TIDMOMI
RNS Number : 6121R
Orosur Mining Inc
30 October 2023
Orosur Mining Inc.
Results for First Quarter ended August 31, 2023
London, October 30th, 2023 . Orosur Mining Inc. ("Orosur" or
"the Company") (TSX-V: OMI) (AIM: OMI) the minerals developer and
explorer with operations in Colombia, Argentina, Nigeria and Brazil
announces its unaudited results for the quarter ended August 31,
2023. All dollar figures are stated in US$ unless otherwise noted.
The unaudited condensed interim financial statements of the Company
for the quarter ended August 31, 2023 and the related management's
discussion and analysis ("MD&A") have been filed and are
available for review on the SEDAR+ website at www.sedarplus.ca. The
financial statements and the MD&A are also available on the
Company's website at www.orosur.ca .
A link to the PDF version of the financial statements is
available here:
http://www.rns-pdf.londonstockexchange.com/rns/6121R_2-2023-10-27.pdf
A link to the PDF version of the MD&A is available here :
http://www.rns-pdf.londonstockexchange.com/rns/6121R_1-2023-10-27.pdf
HIGHLIGHTS
-- In Colombia, negotiations continued with Monte Aguila on the
shareholders agreement which will govern the new mining company to
be owned 51% by Monte Agulia and 49% by Orosur. These discussions
have continued post the period end. Whilst exploration activities
have been wound back, some mapping and surface sampling has been
carried out; a variety of licence processes, such as the
integration of smaller licences have been advanced; and Monte
Aguila has continued to fund the promotion of relationships with
local community groups to strengthen the social licence to operate
the Project.
-- In Brazil, on July 5, 2023, the Company announced that given
the success of the regional stream sediment program performed
across the Company's Ariquemes district, it had decided to move to
the next phase which has targeted two prospects at Oriente Novo (in
the east of the Company's tenements) and at Paraiso in the west and
to the north of the Bom Futuro tin mine. Sampling was performed
during July and August and assays are expected imminently.
-- In Argentina, on May 4, 2023 the Company announced that
mapping and ground magnetic surveys at El Pantano had identified a
major NW-SE structural corridor over 20km long and 5km wide, with
large areas of silicification, alteration and geochemical anomalism
over extensive areas. Mapping to the north of the main structure
has so far identified over 70 quartz veins over an area in excess
of 20km(2) , with textures indicative of cooler temperatures, fully
consistent with the model of a very large low-sulphidation
epithermal system. Mapping of this vein field continued until the
commencement of the winter recess in early June. Soil sampling
assay results were received and continued to add weight to the
geological model with extended anomalism in gold and key pathfinder
elements. Sampling and ground magnetic surveys recommenced after
the winter recess in September with the plan of completing coverage
of the highest priority parts of the project before the end of the
year.
-- In Uruguay the Company's wholly owned subsidiary, Loryser,
continued to focus its activities on the final stages of the
Creditors Agreement. In line with the Creditors Agreement, Loryser
has sold all of its assets. It has paid for the settlements with
all of its former employees; it has finalised the reclamation and
remediation works on the tailings dam and has successfully
concluded a one-year post-closure control phase. Loryser is well
advanced in distributing the proceeds to Loryser's trade creditors
in accordance with the Creditors' Agreement, via a court approved
paying agent.
-- Post the period end, on October 16,2023, the Company
announced that it had signed a joint venture agreement over four
licences in the Nigerian lithium belt. The Company, via a new 100%
owned UK subsidiary, Lithium West Limited ("Lithium West"), may
earn up to 70% equity in the project in two phases: Phase 1 -
Lithium West can earn 51% equity in the project by spending a total
of US$3m over a maximum of three years. Phase 2 - Lithium West can
earn an additional 19% equity in the project, up to a total of 70%,
by spending an additional US$2m over a maximum of two years. Other
prospective areas are currently being examined and it is possible
that additional licences may be added to the project in the near
term.
Financial and Corporate
-- The unaudited condensed interim 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 discontinued operations. This accounting treatment has
been applied to the activities in Uruguay and Chile.
-- On August 31, 2023, the Company had a cash balance of
$3,186,000 (May 31, 2023: $3,748,000). As at the date of this
announcement the Company had a cash balance of $2,350,000.
