Source - LSE Regulatory
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 29th October 2021 to listing on the TSX Venture Exchange at market opening on Monday 1st 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,

2021

May 31,

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

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 Ended August 31,

2021

Three Months Ended August 31,

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 agreement

782

-

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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