Canada’s Orla Mining (TSX: OLA) is buying Newmont’s (NYSE: NEM) Musselwhite gold mine in Ontario for $850 million, enabling it to more than double production of the precious metal, at times when prices are hovering near record highs.
Orla will pay Newmont $810 million in cash, with additional installments contingent on gold prices. Two tranches will be due if gold exceeds $2,900/ounce and $3,000/ounce during the first and second full-year periods, following the deal’s expected closure in the first quarter of 2025.
Musselwhite, an underground gold mine in northwestern Ontario, has been operational for over 25 years. It had 1.5 million ounces of proven and probable gold reserves as of Dec. 31, 2023.
For Orla, which currently operates the Camino Rojo mine in Mexico, acquiring Musselwhite is a transformative step. The deal will elevate Orla from a single-asset producer to a multi-asset miner, more than doubling its gold output to 300,000 ounces per year.
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