Independent Proxy Advisory Firms Recommend Orla Shareholders Vote FOR the Arrangement Resolution in Connection with Proposed Business Combination with Equinox Gold
Orla’s proxy advisory backs the Equinox merger as Q2 production beats guidance following the resolution of the Camino Rojo blockade.
Independent proxy advisory firm ISS has recommended that shareholders vote in favor of the proposed business combination with Equinox Gold Corp. The Board of Directors has unanimously recommended the Arrangement Resolution, which remains a court-approved plan of arrangement under the Canada Business Corporations Act. A special meeting of shareholders is scheduled for July 22, 2026, with a proxy voting deadline of July 20, 2026. The transaction is on track for a Q3 2026 closing, having already received Canadian competition approval and an interim court order.
Contextual Q2 2026 operating results, released on July 9, reported 88,265 ounces of gold produced, driven by outperformance at the Musselwhite mine. At Camino Rojo, operations returned to normal on June 5 following a brief labor stoppage, and a productivity bonus agreement was ratified on June 24. Orla Mining Ltd. remains on track for its 2026 production guidance of 340,000 to 360,000 ounces and AISC guidance of $1,550 to $1,750 per ounce.
Orla Mining Ltd. (OLA) received an Institutional Shareholder Services (ISS) recommendation, a procedural milestone highly expected for a transaction announced on May 13, 2026. This development does not alter the fundamental economics of the deal.
The primary drivers behind the company's recent performance are a second-quarter operational beat and the clean resolution of the Camino Rojo labor dispute. The market had previously priced in execution risk and labor friction; the operational success and resolution of the dispute have removed a near-term overhang.
Despite these positive developments, the stock has declined approximately 53% from its March 2026 high of $29.67 to a July 9 close of $13.79. This steep decline suggests the market is discounting merger dilution, broader sector weakness, or pricing in a wider arbitrage spread.
Orla Mining Ltd. (OLA) operates two primary producing assets: Musselwhite in Ontario, Canada, and Camino Rojo in Zacatecas, Mexico. Musselwhite is a high-grade underground mine averaging approximately 6.3 g/t head grade with strong recovery rates of about 95%. Camino Rojo is an open-pit heap leach operation that is transitioning toward an underground expansion.
The proposed merger with Equinox Gold will create a combined entity with approximately 1.1 million ounces of expected annual production in 2026. This new entity will be anchored by three long-life Canadian mines—Greenstone, Valentine, and Musselwhite—along with assets in the USA, Mexico, and Nicaragua.