First Quarter 2022 Results and Transfer of TSX listing to the TSX Venture Exchange
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 se cure 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 th e 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 mat ters.
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 1 st November 2021. The
Company's Common Shares will continue to trade under the symbol "OMI". Shareholder app roval 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
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
Tel: +44 (0)207 129 1474
The information contained within this announcement is deemed by the Company to c onstitute 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 Liti gation 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 an d 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 suc h 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 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
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 -