TIDMOMI
RNS Number : 1087K
Orosur Mining Inc
31 August 2021
Orosur Mining Inc . - Full Year 2021 Results
Toronto, August 30, 2021 . Orosur Mining Inc. ("Orosur" or "the
Company") (TSX: OMI) (AIM: OMI) announces its audited results for
the fiscal year ended May 31, 2021. All dollar figures are stated
in US$ unless otherwise noted. The audited financial statements of
the Company for the year ended May 31, 2021; the related
management's discussion and analysis ("MD&A"); the annual
information form ("AIF") and the Forms 52-109F1 have all been filed
and are available for review on the SEDAR website at www.sedar.com
. The financial statements, the MD&A and the AIF are also
available on the Company's website at www.orosur.ca .
HIGHLIGHTS
Colombia
-- On 30(th) September 2020, Newmont Corporation, entered into a
joint venture with Agnico Eagle Mines Limited ("Agnico") whereby
the two companies jointly assumed and will advance Newmont's prior
rights and obligations with respect to the Anzá Project in Colombia
on a 50:50 basis, with Agnico as operator of the joint venture.
Agnico's and Newmont's JV vehicle has been renamed Minera Monte
Águila .
-- Following receipt of exploration funds from Minera Monte
Águila , Minera Anzá began the process of re-establishing its field
camp at the Anzá project in readiness for commencement of field
operations. A substantial team of geoscientists and support staff
were recruited to manage the work.
-- Drilling operations commenced on the 15(th) of November 2020
and a total of some 10,000m have been drilled to date.
-- Four announcements have been made related to assay results
from the ongoing drilling campaign - on 25(th) January 2021; 22(nd)
February 2021; 4(th) May 2021; and, 6(th) July 2021. Key
intersections include:
MAP-072 4.1m @ 6.52g/t Au, 29.73g/t Ag and 0.28% Zn from 108m .
5.90m @ 4.55g/t Au, 2.74g/t Ag and 0.30% Zn from 171.1m, and
70.50m @ 3.53g/t Au, 9.33g/t Ag and 1.62% Zn from 184.80m
MAP-073 21.60m @ 6.02g/t Au, 6.02g/t Ag and 3.23 %Zn from 271.75m
MAP-074 5.20m @ 1.17g/t Au 4.97g/t Ag and 3.02% Zn from 195.40m
MAP-075 19.85m @ 0.90g/t Au 2.17 g/t Ag and 6.46% Zn from 226.15m
MAP-076 12.25m @ 5.39g/t Au, 1.65 g/t Ag and 0.18 % Zn from 228.65m
MAP-079 23.75m @17.40g/t Au, 1.89g/t Ag, 0.19% Zn
MAP- 082 29.45m @2.50g/t Au, 1.95g/t Ag, 1.08% Zn
MAP- 089 59.55m @9.61g/t Au, 6.23g/t Ag, 3.75% Zn
MAP- 091 61.75m @ 2.05g/t Au, 3.3g/t Ag, 0.82% Zn
-- A number of samples remain at the laboratory of ALS in Peru,
which has experienced substantial delays in turnaround times due to
Covid related staff shortages. These issues are slowly being
resolved and it is anticipated that assay delays will be reduced
going forwards
-- Apart from drilling at the APTA prospect, work commenced on
regional mapping and sampling across the wider lease holding. A
large program of BLEG sampling was commenced, which once analyzed
should provide vectors to more targeted programs in following
quarters. Initial results have been promising, with two new
prospect areas identified and named for future reference, Pupino
and Pepas.
-- The Company has commenced work on converting the last of its
secure license applications to granted status so that they can be
accessed for exploration work later in the year.
Uruguay
-- In Uruguay, the Company has focused its activities on the
implementation of the Creditors Agreement, which was approved by
the Court in September 2019, and on the sale of the assets of its
Uruguayan subsidiary Loryser. As part of that Agreement, Orosur
issued in December 2019,10,000,000 Orosur common shares to a trust
for the benefit of Loryser's creditors as contemplated in the
court-approved Creditors Agreement.
-- At the same time, and in line with Company's expectations,
during Q3 2020, Loryser signed a Settlement Agreement with DINAMA
(Uruguay environmental agency) in order to recover the $1,326,000
from an environmental guarantee it had executed previously.
Pursuant to the Settlement Agreement, Loryser is continuing with
the reclamation of the tailings dam and Dinama will pay in
instalments upon completion of a nine-phased closure plan. The
agreement has been in effect all year after getting final approval
from the Audit Tribunal, who oversees all Governmental accounts.
The reclamation is progressing well. To date, four payments
totalling $957,000 have been received from DINAMA.
