Camino Rojo is 50km southeast of the Peñasquito mine in the State of Zacatecas in north-central Mexico

As per terms of the deal, Goldcorp will secure 19.9% of the issued and outstanding common shares of Orla and 2% Net Smelter Return royalty on revenues from all metal production from the project, with excluding metals produced under a joint venture with Orla.

The deal will also allow Orla to purchase up to a 70% stake in future sulphide projects, in addition to providing right to nominate a director to Orla's Board for as long as Goldcorp's equity ownership position is more than 10%.

Subject to customary closing conditions, the deal is expected to be completed in the second half of this year.

The Camino Rojo gold/silver project is an advanced-stage district project, where pre-feasibility study is currently undergoing to assess Camino Rojo as a supplemental source of feed to the existing Peñasquito facility. 

The Represa deposit is located in a broad alluvial pediment within the eastern Mexican fold-belt where folded Mesozoic clastic and carbonate sedimentary units were intruded by intermediate-composition and felsic dikes.

Based in Vancouver of British Columbia, Goldcorp carries out mining operations in the US and Canada.