Canadian gold miner Orla Mining has gained the backing of two major proxy advisory firms for its proposed acquisition of the Musselwhite mine from Newmont.

The firms have recommended that shareholders vote in favour of the $850-million acquisition, along with a related private placement of convertible notes and common share purchase warrants.

The private placement, involving Pierre Lassonde and Fairfax Financial Holdings, will provide funding for a portion of the acquisition cost.

Orla urged shareholders to cast their votes ahead of the January 17 proxy deadline. A special meeting to consider the acquisition and private placement is scheduled for January 21, at the company’s Vancouver office.

Orla’s board of directors, excluding Newmont representative Scott Langley, unanimously recommended that shareholders vote in favour of the resolutions.

For Orla, which currently operates the Camino Rojo mine, in Mexico, the Musselwhite transaction is transformative. It will turn the company from a single-asset producer to a multi-asset miner, more than doubling its gold output to 300 000 oz/y.

Through the development of the South Railroad project, in Nevada, Orla has a pathway to 500 000 oz/y.

Musselwhite, located on the shore of Opapimiskan Lake in north-western Ontario, is expected to generate more than $150-million in average yearly free cash flow over the next six years. This strong cash flow, combined with the revenue from Camino Rojo, will enable Orla to self-fund its growth initiatives, including continued investment in Musselwhite’s development, the South Railroad project, the Camino Rojo sulphides project, and exploration in Canada, Mexico, and the US.