TIDMOMI
RNS Number : 1782O
Orosur Mining Inc
30 January 2023
Orosur Mining Inc.
Second Quarter Results for 2022/23
London, January 30th, 2023 . Orosur Mining Inc. ("Orosur" or
"the Company") (TSXV/AIM: OMI ), a South American-focused minerals
explorer and developer, is pleased to announce its results for the
second quarter ended November 30, 2022 ("Q2 23" or the "Quarter").
All dollar figures are stated in US$ unless otherwise noted. The
unaudited condensed interim financial statements of the Company for
the quarter ended November 30, 2022 and the related management's
discussion and analysis have been filed and are available for
review on the SEDAR website at www.sedar.com. They are also
available on the Company's website at www.orosur.ca.
Highlights of the Second Quarter Results for 2022/23
Colombia
-- On 6th September 2022, the Company announced assay results
from the Pepas prospect to the north of Anza, including assay
results from PEP001 which returned a substantial, high-grade
intersection of 150.9m @ 3.00g/t Au (from surface). Also announced
on that day, that Monte Aguila had informed the Company that it had
met its expenditure of US$4m for the year.
-- On 9(th) September 2022, the Company announced that its JV
partner, Monte Águila provided the Company with a Phase 1 Earn-In
Notice, having completed all of the Phase 1 obligations, including
investing US$10 million in the Anza Project. The Company and Monte
Aguila will begin the process of forming a new mining company
("Mining Company") that will hold title to the Anza Project's
concessions and applications. The Company was also notified by
Monte Aguila that in accordance with the Exploration Agreement, it
will enter Phase 2 following negotiation and execution of a joint
venture agreement to govern the operations of the Mining Company.
Once the Mining Company is formed, which is expected to take
several months, Orosur will initially have 49% ownership and Monte
Aguila, 51% ownership in the Mining Company, which will be managed
by Monte Aguila.
-- On 21(st) October 2022, the Company announced assay results
from four additional diamond drill holes at Pepas and Pupino. Both
the Pepas and Pupino prospects are located in the northern region
of the Anzá Prospect, roughly 12km and 8km respectively north
northeast from the central APTA prospect that had seen most
drilling at Anzá up until early 2022. At PEPAS, holes PEP005 and
PEP007 were drilled from the same pad as PEP001 but in different
directions. Both holes returned substantial gold intersections,
with the best at PEP007 being 80.55m @ 3.05g/t Au from surface
(including 41.75m @ 5.24g/t).Two additional holes are currently
underway from new pads in an attempt to better define the geometry
of the mineralised body at Pepas.
-- On 2(nd) December 2022, after the period end, the Company
announced assay results from another 4 holes at Pepas, holes
PEP002,006,008 and 009. Holes PEP002 and 006 did not yield
significant results. Two new drill pads were constructed to drill
holes PEP008 and PEP009. Both holes intersected mineralised
structures, largely as expected, but with lower levels of gold
mineralisation than intersected in previous drilling. Near term
focus will now shift away from drilling to focus on field mapping,
sampling and trenching activities will continue across the Project
to define further drilling targets, including additional surface
works specifically in the Pepas prospect area.
-- On 17 January 2023, the Company announced that negotiations
to complete the Mining Company Constituent Documents with Minera
Monte Aguila are progressing and that the US$2 million Phase 2
Payment will be paid soon. The formation of the new Mining Company,
which will take several months, is underway. Once formed, the
Mining Company will be owned 49% by Orosur and 51% by Minera Monte
Aguila who will also be the manager. MMA may earn an additional 14%
ownership in the Mining Company if it has spent US$20 million in
qualifying exploration expenditures on the Project on or prior to
the fourth anniversary of the parties entering into the Mining
Company Constituent Documents. If the Phase 2 earn-in is completed,
MMA would own 65% of the Mining Company and the Company would own
the remaining 35%.
Uruguay
-- In Uruguay, the Company's wholly owned subsidiary, Loryser,
continues to focus its activities on the implementation of the
Creditors Agreement and the sale of its Uruguayan assets. Loryser
has successfully finalised the reclamation and remediation works on
the tailings dam and has now started a one-year post-closure
control phase.
-- During the course of the year, Loryser agreed and paid for
the settlements with all of its former employees, with the proceeds
received from the sale of certain of its assets.
-- Good progress is being made on the sale of Loryser's other
assets including plant and equipment. The proceeds from all of
these sales will be used to pay liabilities in Uruguay in
connection with the aforementioned Creditors Agreement.
Financial and Corporate
-- The unaudited consolidated financial statements have been
prepared on a going concern basis under the historical cost method
except for certain financial assets and liabilities which are
accounted for as Assets and Liabilities held for sale (at the lower
of book value or fair value) and Profit and Loss from discontinuing
operations. This accounting treatment has been applied to the
activities in Uruguay and Chile.
