06:26 AM EST, 11/18/2024 (MT Newswires) -- Orla Mining ( ORLA ) Monday signed a definitive agreement to acquire the Musselwhite Gold Mine in Ontario from Newmont ( NEM ) for upfront cash consideration of US$810 million and gold-price linked contingent consideration of $40 million.

According to a statement, the cash consideration will be financed through a combination of cash, existing undrawn debt capacity, new indebtedness, a gold pre-pay facility, and convertible notes led by Orla's existing cornerstone investors. It said there is no upfront equity dilution associated with the transaction.

Monday's statement said the transaction adds a second "high quality, high margin producing asset" to Orla's portfolio. It added the combination of the proven Musselwhite mine and Orla's low-cost Camino Rojo oxide operation more than doubles the company's annual gold production to over 300 koz, with expected near-term growth to over 500 koz of annual gold production as the South Railroad Project is expected to commence production in 2027.

Orla said the transaction will also "significantly enhance" its free cash flow, providing additional cash for the execution of Orla's organic growth plans.