OMI) the minerals developer and explorer with operations in Colombia, Argentina, Nigeria and Brazil announces its unaudited results for the quarter ended
CORPORATE
Orosur Mining Inc.
Results for First Quarter ended August 31, 2023
London, October 30th, 2023. 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 August 31, 202 3. All dollar figures are stated in
US$ unless ot herwise noted. The unaudited condensed interim financial statements of the Company
for the quarter ended August 31, 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: [RNS to insert link to FS]
A link to the PDF version of the MD&A is available here: [RNS to insert link to MD&A]
HIGHLIGHTS
• In Colombia, negotiations continued with Monte Aguila on the shareholders agreement which will
govern the new mining company to be owned 51% by Monte Agulia and 49% by Orosur. These
discussions have continued post the period end. Whilst exploration activities have been wound
back, some mapping and surface sampling has been carried out; 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 Project.
• In Brazil, on July 5, 2023, the Company 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 and assays are expected imminently.
• In Argentina, on May 4, 2023 the Company announced that mapping and ground magnetic surveys
at El Pantano had identified a major NW-SE structural corridor over 20km long and 5km wide, with
large areas of silicification, alteration and geochemical anoma lism over extensive areas. Mapping
to the north of the main structure has so far identified over 70 quartz veins over an area in excess
of 20km2, with textures indicative of cooler temperatures, fully consistent with the model of a very
large low -sulphidation epithermal system. Mapping of this vein field continued until the
commencement of the winter recess in early June. Soil sampling assay results were received and
continued to add weight to the geological model with extended anomalism in gold and key
pathfinder elements. Sampling 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
the end of the year.
CORPORATE
• In Uruguay the Company’s wholly owned subsidiary, Loryser, continue d 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 paying agent.
• Post the period end, on October 16,2023, the Company announced that it had signed a joint venture
agreement over four licences in the Nigerian lithium belt. The Company, via a new 100%
owned UK subsidiary, Lithium West Limited ("Lithium West"), may earn up to 70% equity in the
project in two phases: Phase 1 - Lithium West can earn 51% equity in the 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 project, up to a total of 70%, by spending an additional US$2m over a maximum of
two years. Other prospective areas are currently being examined and it is possible that additional
licences may be added to the project in the near term.
Financial and Corporate
• 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 sale (at the lower of book value o r fair
value) and Profit and Loss from discontinued operations. This accounting treatment has been
applied to the activities in Uruguay and Chile.
• On August 31, 2023, the Company had a cash balance of $3,186,000 (May 31, 2023: $3,748,000).
As at the date of this announcement the Company had a cash balance of $2,350,000.
Louis Castro, Executive Chairman of Orosur said:
“This has been a very busy progressive first quarter for the Company, with positive advances across all
our portfolio. We are particularly delighted, post period, to add a high quality Lithium asset in Nigeria
with an in situ team, which will allow us to focus on both our South American activities and on our new
asset. “
CORPORATE
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
Unaudited
As at
August 31,
2023
$
As at
May 31,
2023
$
ASSETS
Current assets
Cash 3,186 3,748
Restricted cash 12 12
Accounts receivable and other assets 208 219
Assets held for sale in Uruguay 958 898
Total current assets 4,364 4,968
Non-current assets
Property, plant and equipment 137 123
Exploration and evaluation assets 3,787 3,334
Total assets 8,288 8,425
LIABILITIES AND DEFICIT
Current liabilities
Accounts payable and accrued liabilities 269 336
Liability of Chile discontinued operation 2,248 2,204
Liabilities held for sale in Uruguay 12,719 12,546
Total current liabilities 15,236 15,086
Deficit
Share capital 69,341 69,341
Share-based payments reserve 10,539 10,539
Currency translation reserve (2,398) (2,725)
Deficit (84,430) (83,816)
Total deficit (6,948) (6,661)
Total liabilities and deficit 8,288 8,425
CORPORATE
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in thousands of United States dollars)
(Except common shares and per share amounts)
Unaudited
Three Months
Ended
August 31,
2023
$
Three Months
Ended
August 31,
2022
$
Corporate and administrative expenses (398) (407)
Exploration expenses (27) (62)
Other income 6 6
Net finance cost (4) (2)
Gain on fair value of warrants - 76
Foreign exchange (loss) gain net 59 (39)
Net (loss) for the period for continuing operations (364) (428)
(Loss) income from discontinued operations (250) 71
Net (loss) for the period (614) (357)
Item which may be subsequently reclassified to profit or loss:
Cumulative translation adjustment 327 (505)
Total comprehensive (loss) for the period (287) (862)
Basic and diluted net (loss) income per share for
- continuing operations (0.00) (0.00)
- discontinued operations (0.00) 0.00
Weighted average number of common shares outstanding 188,560 188,432
CORPORATE
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
Unaudited Three Months
Ended
August 31,
2023
$
Three Months
Ended
August 31,
2022
$
Operating activities
Net loss for the period for continued and discontinued
operations (614) (357)
Adjustments for
Depreciation / Write downs 2 -
Gain on fair value of warrants - (76)
Gain on sale of property, plant and equipment - (4)
Foreign exchange and other 109 (266)
Changes in non-cash working capital items:
Accounts receivable and other assets 14 (9)
Inventories - 17
Accounts payable and accrued liabilities 70 (81)
Net cash used in operating activities (419) (776)
Investing activities
Decrease in restricted cash - 150
Proceeds received for sale of property, plant and equipment - 4
Purchase of property, plant and equipment (9) -
Proceeds received from exploration and option agreement - 37
Exploration and evaluation expenditures (171) (61)
Net cash (used in) provided by investing activities (180) 130
Net change in cash (599) (646)
Net change in cash classified within assets held for sale 37 59
Cash, beginning of period 3,748 4,221
Cash end of period 3,186 3,634
Operating activities
- continuing operations (382) (713)
- discontinued operations (37) (63)
Investing activities
- continuing operations (180) 126
- discontinued operations - 4
CORPORATE
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 / 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 insid e
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. (TSXV: OMI; AIM: OMI) is a minerals explorer and developer currently operat ing 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 States Private Securities Litig ation 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 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 t o 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
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 MD&A and the Annual Information Form. The Compan y 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.
CORPORATE