-- Good progress is being made on the sale of Loryser's other
assets including plant and equipment. The proceeds from all of
these sales and the sales of the shares by the Trust will be used
to pay liabilities in Uruguay in connection with the aforementioned
Creditors Agreement.
Financial and Corporate
-- The 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 May 31, 2021, the Company had a cash balance of $6,958,000
(May 31, 2020: $782,000). As at the date of this announcement the
Company had a cash balance of $6,270,000 which includes the
proceeds from the private placement and from the exercise of stock
options, both detailed below.
-- On July 17, 2020 Brad George was appointed Chief Executive
Officer and Thomas Masney was appointed as a non-executive
director, replacing Ignacio Salazar and HD Lee respectively.
-- On August 14, 2020 8,370,000 warrants expired unexercised.
-- On October 30, 2020, 2,876,670 stock options were exercised
by a number of employees and former employees resulting in proceeds
of CDN$455,000 for the Company.
-- On December 7, 2020, the Company completed a private
placement financing consisting of the sale of 23,529,412 units (the
"Units") at 17 pence per Unit for aggregate gross proceeds of GBP4
million ($5,372,000). Each Unit consisted of one (1) common share
in the capital stock of the Company ("Common Share") and one-half
(1/2) of one Common Share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant entitles the holder thereof to acquire an
additional Common Share at a price of 25.5 pence for a period of 12
months from the date of issuance.
-- On December 10, 2020, the Company granted an aggregate of
5,600,000 stock options of which 4,300,000 were granted to certain
directors and officers of the Company, at an exercise price of
CAD$0.325 with an expiration date of December 10, 2030. These
options vested 50% immediately and the 50% on December 10,
2021.
-- On January 12, 2021, the Company appointed Nicholas (Nick)
von Schirnding to the Company's Board as an Independent
Non-Executive Director. The Company also appointed Louis Castro,
then Non-Executive Chairman
of the Company, to the role of Executive Chairman.
Outlook and Strategy
During the period, the Company continued its focus on developing
the potential at Anza and continuing the orderly closure of its
historical operations in Uruguay in accordance with the court
agreed settlement process. Work on both facets of the corporate
strategy is progressing well and the capital raising in November
2020 has provided sufficient balance sheet strength to continue
progress.
The Company has also been examining new business opportunities
in South America and, on July 7(th) , 2021, it announced that it
had entered into a non-binding Letter of Intent in order to
establish a joint venture on a tin project in Rhondonia state in
Brazil.
The Company will continue to build its project portfolio with
other high quality assets, subject to current travel restrictions
caused by Covid.
Brad George, CEO of Orosur said:
"Operationally and financially it has been a good year, albeit a
somewhat challenging one in light of the Covid-19 pandemic that has
impacted every facet of our business. Uruguay continues to be wound
down in an orderly fashion as per our plans and is near the end;
Colombia has been a major success story with tremendous results
from our drilling and sampling programs, all undertaken while the
pandemic raged around us; and our balance sheet was brought back to
life with a well-supported capital raising. With work accelerating
at Anza and with potential new projects coming on line, this coming
year looks to be even better"
Orosur Mining Inc.
Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
---------------------------------------------------- ---------- --------------
As at As at
May 31, May 31,
2021 2020
---------------------------------------------------- ---------- --------------
(Revised Note
1)
ASSETS
Current assets
Cash and cash equivalents $ 6,958 $ 782
Restricted cash 1,367 -
Accounts receivable and other assets 201 130
Assets held for sale in Uruguay 2,314 3,081
---------------------------------------------------- ---------- --------------
Total current assets 10,840 3,993
Non-current assets
Property, plant and equipment 124 72
Exploration and evaluation assets Colombia 5,148 6,479
---------------------------------------------------- ---------- --------------
Total assets $ 16,112 $ 10,544
---------------------------------------------------- ---------- --------------
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 486 $ 313
Liabilities of Chile discontinued operation 2,047 2,010
Warrant liability 1,734 -
Liabilities held for sale in Uruguay 16,830 17,995
---------------------------------------------------- ---------- --------------
Total current liabilities 21,097 20,318
---------------------------------------------------- ---------- --------------
Deficit
Share capital 69,333 65,670
Shares held by Trust (165) (380)
Contributed surplus 8,591 5,987
Currency translation reserve (1,826) (2,016)
Deficit (80,918) (79,035)
---------------------------------------------------- ---------- --------------
Total deficit (4,985) (9,774)
---------------------------------------------------- ---------- --------------
Total liabilities and deficit $ 16,112 $ 10,544
---------------------------------------------------- ---------- --------------
Orosur Mining Inc.
