TIDMOMI
RNS Number : 2366P
Orosur Mining Inc
15 October 2021
Orosur Mining Inc .
First Quarter 2022 Results and Transfer of TSX listing to the
TSX Venture Exchange
London, October 15, 2021 . Orosur Mining Inc. ("Orosur" or "the
Company") (TSX: OMI) (AIM: OMI) announces its unaudited results for
the quarter ended August 31, 2021. All dollar figures are stated in
US$ unless otherwise noted. The unaudited condensed financial
statements of the Company for the quarter ended August 31, 2021 and
the related management's discussion and analysis ("MDA") have been
filed and are available for review on the SEDAR website at
www.sedar.com and 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/2366P_1-2021-10-15.pdf
A link to the PDF version of the MDA is available here:
http://www.rns-pdf.londonstockexchange.com/rns/2366P_2-2021-10-15.pdf
Highlights
Colombia
-- On July 6, 2021, the Company announced the assay results from
nine additional diamond drillholes including multiple high-grade
gold intersections with associated silver and zinc - including
59.55m @9.16g/t Au and 61.75m @2.05g/t Au. For more detail, please
see the Company's news release dated July 6, 2021.
-- Also as set out in the above news release, work commenced on
regional mapping and sampling across the wider lease holding in
Colombia. A large program of BLEG sampling was commenced, which
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 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.
-- Post period end, as announced on September 7, 2021, the
Company was informed by its Colombian Joint Venture ("JV") partner,
Minera Monte Águila SAS ("Monte Águila") that it had elected to
exercise its right to assume operatorship of the Anzá Project in
Colombia. Monte Águila is a 50/50 JV between Newmont Corporation
("Newmont") (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited
("Agnico") (TSX:AEM), and is the vehicle by which these two
companies jointly exercise their rights and obligations with
respect to the Exploration Agreement with Venture Option
("Exploration Agreement") over the Anzá Project.
-- The Anzá Project has now moved into its fourth year of Phase
1 during which time a further US$4.0 million is required to be
spent pursuant to the Exploration Agreement.
-- While Monte Águila manages the Anzá Project, Minera Anzá will
continue to be the 100% owner of the licences, until such time as
Monte Águila has met its financial obligations with respect to the
Exploration Agreement and elected to move to Phase 2 by September
2022.
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
is also continuing with the reclamation and remediation of the
tailings dam.
-- As part of the Creditors Agreement, Orosur issued 10,000,000
Orosur common shares, in December 2019, to a trust for the benefit
of Loryser's creditors. On September 10, 2021 the Company announced
that it had been informed by the San Gregorio Trust that it had
successfully sold its entire shareholding of 10 million common
shares in the Company, which amount will be applied to meet
Loryser's obligations under the Creditors Agreement.
-- 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.
On August 31, 2021, the Company had a cash balance of US$6,265k
(May 31, 2021US$6,958k). As at the date of this announcement the
Company had a cash balance of US$5,685k.
Strategy and outlook
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
approved Creditors Agreement.
The Company has also been examining new business opportunities
in South America, and on July 7th, 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
parties are progressing matters.
The Company intends to continue building its project portfolio
with other high-quality assets, subject to current travel
restrictions caused by Covid-19.
Transfer from the TSX to the TSX Venture Exchange
The Company has received approval to transfer its listing from
the TSX to the TSX Venture Exchange. The Company believes that the
transfer will provide it with operational efficiencies, with lower
costs and with a reporting regime which is closer to that of the
AIM market, whilst allowing shareholders to have continued trading
liquidity in Canada.
The Company's existing listing on AIM, where approximately 90%
of the Company's liquidity resides, will continue without
interruption as normal during the transition and beyond.
The Company expects a seamless transition, delisting from TSX at
market close on Friday 29(th) October 2021 to listing on the TSX
Venture Exchange at market opening on Monday 1(st) November 2021.
The Company's Common Shares will continue to trade under the symbol
"OMI". Shareholder approval for the delisting from the TSX is not
required since the Company will have its Common Shares listed on
the TSXV.
For 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 & Joint Broker
Jeff Keating / Caroline Rowe
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
AndyThacker/JamesPope
Tel: +44 (0)20 3657 0050
Flagstaff Communications and Investor Communications
TimThompson
MarkEdwards
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.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a minerals explorer
and developer focused on identifying and advancing projects in
South America. The Company currently 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 Monte Águila of
those plans, 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, 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 MDA
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.
Orosur Mining Inc.
