Orla Mining Loses US$120 Million Investment In Panama After Mining Concessions Denied

Changes to mining laws in Panama are impacting more than just First Quantum Minerals’ (TSX: FM) Cobre Panama operations. Orla Mining (TSX: OLA) this morning revealed it has also been hit hard by modified legislation in the country.

With the passing of Law 407 in Panama, which brought in a moratorium on granting, renewing, or extending mining concessions, Orla has also lost a major project. Panama has rejected requests for the extension of three of Orla’s mining concessions in the country, which consisted of the Cerro Quema Project in the southwest of the country.

READ: First Quantum Moves To Force Arbitration With Panama Over Cobre Panama Mine

Orla had pushed this project to the pre-feasibility stage, spending over US$120 million in the process to outline an open-pit heap leach gold gold project, along with a copper-gold resource and additional exploration targets. The project had an after-tax NPV (5%) of US$176 million, and a proposed mine life of 6 years.

In rejecting the renewal of the mining concessions, Panama declared the region as a reserve area. Panama’s mining code states concessions cannot be granted on a reserve area.

Orla is said to be exploring legal remedies to protect its investments, including taking measures under international law.

Orla Mining last traded at $4.11 on the TSX.


Information for this briefing was found via Sedar and the sources mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

Tudor Gold x American Creek: Consolidating A Massive Gold Project

Aura Minerals: The Era Dorada Underground PEA

Gold Is Now Smart Money’s End Game | Doug Casey

Recommended

Goliath Resources Expands 2025 Drill Program To 60,000 Metres

Emerita Resources Formally Appeals Administrative Ruling On Aznalcóllar Related To 2017 Complaint 

Related News

Orla Mining To Purchase Musselwhite Gold Mine For $810 Million In Cash

Orla Mining (TSX: OLA) is set to transform from a single asset producer to that...

Monday, November 18, 2024, 07:54:50 AM

Orla Mining Posts Q1 Gold Production Of 47,759 Ounces

Orla Mining (TSX: OLA) is reporting this morning that it saw record production levels in...

Monday, April 14, 2025, 08:09:44 AM

Panama Backs Out Of China’s Belt And Road After Rubio Meets With Mulino

Panama declared it will not renew its memorandum of understanding with China’s Belt and Road...

Monday, February 3, 2025, 11:21:00 AM

Trump’s Territorial Ambitions Draw Sharp Responses from Allies and Neighbors

Former US President Donald Trump’s recent statements about territorial expansion have prompted swift reactions from...

Thursday, December 26, 2024, 01:41:00 PM

Fake News! Panama Rejects White House Assertions of Free Canal Passages

The goodwill gained from the recent visit to Panama has been tarnished after the country...

Thursday, February 6, 2025, 10:57:00 AM