-- On 30(th) November 2022, the Company had a cash balance of
US$2,906k (31(st) May 2022, US$4,221k). As at the date of this
announcement the Company had a cash balance of US$3,549k.
-- Post the period end, on 7(th) December 2022, all of the
outstanding 10,897,058 warrants expired and so the fully diluted
share capital of the Company as at the date of this announcement is
199,885,299.
For further information, visit www.orosur.ca , follow on twitter
@orosurm or contact :
Orosur Mining Inc
Louis Castro, Chairman,
Brad George, CEO
info@orosur.ca
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Joint Broker
Jeff Keating / Kasia Brzozowska
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker
James Pope
Tel: +44 (0)20 3657 0050
Flagstaff Strategic and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
Tel: +44 (0) 207 129 1474
orosur@flagstaffcomms.com
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has
been incorporated into UK law by the European Union (Withdrawal)
Act 2018. Upon the publication of this announcement via Regulatory
Information Service ('RIS'), this inside information is now
considered to be in the public domain.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX-V: OMI; AIM: OMI) is a minerals explorer
and developer focused on identifying and advancing projects in
South America. The Company currently operates in Colombia, Brazil
and has discontinued operations in Uruguay.
Forward Looking Statements
All statements, other than statements of historical fact,
contained in this news release constitute "forward looking
statements" within the meaning of applicable securities laws,
including but not limited to the "safe harbour" provisions of the
United States Private Securities Litigation Reform Act of 1995 and
are based on expectations estimates and projections as of the date
of this news release. Forward-looking statements include, without
limitation, the exploration plans in Colombia and Brazil and the
funding from Newmont/Agnico of those plans, Newmont/Agnico's
decision to continue with the Exploration and Option agreement, the
ability for Loryser to continue and finalize with the remediation
in Uruguay, the ability to implement the Creditors' Agreement
successfully as well as continuation of the business of the Company
as a going concern and other events or conditions that may occur in
the future. The Company's continuance as a going concern is
dependent upon its ability to obtain adequate financing, to reach
profitable levels of operations and to reach a satisfactory
implementation of the Creditor's Agreement in Uruguay. These
material uncertainties may cast significant doubt upon the
Company's ability to realize its assets and discharge its
liabilities in the normal course of business and accordingly the
appropriateness of the use of accounting principles applicable to a
going concern. There can be no assurance that such statements will
prove to be accurate. Actual results and future events could differ
materially from those anticipated in such forward-looking
statements. Such statements are subject to significant risks and
uncertainties including, but not limited, those as described in
Section "Risks Factors" of the Company's MDA. The Company disclaims
any intention or obligation to update or revise any forward-looking
statements whether as a result of new information, future events
and such forward-looking statements, except to the extent required
by applicable law.
Qualified Persons Statement
The information in this news release was compiled, reviewed and
verified by Mr. Brad George, BSc Hons (Geology and Geophysics),
MBA, Member of the Australian Institute of Geoscientists (MAIG),
CEO of Orosur Mining Ltd and a qualified person as defined by
National Instrument 43-101. Orosur Mining staff follow standard
operating and quality assurance procedures to ensure that sampling
techniques and sample results meet international reporting
standards.
Drill core is split in half over widths that vary between 0.3m
and 2m, depending upon the geological domain. One half is kept on
site in the Minera Anzá core storage facility, with the other sent
for assay. Industry standard QAQC protocols are put in place with
approximately 20% of total submitted samples being blanks, repeats
or Certified Reference Materials (CRMs).
Samples are sent to the Medellin preparation facility of ALS
Colombia Ltd, and then to the ISO 9001 certified ALS Chemex
laboratory in Lima, Peru. 30 gram nominal weight samples are then
subject to fire assay and AAS analysis for gold with gravimetric
re-finish for overlimit assays of >10g/t. ICP-MS Ultra-Trace
level multi-element four-acid digest analyses is also undertaken
for such elements as silver, copper, lead and zinc, etc.Gold
intersections are reported using a lower cut-off of 0.3g/t Au over
3m.
Orosur Mining Inc.
