Orla Mining Ltd. announced that it would issue an aggregate principal amount of US$200 million of senior unsecured convertible notes to cornerstone shareholders, led by Fairfax Financial Holdings Limited, Pierre Lassonde, and Trinity Capital Partners Corporation.

Under the terms of the commitment letter, the convertible notes will have an interest rate of 4.5 percent per annum, payable in cash and a maturity date five years from the date of issuance. 

Proceeds from the non-brokered private placement will be used to finance a portion of Orla’s concurrently announced transaction to expand into Canada through the acquisition of the Musselwhite Gold Mine in Ontario from Newmont Corporation. Closing of the private placement is conditional on the successful closing of the acquisition.

Torys is acting as counsel to Fairfax with a team that includes David Chaikof and Janan Paskaran (corporate/securities).