OMI) (AIM: OMI) announces its unaudited results for the quarter ended
Orosur Mining Inc.
Results for First Quarter ended August 31, 2022
London, October 31, 2022. Orosur Mining Inc. ("Orosur" or "the Company") (TSXV:
OMI) (AIM: OMI) announces its unaudited results for the quarter ended August 31,
2022. All dollar figures are stated in US$ un less otherwise noted. The unaudited
condensed financial statements of the Company for the quarter ended August 31,
2022 and the related management's discussion and analysis ("MD&A") 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/5732E_1-2022-10-30.pdf
A link to the PDF version of the MD&A is available here:
http://www.rns-pdf.londonstockexchange.com/rns/5732E_2-2022-10-30.pdf
Highlights
Colombia
• On June 27, 2022, assay results from five additional holes in APTA were
announced. Reasonable grades of gold were intercepted in two of the holes and
the other holes showed lower levels of gold but high -grade copper and zinc
evident at depth. As planned, drilling focus was then shifted to Pepas and
Pupino.
• On September 6, 2022, subsequent to the quarter end, the Company
announced assay results from the Pepas prospect to the north of Anza, including
assay results from PEP001 which returned a substantial, high-grade intersection
of 150.9m @ 3.00g/t Au (from surface). Also announced on that day, was that
Monte Aguila had informed the Company that it had met its expenditure of
US$4m for the year.
• On September 9, 2022, the Company that announced that its JV partner, Monte
Águila, provided the Company with a Phase 1 Earn-In Notice, having completed
all of the Phase 1 obligations, including investing US$10 million in the Anza
Project. The Company and Monte Aguila will begin the process of forming a new
mining company ("Mining Company") that will hold title to the Anza Proj ect's
concessions and applications. The Company was also notified by Monte Aguila
that in accordance with the Exploration Agreement, it will enter Phase 2
following negotiation and execution of a joint venture agreement to govern the
operations of the Mining Company. Once the Mining Company is formed, which
is expected to take several months, Orour will initially have 49% ownership and
Monte Aguila, 51% ownership in the Mining Company, which will be managed
by Monte Aguila.
• On October 21,2022, the Co mpany announced assay results from four
additional diamond drill holes at Pepas and Pupino. Both the Pepas and Pupino
prospects are located in the northern region of the Anzá Prospect, roughly 12km
and 8km respectively north northeast from the central APTA prospect that had
seen most drilling at Anzá up until early 2022. At PEPAS, holes PEP005 and
PEP007 were drilled from the same pad as PEP001 but in different directions.
Both holes returned substantial gold intersections, with the best at PEP007
being 80.55m @ 3.05g/t Au from surface (including 41.75m @ 5.24g/t). Two
additional holes are currently underway from new pads in an attempt to better
define the geometry of the mineralised body at Pepas.
Argentina
• On June 28, 2022, the Company announced further positive results from the in-
fill program, confirming previous work and results. High levels of gold soil
anomalies, over 1 km, including 150 ppb, plus pathfinder elements over a wider
area are suggestive of a major epithermal system. This work has defined a high
priority target to be followed up in the coming two months.
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 which is nearing completion.
• During the course of the 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.
• Good progress is being mad e 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, 2022, the Company had a cash balance of US$ 3,634k (May 31, 2022:
US$ 4,221k). As at the date of this announcement the Company had a cash balance
of US$ 3,033k.
Outlook and Strategy
During the period, the Company continued its focus on developing the potential at
Anza in Colombia as well as progressing its Ariquemes tin project in Brazil, and its
El Pantano gold/silver project in Argentina. The combination of the three projects
have transformed the Company into a well-balanced minerals exploration company.
The Company will continue to build its project portfolio with other high -quality
assets, whilst concluding the orderly closure of its historical operations in Uruguay.