Louis Castro, Executive Chairman of Orosur said:
"This has been a very busy progressive first quarter for the
Company, with positive advances across all our portfolio. We are
particularly delighted, post period, to add a high quality Lithium
asset in Nigeria with an in situ team, which will allow us to focus
on both our South American activities and on our new asset. "
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States
dollars)
Unaudited
As at As at
August 31, May 31,
2023
$ 2023
$
-------------------------------------------- ------------- ----------
ASSETS
Current assets
Cash 3,186 3,748
Restricted cash 12 12
Accounts receivable and other assets 208 219
Assets held for sale in Uruguay 958 898
-------------------------------------------- ------------- ----------
Total current assets 4,364 4,968
Non-current assets
Property, plant and equipment 137 123
Exploration and evaluation assets 3,787 3,334
-------------------------------------------- ------------- ----------
Total assets 8,288 8,425
-------------------------------------------- ------------- ----------
LIABILITIES AND DEFICIT
Current liabilities
Accounts payable and accrued liabilities 269 336
Liability of Chile discontinued operation 2,248 2,204
Liabilities held for sale in Uruguay 12,719 12,546
-------------------------------------------- ------------- ----------
Total current liabilities 15,236 15,086
-------------------------------------------- ------------- ----------
Deficit
Share capital 69,341 69,341
Share-based payments reserve 10,539 10,539
Currency translation reserve (2,398) (2,725)
Deficit (84,430) (83,816)
-------------------------------------------- ------------- ----------
Total deficit (6,948) (6,661)
-------------------------------------------- ------------- ----------
Total liabilities and deficit 8,288 8,425
-------------------------------------------- ------------- ----------
Condensed Interim Consolidated Statements of Loss and Comprehensive
Loss
(Expressed in thousands of United States
dollars)
(Except common shares and per share
amounts)
Unaudited
Three Months Three Months
Ended Ended
August 31, August 31,
2023 2022
$ $
--------------------------------------------- -------------- ----------------------
Corporate and administrative expenses (398) (407)
Exploration expenses (27) (62)
Other income 6 6
Net finance cost (4) (2)
Gain on fair value of warrants - 76
Foreign exchange (loss) gain net 59 (39)
--------------------------------------------- -------------- ----------------------
Net (loss) for the period for continuing
operations (364) (428)
(Loss) income from discontinued operations (250) 71
--------------------------------------------- -------------- ----------------------
Net (loss) for the period (614) (357)
Item which may be subsequently reclassified
to profit or loss:
Cumulative translation adjustment 327 (505)
--------------------------------------------- -------------- ----------------------
Total comprehensive (loss) for the period (287) (862)
--------------------------------------------- -------------- ----------------------
Basic and diluted net (loss) income
per share for
- continuing operations (0.00) (0.00)
- discontinued operations (0.00) 0.00
Weighted average number of common shares
outstanding 188,560 188,432
--------------------------------------------- -------------- ----------------------
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States
dollars)
Unaudited Three Months Three Months
Ended Ended
August 31, August 31,
2023 2022
$ $
------------------------------------------------ -------------- --------------
Operating activities
Net loss for the period for continued
and discontinued operations (614) (357)
Adjustments for
Depreciation / Write downs 2 -
Gain on fair value of warrants - (76)
Gain on sale of property, plant and equipment - (4)
Foreign exchange and other 109 (266)
Changes in non-cash working capital items:
Accounts receivable and other assets 14 (9)
Inventories - 17
Accounts payable and accrued liabilities 70 (81)
------------------------------------------------ -------------- --------------
Net cash used in operating activities (419) (776)
Investing activities
Decrease in restricted cash - 150
Proceeds received for sale of property,
plant and equipment - 4
Purchase of property, plant and equipment (9) -
Proceeds received from exploration and
option agreement - 37
Exploration and evaluation expenditures (171) (61)
------------------------------------------------ -------------- --------------
Net cash (used in) provided by investing
activities (180) 130
Net change in cash (599) (646)
Net change in cash classified within
assets held for sale 37 59
Cash, beginning of period 3,748 4,221
------------------------------------------------ -------------- --------------
Cash end of period 3,186 3,634
------------------------------------------------ -------------- --------------
Operating activities
- continuing operations (382) (713)
- discontinued operations (37) (63)
Investing activities
- continuing operations (180) 126
- discontinued operations - 4
------------------------------------------------ -------------- --------------
F or further information, visit www.orosur.ca , follow on
twitter @orosurm or please contact:
Orosur Mining Inc
Louis Castro, Chairman,
Brad George, CEO
info@orosur.ca
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & 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 Communications
Tim Thompson
Mark Edwards
Fergus Mellon
orosur@flagstaffcomms.com Tel: +44 (0)207 129 1474
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.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in policies of the TSX Venture
Exchange) accepts responsibility for the adequacy or accuracy of
this release.
About Orosur Mining Inc.
Orosur Mining Inc. (TSXV: OMI; AIM: OMI) is a minerals explorer
and developer currently operating in Colombia, Argentina, Nigeria
and Brazil,
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, Argentina, Nigeria and Brazil and
the funding in Colombia from Minera Monte Águila of those plans,
Minera Monte Águila'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 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
MD&A and the Annual Information Form. 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.
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END
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