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Orla Mining Down 7% as It Reports a Work Stoppage and Blockade at the Camino Rojo Mine in Mexico

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Orla Mining (OLA.TO), down 7% on last look, on Monday said an illegal work stoppage and blockade is underway at its Camino Rojo Mine in Mexico. Mine operations have been temporarily halted.

The work stoppage and blockade are connected with negotiations for a worker productivity bonus and a profit-sharing entitlement. Orla had previously paid workers the maximum profit-sharing entitlement stipulated under Mexican law, the company said.

While the company and union representatives negotiated the productivity bonus, members of the unionized workforce objected to the amount paid under the entitlement and initiated the illegal stoppage and blockade, a statement added.

A meeting of company representatives and the union along with the department of federal labor conciliation is scheduled for Tuesday, June 2. Given the duration of the production interruption and the nature of heap leach processing, Orla said it will assess any potential impact of the work stoppage on its full-year production guidance for Camino Rojo and provide an update in due course.

Orla shares were last seen down $1.30 to $17.20 on the Toronto Stock Exchange.

Price: $17.23, Change: $-1.27, Percent Change: -6.86%

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