Condensed Interim Consolidated Statements of
Financial Position (Expressed in thousands of
United States dollars)
Unaudited
As at As at
August 31, May 31,
2021 2021
ASSETS
Current assets
Cash and cash equivalents $ 6,265 $ 6,958
Restricted cash 2,087 1,367
Accounts receivable and other assets 192 201
Assets held for sale in Uruguay 1,396 2,314
------------------------------------------------ ---------------------- -------------------
Total current assets 9,940 10,840
Non-current assets
Property, plant and equipment 119 124
Exploration and evaluation assets Colombia 5,203 5,148
------------------------------------------------ ---------------------- -------------------
Total assets $ 15,262 $ 16,112
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 401 $ 486
Liabilities of Chile discontinued operation 2,049 2,047
Warrant liability 1,362 1,734
Liabilities held for sale in Uruguay 17,472 16,830
------------------------------------------------ ---------------------- -------------------
Total current liabilities 21,284 21,097
------------------------------------------------ ---------------------- -------------------
Deficit
Share capital 69,333 69,333
Shares held by Trust (72) (165)
Contributed surplus 9,385 8,591
Currency translation reserve (2,027) (1,826)
Deficit (82,641) (80,918)
------------------------------------------------ ---------------------- -------------------
Total deficit (6,022) (4,985)
------------------------------------------------ ---------------------- -------------------
Total liabilities and deficit $ 15,262 $ 16,112
------------------------------------------------ ---------------------- -------------------
Condensed Interim Consolidated Statements of Loss
and Comprehensive Loss (Expressed in thousands of
United States dollars)
Unaudited
Three Months Three Months
Ended August Ended August
31, 31,
2021 2020
Operating expenses
Corporate and administrative expenses $ (320) $ (249)
Exploration expenses - (21)
Share-based payments (168) (4)
Other income 1 8
Net finance cost (1) (1)
Gain on fair value of warrants 372 -
Net foreign exchange gain (loss) (69) (14)
--------------------------------------------------------- ---------------------- ------------------------
Net (loss) for the period for continued operations $ (185) $ (281)
Other comprehensive income (loss):
Cumulative translation adjustment $ (201) $ (34)
--------------------------------------------------------- ---------------------- ------ ----------------
Total comprehensive (loss) for the period from continued
operations (386) (315)
(Loss) income from discontinued operations (1,538) (1,075)
--------------------------------------------------------- ---------------------- ------------------------
Total comprehensive (loss) for the period (1,924) (1,390)
Basic and diluted net (loss) per share for continued
operations $ (0.00) $ (0.00)
Basic and diluted net (loss) income per share for
discontinued operations $ (0.01) $ (0.01)
--------------------------------------------------------- ---------------------- ------------------------
Weighted average number of common shares outstanding 188,420 160,278
--------------------------------------------------------- ---------------------- ------------------------
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,
2021 2020
Operating activities
Net (loss) for the period for continued and discontinued
operations $ (1,723) $ (1,356)
Adjustments for:
Share-based payments 168 4
Fair value of warrants (372) -
Gain on sale of property, plant and equipment (111) (140)
Foreign exchange and other (133) 559
Changes in non-cash working capital items:
Accounts receivable and other assets (53) (98)
Inventories 350 145
Accounts payable and accrued liabilities 640 316
--------------------------------------------------------- ---------------------------- -------------
Net cash used in operating activities (1,234) (570)
Investing activities
Increase in the restricted cash (719) -
Proceeds received for sale of property, plant
and equipment 111 140
Proceeds received from exploration and option 782 -
agreement
Exploration and evaluation expenditures (910) (150)
--------------------------------------------------------- ---------------------------- -------------
Net cash used in investing activities (736) (10)
Financing activities
Proceeds from the sale of treasury shares 719 -
--------------------------------------------------------- ---------------------------- -------------
Net cash provided by financing activities 719 -
--------------------------------------------------------- ---------------------------- -------------
Net Change in cash and cash equivalents (1,251) (580)
Net change in cash classified within assets held
for sale 558 154
Cash and cash equivalents, beginning of period 6,958 782
--------------------------------------------------------- ---------------------------- -------------
Cash and cash equivalents, end of period $ 6,265 $ 356
Operating activities
- continued operations (565) (276)
- discontinued operations (669) (294)
Investing activities
- continued operations (847) (150)
- discontinued operations 111 140
Financing activities
- continued operations 719 -
--------------------------------------------------------- ---------------------------- -------------
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END
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October 15, 2021 05:04 ET (09:04 GMT)
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