Company for the quarter ended Nove mber 30, 2023 and the related management's discussion and analysis
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Orosur Mining Inc.
Results for Second Quarter ended November 30, 2023
London, January 26th, 2024 . Orosur Mining Inc. ("Orosur" or the "Company") (TSX -V: OMI) (AIM: OMI)
the minerals developer and explorer with operations in Colombia, Argentina, Nigeria and Brazil announces
its unaudited results for the quarter ended November 30, 2023 ("Period" 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 ended Nove mber 30, 2023 and the related management's discussion and analysis
("MD&A") have been filed and are available for review on the SEDAR+ website at www.sedarplus.ca. The
financial statements and the MD&A are also available 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/9825A_2 -2024-1-25.pdf
A link to the PDF version of the MD&A is available here :
http://www.rns-pdf.londonstockexchange.com/rns/9825A_1-2024-1-25.pdf
HIGHLIGHTS
• In Colombia, whilst exploration activities have been wound back during the Period, some mapping
and surface sampling were undertaken largely to meet the regulatory work requirements of the
licences. In addition, a variety of licence processes, such as the integration of smaller licences have
been advanced; and Monte Aguila has continued to fund the promotion of relationships with local
community groups to strengthen the social licence to operate the Anza Project.
• In Brazil, the Company had previously announced that given the success of the regional stream
sediment program performed across the Company's Ariquemes district, it had decided to move to the
next phase which has targeted two prospects at Oriente Novo (in the east of the Company's
tenements) and at Paraiso in the west and to the north of the Bom Futuro tin mine. Sampling was
performed during July and August. Some issues were encountered with the accuracy and reliability of
the sampling and assaying of alluvial mineral isation. In an attempt to resolve these issues, some test
programs were undertaken during the quarter to better define these field practices so that subsequent
results would be reliable and reportable.
• In Argentina, s ampling and ground magnetic surveys recommenced after the winter recess in
September with the plan of completing coverage of the highest priority parts of the project before
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more detailed work could be commenced with a view to defining drill targets. This work is near
completion, and field teams will be returning to project early in 2024.
• In Uruguay, the Company's wholly owned subsidiary, Loryser, continues to focus its activities on the
final stages of the Creditors Agreement. In line with the Creditors Agreement, Loryser has sold all of
its assets. It has paid for the settlements with all of its former employees; it has finalised the
reclamation and remediation works on the tailings dam and has successfully concluded a one -year
post -closure control phase. Loryser is well advanced in distributing the proceeds to Loryser's trade
creditors in accordance with the Creditors' Agreement, via a Court approved settlement agent.
• On October 16 2023, the Company announced that it had signed a joint venture ("JV") agreement
over four licences in the Nigerian lithium belt (the "Lithium Project"). The Company, via its new 100%
owned UK subsidiary, Lithium West Limited ("Lithium West"), may earn up to 70% equity in the
Lithium Project in two phases: Phase 1 - Lithium West can earn 51% equity in the Lithium Project by
spending a total of US$3m over a maximum of three years. Phase 2 - Lithium West can earn an
additional 19% equity in the Lithium Project, up to a total of 70%, by spending an
additional US$2m over a maximum of two years. Field work began immediately after signing of the JV
with the first results released at the end of November 2023.
• In Nigeria, on November 28 2023, the Company announced positive results from an initial mapping
and sampling program that was carried out on the Lithium Project. Several hundred samples of
various outcrops were taken, with approximately 70 then being analysed by way of XRF and LIBS for
lithium content as well as a number of other pathfinder elements. Mapped pegmatite systems were
noted over substantial strike lengt hs of several km's and of varying widths from sub -metre, to over
30m in one massive example. Numerous pegmatite samples returned high levels of lithium, with
several over 2% Li2O. Also announced on that day was the acquisition of a further two new
exploration licences in Nigeria taking the total area of prospective land under title to 533km2,
representing one of the more dominant land positions in Nigeria.
• In Colombia, post the Period end on January 23, 2024, the Company announced that discussions with
Monte Aguila are currently focussed on exploring options whereby Orosur would acquire MMA's
interest in the Anza Project. Such an outcome, if achieved, would see the Company returning to
having a direct or indirect interest of 100% in the Anza Project. Negotiations are progressing towards
this objective; however, these are not final and as such there is no certainty that such a transaction
will be agreed, and if so, on what terms. The parties are examining a range of commercial and
structuring options, as well as undertaking prudent due diligence, and as such, finalisation of any
agreement may take some time.
Financial and Corporate
• On November 30, 2023, the Company had a cash balance of $2,104,000 (May 31, 2023 $3,748,000).
As at the date of this MD&A the Company had a cash balance of $1,722,000.
