Orla Mining Ltd. secured the previously announced project finance facility of US$125 million to develop its Camino Rojo gold project in Mexico, and the board approved the start of construction spending.
Construction is expected to start in the first half of 2020, according to a Dec. 18 news release.
The company entered into a loan agreement with Trinity Capital Partners Corp. and certain other lenders for the five-year credit facility, which will bear interest at 8.8% per annum.
Orla said it was notified by the Mexican environment department, SEMARNAT, that its change of land use permit, one of the two key permits required for Camino Rojo's development, was approved, while a review of an application for the other key permit, the environmental impact statement, is ongoing.
A feasibility study in June for Camino Rojo outlined an after-tax net present value of US$142 million, at a 5% discount rate, with a 28.7% internal rate of return. The study pegged total life-of-mine capital at US$144 million, with a US$123 million initial capital cost.