 300,000 ounces and positioning it for future growth to 500,000 ounces by 2027.

Musselwhite has proven and probable reserves of nearly 1.5 million ounces and an inferred resource of 0.19 million ounces.

The mine's current life expectancy is seven years, with projected annual production of 202,000 ounces at an all-in sustaining cost of $1,269 per ounce.