Condensed Interim Consolidated Statements
of Financial Position (Expressed in thousands
of United States dollars)
Unaudited As at As at
November 30, May 31,
2022 2022
------------------------------------------------ ------------------------------------ -------------------
ASSETS
Current assets
Cash and cash equivalents $ 2,906 $ 4,221
Restricted cash 83 353
Accounts receivable and other assets 155 186
Assets held for sale in Uruguay 2,390 1,160
------------------------------------------------ ------------------------------------ -------------------
Total current assets 5,534 5,920
Non-current assets
Property, plant and equipment 92 113
Exploration and evaluation assets Colombia 4,602 5,441
------------------------------------------------ ------------------------------------ -------------------
Total assets $ 10,228 $ 11,474
------------------------------------------------ ------------------------------------ -------------------
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 258 $ 389
Liabilities of Chile discontinued operation 2,102 2,058
Warrant liability - 168
Liabilities held for sale in Uruguay 12,998 13,134
------------------------------------------------ ------------------------------------ -------------------
Total current liabilities 15,358 15,749
------------------------------------------------ ------------------------------------ -------------------
Deficit
Share capital 69,341 69,339
Contributed surplus 10,539 10,540
Currency translation reserve (3,060) (2,125)
Deficit (81,950) (82,029)
------------------------------------------------ ------------------------------------ -------------------
Total deficit (5,130) (4,275)
------------------------------------------------ ------------------------------------ -------------------
Total liabilities and deficit $ 10,165 $ 11,474
------------------------------------------------ ------------------------------------ -------------------
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Loss and
Comprehensive Income and Loss (Expressed in thousands of United
States dollars)
Unaudited
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
November 30, November November November
30, 30, 30,
2022 2021 2022 2021
------------------------------------------------------------------------------------------ ----------------------- ----------------------- ------------------------
Operating expenses
Corporate and administrative expenses $
(436) $ (565) $ (843) $ (885)
Exploration expenses (185) (10) (247) (10)
Share-based compensation - (147) - (315)
Other income 2 1 8 2
Net finance cost (3) (2) (5) (3)
Gain on fair value of warrants 92 501 168 873
Foreign exchange (loss) gain net (13) (33) (52) (102)
------------------------------------------------------------------------------------------ ----------------------- ----------------------- ------------------------
Net (loss) for the period for continued
operations $ (543) Other comprehensive (loss) $ (255) $ (971) $ (440)
income:
Cumulative translation adjustment $ (430) $ 7 $ (935) $ (194)
------------------------------------------------------------------------------------------ ----------------------- ----------------------- ------------------------
Total comprehensive (loss) for
the period from continued
operations (973) (248) (1,906) (634)
Income (loss) from discontinued
operations 979 1,601 1,050 58
-------------------------------- -------------------------------------------------------- ----------------------- ----------------------- ------------------------
Total comprehensive income
(loss)
for the period 6 1,353 (856) (576)
Basic and diluted net (loss)
income
per share for continued
operations $ (0.00) $ (0.00) $ (0.01) $ (0.00)
Basic and diluted net (loss)
income
per share for discontinued
operations $ 0.01 $ 0.01 $ 0.01 $ 0.00
-------------------------------- ---------------------- -------------------------------- ------- -------------- ------- -------------- -------- --------------
Weighted average number of
common
shares outstanding 188,552 188,420 188,536 188,420
-------------------------------- ---------------------- -------------------------------- ------- -------------- ------- -------------- -------- --------------
Orosur Mining Inc.
Consolidated Statements of Cash Flows (Expressed
in thousands of United States dollars)
Three Months Three Months
Ended Ended
November 30, November 31,
2022 2021
Operating activities
Net loss for the year for continued and discontinued
operations $ 79 $ (382)
Adjustments for:
Share-based payments - 315
Labour provision adjustments - (1,499)
Obsolescence provision (3,107) (300)
Fair value of warrants (168) (873)
Gain on sale of property, plant and equipment (1,396) (111)
Foreign exchange and other (163) (201)
Changes in non-cash working capital items:
Accounts receivable and other assets (101) (86)
Inventories 3,419 716
Accounts payable and accrued liabilities (37) 981
----------------------------------------------------- ------------------------- -------------------
Net cash used in operating activities (1,474) (1,234)
Investing activities
Increase (decrease) in the restricted cash 270 (719)
Proceeds received for sale of property, plant
and equipment 545 111
Environmental rehabilitation provision - (477)
Proceeds received from exploration and option
agreement 85 1,077
Exploration and evaluation expenditures (138) (1,619)
----------------------------------------------------- ------------------------- -------------------
Net cash provided by investing activities 761 (2,048)
Financing activities
Proceeds from the sale of treasury shares - 1,140
2 -
Net cash provided by financing activities 2 1,140
----------------------------------------------------- ------------------------- -------------------
Net Change in cash and cash equivalents (711) (2,176)
Net change in cash classified within assets
held for sale (604) 547
Cash and cash equivalents, beginning of year 4,221 6,958
----------------------------------------------------- ------------------------- -------------------
Cash and cash equivalents, end of year $ 2,906 $ 5,329
----------------------------------------------------- ------------------------- -------------------
Operating activities
- continued operations (1,533) (1,087)
- discontinued operations 59 (181)
Investing activities
- continued operations 216 (1,682)
- discontinued operations 545 (366)
Financing activities
- continued operations 2 1,140
----------------------------------------------------- ------------------------- -------------------
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END
IR SEUEFUEDSEEF
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