Canada-based mineral exploration company Orla Mining has concluded the acquisition of Contact Gold, which is now its wholly-owned subsidiary.

The move has resulted in the acquisition of all issued and outstanding Contact Gold common shares.

In February this year, Orla sealed a definitive arrangement agreement for the purchase.

This acquisition was valued at around $8.1m (C$10.93m) and further enhanced Orla’s footprint in the prolific Carlin trend in the US state of Nevada.

The consideration for this deal was a 77% premium based on the two companies’ 20-day volume weighted average price on 23 February 2024.

As part of the transaction, former shareholders of Contact Gold received 0.0063 of an Orla common share for each Contact share they held prior to the acquisition.

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With the completion of the deal, Contact shares will be delisted from the TSX Venture Exchange, and steps are being taken for Contact to cease being a reporting issuer in Canada, excluding Quebec.

Contact Gold’s principal asset, the Pony Creek property, spans 4,500 hectares and is situated adjacent to Orla’s South Railroad property on the Carlin trend.

Additionally, Contact owns the Green Springs property at the southern end of the Cortez trend.

Green Springs is an early-stage exploration project, which is currently under an earn-in agreement with Centerra Gold. Centerra has the right to earn a 70% interest in the project by investing $10m in exploration over four years.

Orla has announced plans to integrate Pony Creek into its exploration activities and has committed to increasing its exploration budget by $3m.

This will bring the total exploration expenditure for South Railroad in 2024 to $14m.