TIDMOMI
RNS Number : 5933X
Orosur Mining Inc
27 April 2023
Orosur Mining Inc
Third Quarter Results for 2022/23
London , April 27th, 2022. Orosur Mining Inc. ("Orosur" or "the
Company") (TSXV/AIM: OMI), a South American-focused minerals
explorer and developer, is pleased to announce the results for the
third quarter ended February 28th, 2023 ("Q3 23" or the "Quarter").
All dollar figures are stated in US$ unless otherwise noted. The
unaudited condensed interim financial statements of the Company for
the Quarter and the related management's discussion and analysis
have been filed and are available for review on the SEDAR website
at www.sedar.com. They are also available on the Company's website
at www.orosur.ca.
Highlights of the Third Quarter Results for 2022/23
Colombia
-- On December 2, 2022, the Company announced assay results from
another four holes at Pepas, holes PEP002,006,008 and 009. Holes
PEP002 and 006 did not yield significant results. Two new drill
pads were constructed to drill holes PEP008 and PEP009. Both holes
intersected mineralised structures, largely as expected, but with
lower levels of gold mineralisation than intersected in previous
drilling. Near term focus will now shift away from drilling to
field mapping, sampling and trenching activities will continue
across the Project to define further drilling targets, including
additional surface works specifically in the Pepas prospect
area.
-- On January 17, 2023, the Company announced that negotiations
to complete the new Mining Company Constituent Documents with
Minera Monte Aguila ("MMA") were progressing and that the US$2
million Phase 2 payment would be paid soon. The formation of the
new Mining Company, which will take several months, is underway.
Once formed, the Mining Company will be owned 49% by Orosur and 51%
by MMA who will also be the manager. MMA may earn an additional 14%
ownership in the Mining Company if it has spent US$20 million in
qualifying exploration expenditures on the Anzá Project ("Project")
on or prior to the fourth anniversary of the parties entering into
the Mining Company Constituent Documents. If the Phase 2 earn-in is
completed, MMA would own 65% of the Mining Company and the Company
would own the remaining 35%.
-- On March 2, 2023, post the Quarter end, the Company announced
that it had received the Phase 2 option payment of US$2 million
that was due as part of the process of MMA moving from Phase 1 to
Phase 2 of the Project. Following completion of drilling,
exploration work at Anzá has been wound back to allow for the
required corporate restructuring of the joint venture to be
completed, and to advance a variety of licence processes such as
integration of smaller licences and conversion of applications to
granted status.
Argentina
-- On March 2, 2023, the Company announced that results to date
continue to be extremely encouraging, with the latest round of
mapping and sampling suggestive that El Pantano has potential to
host a major, previously unexplored low-sulphidation epithermal
system. In the low-sulphidation model, fluid boiling is the key
gold depositional mechanism, such that gold mineralisation is
constrained to a distinct vertical zone, and there may be limited
or no gold anomalism at surface. Instead, pathfinder elements are a
more important guide to mineralisation, especially mercury (Hg) and
arsenic (As). Recent work is expanding the picture of very large
zones of Hg and As anomalism along more than 8km strike of a major
NW trending structure.
-- Geological mapping, geochemical sampling and ground magnetic
surveys are continuing. It is also planned that other geophysical
methods such as Induced Polarization (IP) may be employed.
Environmental permitting work is also underway that will allow
drilling to be undertaken later in the year or early next year.
Brazil
-- On March 2, 2023, the Company announced that its large-scale
regional sampling program which had been underway for the last
several months, taking stream and drainage sediment samples over
much of the Ariquemes district, was now complete. Final results are
pending. Once received, it is anticipated that this regional
dataset will be able to provide vectors to potential mineralisation
that will then form the basis for more targeted exploration
programs in the near term.
Uruguay
-- In the previous accounting year, Loryser agreed and paid for
the settlements with all of its former employees, with the proceeds
received from the sale of certain of its assets. In the current
year to date it has finalised the reclamation and remediation works
on the tailings dam and has started a one-year post-closure control
phase which is progressing well.
-- During this Quarter, Loryser also succeeded in selling all of
its remaining assets included in the Creditors Agreement as set out
in that agreement and it will now, post Quarter end, be
distributing the proceeds, on a pro rata basis, to Loryser's trade
creditors in accordance with the Creditors' Agreement, via a court
approved paying agent.
Financial and Corporate
-- The unaudited 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 December 7, 2022, all of the outstanding 10,897,058
warrants expired and so the fully diluted share capital of the
Company as at the date of this MD&A is 199,750,299.
-- On February 28, 2023, the Company had a cash balance of
$4,151k (May 31, 2022 $4,221k). As at the date of this announcement
the Company had a cash balance of $3,857k.