• Post the period end, at the Company AGM held on December 19, 2023 all resolutions put to
shareholders were duly passed.
• The unaudited condensed interim 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 sa le (at the lower of book value or fair value) and
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Profit and Loss from discontinuing operations. This accounting treatment has been applied to the
activities in Uruguay and Chile.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
Unaudited
As at
November
30, 2023
$
As at
May 31,
2023
$
ASSETS
Current assets
Cash 2,104 3,748
Restricted cash 12 12
Accounts receivable and other assets 464 219
Assets held for sale in Uruguay 934 898
Total current assets 3,514 4,968
Non-current assets
Property, plant and equipment 211 123
Exploration and evaluation assets 4,471 3,334
Total assets 8,196 8,425
LIABILITIES AND DEFICIT
Current liabilities
Accounts payable and accrued liabilities 247 336
Liability of Chile discontinued operation 2,291 2,204
Liabilities held for sale in Uruguay 12,512 12,546
Total current liabilities 15,050 15,086
Deficit
Share capital 69,341 69,341
Share-based payments reserve 10,539 10,539
Currency translation reserve (2,042) (2,725)
Deficit (84,686) (83,816)
Deficit attributable to owners of the parent (6,848) (6,661)
Non-controlling interest (6) -
Total deficit (6,854) (6,661)
Total liabilities and deficit 8,196 8,425
Condensed Interim Consolidated Statements of Loss and
Comprehensive Loss
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(Expressed in thousands of
United States dollars)
(Except common shares and
per share amounts)
Unaudited
Three
Months
Ended
November
30, 2023
$
Three Months
Ended
November 30,
2022
$
Six Months Ended
November 30,
2023
$
Six Months
Ended
November
30, 2022
$
Corporate and
administrative expenses (468) (436) (866) (843)
Exploration expenses (26) (185) (53) (247)
Other income 10 2 16 8
Net finance cost (5) (3) (9) (5)
Gain on fair value of
warrants - 92 - 168
Foreign exchange gain
(loss) net 97 (13) 156 (52)
Net (loss) for the period for
continuing operations (392) (543) (756) (971)
(Loss) income from
discontinued operations 136 979 (114) 1,050
Net (loss) income for the
period (256) 436 (870) 79
Item which may be
subsequently reclassified to
profit or loss:
Cumulative translation
adjustment 356 (430) 683 (935)
Total comprehensive (loss)
income for the period 100 6 (187) (856)
Basic and diluted net (loss)
income per share for
- continuing operations (0.00) (0.00) (0.00) (0.00)
- discontinued operations 0.00 0.01 (0.00) 0.01
Weighted average number
of common shares
outstanding 188,560,300 188,552,300 188,560,300 188,536,300
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
Unaudited Six Months
Ended
Six Months
Ended
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November
30, 2023
$
November
30, 2022
$
Operating activities
Net loss for the period for continued and discontinued
operations (870) 79
Adjustments for
Depreciation 6 -
Write down of inventories - (3,107)
Gain on fair value of warrants - (168)
Gain on sale of property, plant and equipment - (1,396)
Foreign exchange and other 366 (163)
Changes in non -cash working capital items:
Accounts receivable and other assets (271) (101)
Inventories - 3,419
Accounts payable and accrued liabilities (138) (37)
Net cash used in operating activities (907) (1,474)
Investing activities
Decrease in restricted cash - 270
Proceeds received for sale of property, plant and equipment - 545
Purchase of property, plant and equipment (85) (1)
Proceeds received from exploration and option agreement - 85
Exploration and evaluation expenditures (723) (138)
Net cash (used in) provided by investing activities (808) 761
Financing activities
Proceeds from exercise of options - 2
Net cash provided by financing activities - 2
Net change in cash (1,715) (711)
Net change in cash classified within assets held for sale 71 (604)
Cash, beginning of period 3,748 4,221
Cash end of period 2,104 2,906
Operating activities
- continuing operations (836) (1,533)
- discontinued operations (71) 59
Investing activities
- continuing operations (808) 216
- discontinued operations - 545
Financing activities
- continued operations - 2
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For further information, visit www.orosur.ca, follow on twitter @orosurm or please contact:
Orosur Mining Inc
Louis Castro, Chairman,
Brad George, CEO
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
[email protected] 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 (Withdrawa l) 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. (TSXV: OMI; AIM: OMI) is a minerals explorer and developer currently operating in
Colombia, Argentina, Nigeria and Brazil,
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 Stat es 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, Argentina,
Nigeria and Brazil and the funding in Colombia from Minera Monte Águila of those plans, Minera Monte
Águila´s decision to continue with the Exploration an d 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
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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 s ignificant 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 assuranc e 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 limi ted, 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 s uch forward -looking
statements, except to the extent required by applicable law