Orosur Mining Inc - Colombia
update
· LOI signed as first step in
Orosur reassuming 100% ownership of Anzá Project
· Targeting completion of
transaction by end of April 2024
· Planning for reassuming
ownership, operatorship and recommencement of drilling is underway
London, March 25, 2024.
Orosur Mining Inc.
("Orosur" or the
"Company") (TSXV/AIM:OMI), is pleased to announce
an update on the status of the Company's flagship Anzá Project
("Project") in Colombia.
The Project is the subject of an
Exploration Agreement with Venture Option ("Exploration Agreement")
with Colombian company Minera Monte Águila ("MMA"). MMA is itself a
50/50 joint venture between Newmont Corporation ("Newmont") and
Agnico Eagle Mines Limited ("Agnico") and is the Colombian vehicle
by which these two companies jointly exercise their rights and
obligations with respect to the Exploration Agreement over the
Project. MMA is the current operator of the Project.
The Exploration Agreement came into
effect in September 2018, with the first phase lasting four years
and being successfully completed in September 2022, such that MMA
earned a 51% interest in the Project. The Company and MMA then
began the process of moving toward Phase 2 of the Exploration
Agreement, which included a US$2 million option payment being made
to Orosur in early March 2023.
Subsequent to this, as announced on
May 4, 2023, the Company was informed that MMA was reviewing its
alternatives in respect of the Project and may not proceed to Phase
2 of the Exploration Agreement.
The Company is pleased to announce
that on March 22, 2023 it entered into a non-binding letter of
intent with MMA, that provides for a transaction pursuant to which
Orosur would repurchase, directly or indirectly, MMA's interest in
the Project, resulting in Orosur having a 100% ownership of the
Project ("Transaction"). The proposed consideration set out in the
letter of intent is a net smelter return royalty of 1.5% and cash
payments of up to US$15 million payable upon meeting certain agreed
production thresholds.
Subject to several conditions,
including but not limited to, the negotiation of definitive
documentation and the completion of due diligence, the Company
expects that the Transaction can be completed as early as the end
of April 2024.
Further details of the Transaction
remain commercially confidential and will be disclosed if and when
the Transaction is completed.
Preparations
Concurrently with negotiation of the
Transaction, the Company has begun the process of preparing to
reassume ownership and operatorship of the Project. This involves,
among other things, the recruitment of staff, liaising with the
local community, discussions with relevant contractors and
suppliers and the obtaining of various permits required for field
operations.
Should the Transaction be completed,
the Company hopes to be able to recommence drilling operations as
quickly as possible after reassuming operatorship.
Orosur CEO Brad George commented:
"After such a long period in
abeyance, we are excited at the prospect of reassuming ownership
and control of Anzá at this time of buoyant gold prices and
heightened market interest in precious metals. Most
importantly, the structure of the Transaction whereby all
consideration is deferred and contingent upon production allows us
to immediately direct our resources into the ground."
For further information, visit
www.orosur.ca, follow on X @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 / Caroline Rowe / 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 the Anzá Project
Anzá is a gold exploration project,
comprising three exploration licences, four exploration licence
applications, and a small exploitation permit, totalling in
aggregate 207.5km2 in the prolific Mid-Cauca belt of
Colombia.
Orosur's interest in the Anzá
Project is currently held via its subsidiary, Minera Anzá
S.A.
The project is located 50km west of
Medellin and is easily accessible by all-weather roads and boasts
excellent infrastructure including water, power, communications and
large exploration camp.
The Anzá Project is subject to an
Exploration Agreement with Venture Option dated September 7th,
2018, as announced on September 10th, 2018, between Orosur's 100%
subsidiary Minera Anzá S.A ("Minera Anzá") and Minera Monte
Águila SAS ("Monte Águila"), a 50/50 joint venture between
Newmont Corporation ("Newmont") and Agnico Eagle Mines Limited
("Agnico").
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 of those plans, completion of the Transaction to re-assume
100% of the Anza Project, 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 to, those as described in
Section "Risks Factors" of the Company's MD&A for the year
ended May 31, 2023. 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.