Condensed Interim Consolidated Statements
of Financial Position (Expressed in thousands As at As at
of United States dollars)
Unaudited
February 28, May 31,
2023 2022
----------------------------------------------- ------------- ---------
ASSETS
Current assets
Cash and cash equivalents $ 4,151 $ 4,221
Restricted cash 10 353
Accounts receivable and other assets 155 186
Assets held for sale in Uruguay 2,407 1,160
----------------------------------------------- ------------- ---------
Total current assets 6,723 5,920
Non-current assets
Property, plant and equipment 90 113
Exploration and evaluation assets Colombia 2,630 5,441
----------------------------------------------- ------------- ---------
Total assets $ 9,443 $ 11,474
----------------------------------------------- ------------- ---------
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 316 $ 389
Liabilities of Chile discontinued operation 2,135 2,058
Warrant liability - 168
Liabilities held for sale in Uruguay 12,426 13,134
----------------------------------------------- ------------- ---------
Total current liabilities 14,877 15,749
----------------------------------------------- ------------- ---------
Deficit
Share capital 69,341 69,339
Contributed surplus 10,539 10,540
Currency translation reserve (3,060) (2,125)
Deficit (82,255) (82,029)
----------------------------------------------- ------------- ---------
Total deficit (5,434) (4,275)
----------------------------------------------- ------------- ---------
Total liabilities and deficit $ 9,443 $ 11,474
----------------------------------------------- ------------- ---------
--
Condensed Interim Consolidated Statements of Loss and
Comprehensive Loss (Expressed in thousands of United States
dollars)
Unaudited
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
February 28, February February February
28, 28, 28,
2023 2022 2023 2022
------------------------------------------------------------------------------------------ ----------------------- ------------------ ------------------
Operating expenses
Corporate and administrative expenses $
(473) $ (444) $ (1,316) $ (1326)
Exploration expenses (296) (26) (543) (36)
Share-based compensation - (41) - (274)
Other income 7 - 15 2
Net finance cost (2) (3) (7) (6)
Gain on fair value of warrants - 428 168 1,301
Foreign exchange (loss) gain net (54) (33) (106) (135)
------------------------------------------------------------------------------------------ ----------------------- ------------------ ------------------
Net (loss) for the period for continued
operations $ (818) $ (37) $ (1,789) $ (477)
Other comprehensive (loss) income:
Cumulative translation adjustment $ 1 $ (139) $ (934) $ (333)
------------------------------------------------------------------------------------------ ----------------------- ------------------ ------------------
Total comprehensive (loss) for
the period from continued operations (817) (176) (2,723) (810)
Income (loss) from discontinued
operations 513 (373) 1,563 (315)
--------------------------------------- ------------------------------------------------- ----------------------- ------------------ ------------------
Total comprehensive (loss) for
the period (304) (549) (1,160) (1,215)
Basic and diluted net (loss) per
share for continued operations $ (0.00) $ (0.00) $ (0.01) $ (0.00)
Basic and diluted net (loss) income
per share for discontinued operations $ 0.00 $ (0,00) $ 0.01 $ (0.00)
--------------------------------------- ------------------ ----------------------------- ------- -------------- ----- ----------- ------ ----------
Weighted average number of common
shares outstanding 188,560 188,420 188,544 188,420
--------------------------------------- ------------------ ----------------------------- ------- -------------- ----- ----------- ------ ----------
--
Consolidated Statements of Cash Flows (Expressed
in thousands of United States dollars)
Nine Months Nine Months
Ended Ended
February February 28
28 , ,
2022 2021
Operating activities
Net loss for the year for continued and discontinued
operations $ (226) $ (792)
Adjustments for:
Share-based payments - 274
Labour provision adjustments - (1,600)
Obsolescence provision (3,103) (1,100)
Fair value of warrants (168) (1,301)
Accretion of asset retirement obligation (817) -
Gain on sale of property, plant and equipment (1,396) (230)
Foreign exchange and other 68 56
Changes in non-cash working capital items:
Accounts receivable and other assets (106) 51
Inventories 3,415 1,504
Accounts payable and accrued liabilities 93 920
----------------------------------------------------- --------------------- -------------------
Net cash used in operating activities (2,240) (2,218)
Investing activities
Increase (decrease) in the restricted cash 343 (719)
Proceeds received for sale of property, plant
and equipment 945 746
Purchase of property, plant and equipment (1) -
Environmental rehabilitation provision - (1,100)
Proceeds received from exploration and option
agreement 2,085 1,266
Exploration and evaluation expenditures (191) (1,630)
----------------------------------------------------- --------------------- -------------------
Net cash provided by investing activities 3,181 (1,437)
Financing activities
Proceeds from the sale of treasury shares - 719
Proceeds from sale of options 2 -
Net cash provided by financing activities 2 719
----------------------------------------------------- --------------------- -------------------
Net Change in cash and cash equivalents 943 (2,936)
Net change in cash classified within assets
held for sale (1,013) 769
Cash and cash equivalents, beginning of year 4,221 6,958
----------------------------------------------------- --------------------- -------------------
Cash and cash equivalents, end of year $ 4,151 $ 4,791
----------------------------------------------------- --------------------- -------------------
Operating activities
- continued operations (2,308) (1,803)
- discontinued operations 68 (415)
Investing activities
- continued operations 2,236 (1,083)
- discontinued operations 945 (354)
Financing activities
- continued operations 2 719
----------------------------------------------------- --------------------- -------------------
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 / Kasia Brzozowska
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker
JamesPope
Tel: +44 (0)20 3657 0050
Flagstaff Strategic and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
Tel: +44 (0) 207 129 1474
orosur@flagstaffcomms.com
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. (TSX-V: OMI; AIM: OMI) is a minerals explorer
and developer focused on identifying and advancing projects in
South America. The Company currently operates in Colombia, Brazil,
Argentina and has discontinued operations in Uruguay.
About the Anzá Project
Anzá is a gold exploration project, comprising three exploration
licences, four exploration licence applications, and several small
exploitation permits, totalling 207.5km2 in the prolific Mid-Cauca
belt of Colombia.
The Anzá Project is currently wholly owned by Orosur 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.
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 Brazil and the
funding from Newmont/Agnico of those plans, Newmont/Agnico'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 Company's 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.
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END
QRTNKABQPBKDAQB
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April 27, 2023 02:00 ET (06:00 GMT)
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