Consolidated Statements of Financial Position
(Expressed in thousands of United States
dollars)
As at
As at
August 31,
2022
May 31,
2022
ASSETS
Current assets
Cash and cash equivalents
$ 3,634
$ 4,221
Restricted cash 203 353
Accounts receivable and other assets 154 186
Assets held for sale in Uruguay 1,089 1,160
Total current assets 5,080 5,920
Non-current assets
Property, plant and equipment
100
113
Exploration and evaluation assets Colombia 4,985 5,441
Total assets $ 10,165 $ 11,474
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities
$ 312
$ 389
Liabilities of Chile discontinued operation 2,075 2,058
Warrant liability 92 168
Liabilities held for sale in Uruguay 12,823 13,134
Total current liabilities 15,302 15,749
Deficit
Share capital
69,339
69,333
Contributed surplus 10,540 10,540
Currency translation reserve (2,630) (2,125)
Deficit (82,386) (82,029)
Total deficit (5,137) (4,275)
Total liabilities and deficit $ 10,165 $ 11,474
Consolidated Statements of Loss and
Comprehensive Loss (Expressed in thousands of
United States dollars)
Three Months
Ended
Three Months
Ended
August 31,
2022
August 31,
2021
Operating expenses
Corporate and administrative expenses
$ (407)
$ (320)
Exploration expenses (62) -
Share-based compensation - (168)
Other income 6 1
Net finance cost (2) (1)
Gain on fair value of warrants 76 372
Foreign exchange (loss) gain net (39) (69)
Net (loss) for the year for continued operations $ (428) $ (185)
Other comprehensive (loss) income:
Cumulative translation adjustment
$ (505)
$ (201)
Total comprehensive (loss) for the
year from continued operations
(933)
(386)
Income (loss) from discontinued operations 71 (1,538)
Total comprehensive (loss) for the year (862) (1,924)
Basic and diluted net (loss) per share for continued operations $ (0.00) $ (0.00)
Basic and diluted net income (loss) per share for
discontinued operations
$ 0.00
$ (0.01)
Weighted average number of common shares
outstanding 188,520 188,420
Consolidated Statements of Cash Flows
(Expressed in thousands of United States
dollars)
Three Months
Ended
Three Months
Ended
August 31,
2022
August 31,
2021
Operating activities
Net loss for the year for continued and discontinued operations $ (357) $ (1,723)
Adjustments for:
Share-based payments - 168
Fair value of warrants (76) (372)
Gain on sale of property, plant and equipment (4) (111)
Foreign exchange and other (266) (133)
Changes in non-cash working capital items:
Accounts receivable and other assets (9) (53)
Inventories 17 350
Accounts payable and accrued liabilities (81) 640
Net cash used in operating activities (776) (1,234)
Investing activities
Increase (decrease) in the restricted cash 150 (719)
Proceeds received for sale of property, plant and equipment 4 111
Proceeds received from exploration and option agreement 37 782
Exploration and evaluation expenditures (61) (910)
Net cash provided by investing activities 130 (736)
Financing activities
Proceeds from the sale of treasury shares - 719
Net cash provided by financing activities - 719
Net Change in cash and cash equivalents (646) (1,251)
Net change in cash classified within assets held for sale 59 558)
Cash and cash equivalents, beginning of year 4,221 6,958
Cash and cash equivalents, end of year $ 3,634 $ 6,958
Operating activities
- continued operations (713) (565)
- discontinued operations (63) (669)
Investing activities
- continued operations 126 (847)
- discontinued operations 4 111
Financing activities
- continued operations - 719
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.
For further information, please contact:
Orosur Mining Inc
Louis Castro, Executive Chairman,
Brad George, CEO
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Broker
Jeff Keating / Caroline Rowe
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
About Orosur Mining Inc.
Orosur Mining Inc. (TSXV: 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 and Argentina and has discontinued
operations in 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 limite d 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 Minera Monte Águila of those plans, Minera Monte
Águila´s decision to continue with the Exploration and Option agreement, the
ability for Loryser to continue and finalize with the remediation in Urugua y, 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 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 co uld 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 MD&A for the year ended May 31, 2022. 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.