Consolidated Statements of Loss and Comprehensive
Loss
(Expressed in thousands of United States dollars)
-------------------------------------------------------- ----------------------- ------------
Year Ended Year Ended
May 31, 2021 May 31,
2020
-------------------------------------------------------- ----------------------- ------------
(Revised
Note 1)
Operating expenses
Corporate and administrative expenses $(1,206) $(1,453)
Exploration expenses (29) (44)
Share-based payments (1,048) (40)
Other income 21 6
Net finance cost (187) (6)
Gain on fair value of warrants 627 11
Net foreign exchange gain (loss) 110 (1)
-------------------------------------------------------- ----------------------- ------------
Net (loss) for the year for continued operations $(1,712) $(1,527)
Other comprehensive income (loss):
Cumulative translation adjustment $190 $(510)
-------------------------------------------------------- ----------------------- ------------
Total comprehensive (loss) for the year from continued
operations (1,522) (2,037)
(Loss) income from discontinued operations (171) 1,891
-------------------------------------------------------- ----------------------- ------------
Total comprehensive (loss) for the year (1,693) (146)
Basic and diluted net (loss) per share for continued
operations $(0.01) $(0.01)
Basic and diluted net (loss) income per share
for discontinued operations (0.00) $ 0.01
-------------------------------------------------------- ----------------------- ------------
Weighted average number of common shares outstanding 173,825 153,380
-------------------------------------------------------- ----------------------- ------------
Orosur Mining Inc.
Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
---------------------------------------------------- ----------- --------------
Year Ended Year Ended
May 31, May 31,
2021 2020
(Revised Note
1)
Operating activities
Net (loss) income for the year $ (1,883) $ 364
Adjustments for:
Depreciation / Write downs 356 66
Share-based payments 1,048 40
Labor provision adjustments (1,472) -
Obsolescence provision 443 (83)
Fair value of warrants (627) (11)
Accretion of asset retirement obligation 4 (130)
Gain on sale of property, plant and equipment (379) (830)
Foreign exchange and other 440 (1,032)
Changes in non-cash working capital items:
Accounts receivable and other assets 73 464
Inventories 247 915
Accounts payable and accrued liabilities 481 (1,748)
---------------------------------------------------- ----------- --------------
Net cash used in operating activities (1,270) (1,985)
Investing activities
Increase in the restricted cash (1,367) -
Proceeds received for sale of property, plant
and equipment 758 1,120
Purchase of property, plant and equipment (59) -
Environmental tasks (708) (215)
Proceeds received from exploration and option
agreement 4,660 2,019
Exploration and evaluation expenditures (3,087) (554)
---------------------------------------------------- ----------- --------------
Net cash provided by investing activities 196 2,370
Financing activities
Issue of common shares 5,154 -
Proceeds from the sale of treasury shares 1,879 -
Proceeds from exercise of options 455 -
Proceeds from exercise of warrants 308 -
---------------------------------------------------- ----------- --------------
Net cash provided by financing activities 7,796 -
---------------------------------------------------- ----------- --------------
Net Change in cash and cash equivalents 6,722 385
Net change in cash classified within assets
held for sale (546) (129)
Cash and cash equivalents, beginning of year 782 526
---------------------------------------------------- ----------- --------------
Cash and cash equivalents, end of year $ 6,958 $ 782
---------------------------------------------------- ----------- --------------
Operating activities
- continued operations (1,766) (1,209)
- discontinued operations 496 (776)
Investing activities
- continued operations 146 1,465
- discontinued operations 50 905
Financing activities
- continued operations 7,796 -
Note 1. Revision of 2020 reported financial statements
Subsequent to the issuance of the previously reported financial
statements for the year ended May 31, 2020, a review of foreign
exchange movements in its Uruguayan discontinued operations have
caused the Company to revise the prior period comparative figures,
increasing creditors in its discontinued operation by $606,000
which results in a change in the comprehensive profit (loss) from a
profit of $460,000 to a loss of $(146,000).
Whilst the comparative figures have been revised, the Company
has concluded that the adjustment is not material to any of the
previously issued consolidated financial statements. In reaching
this conclusion the Company has had regards to the following: the
adjustment is non-cash in nature; it is an adjustment solely to the
discontinued activities of the Company and increases the
liabilities of the discontinued activities from $17,389 to $17,995
(an immaterial increase of 3%). Furthermore, there is no impact on
the Company's assessment of going concern nor on the liquidity of
the Company.
F or further information, 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 / Caroline Rowe
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
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a South American
focused minerals exploration and development company. The Company
operates in Colombia and 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 the funding 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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