BRIEF-Orla Mining and Pershimco Resources announce merger

Wed Sep 14, 2016 3:57pm EDT
 
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Sept 14 (Reuters) - Orla Mining :

* Orla Mining and Pershimco Resources announce merger

* Existing Orla shareholders to hold about 36.2 pct of newco shares on a fully diluted basis with remaining 19.1 pct to be held by investors

* Each Pershimco shareholder will receive 0.19 of a newco share for each Pershimco common share

* In addition, each Pershimco shareholder will receive 0.04 of a class a common share of newco for each Pershimco share held

* Under terms of arrangement agreement, each Pershimco shareholder will receive 0.19 of a newco share for each Pershimco common share held

* Existing Pershimco shareholders will hold approximately 44.7 pct of newco shares on a fully diluted in money basis

* Orla Mining says intends to raise up to c$50 million via a private placement of subscription receipts at price of $1.75/subscription receipt

* Says Marc Prefontaine will be CEO of the new company Source text for Eikon: Further company coverage: