Orosur Mining Inc. – Termination of Anillo Option Agreement
Orosur Mining Inc. – Termination of Anillo Option Agreement
MONTEVIDEO, Uruguay, May 25, 2018. Orosur Mining Inc. (“Orosur” or “the Company” ) (TSX/AIM: OMI), a
South American-focused gold producer, developer and explorer announces its decision to terminate the option
agreement on its Anillo gold exploration project with Nacional del Cobre de Chile (“Codelco”), Chile’s national
mining company, located close to Antofagasta, in Region II, Chile and focus its resources on its core properties
in Colombia and Uruguay.
The Anillo project was originally optioned from Codelco in 2010, giving Orosur the right to acquire a 65%
interest in the project by spending US$4,000,000 over 4 years and completing a bankable feasibility study.
On June 6, 2015, the Company closed a further option agreement with Asset Chile Exploración Minera Fondo
de Inversión Privado (“AC”), whereby AC subscribed for an initial amount of Anillo SPA common shares equal
to 16% of the capital of Anillo SPA for gross proceeds of US$850,000. AC had a further option to elect to earn
up to 32.5% and up to 40%, by funding an additional US$1,250,000 and an additional US$1,375,000
respectively, which did not materialise.
Rather, following completion of the first phase of capital, Orosur and AC agreed to extend AC’s timing to enter
into phase 2 until December 2017 in exchange for AC paying care and maintenance costs of Anillo as well as
the Chilean office costs and also allowing Orosur to enter into discussions with other parties to potentially fund
the project.
In view of the lack of positive exploration results during phase 1, AC gave notice of their intention not to enter
into phase 2, following which and given the lack of alternative partners and the early stage and high-risk nature
of this project, the Company has decided not to proceed with the option agreement. The termination of the
option agreement is concluded by notifying Codelco and the n otice was given to Codelco on May 24, 2018.
There are no penalties involved with the termination of the Anillo option agreement. Orosur has an asset value
of approximately US$5.5 million recognized in its statements for the Anillo project which will be written down
in the next financial results.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a fully integrated gold producer, developer and explorer focused
on identifying and advancing gold projects in South America. The Company operates the only producing gold
mine in Uruguay (San Gregorio) and has assembled an exploration portfolio of high quality assets in Uruguay,
Chile and Colombia.
For further information, please contact:
Orosur Mining Inc
Ignacio Salazar, Chief Executive Officer
Ryan Cohen, VP Corporate Development
Tel: +1 (778) 373-0100
Cantor Fitzgerald Europe – Nomad & Joint Broker
David Porter/Keith Dowsing
Tel: +44 (0) 20 7894 7000
Numis Securities Limited – Joint Broker
John Prior / James Black / Paul Gillam
Tel: +44 (0) 20 7260 1000
2
The information contained within this announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service, this inside information is now considered to be in the public
domain. If you have any queries on this, then please contact Ryan Cohen, VP Corporate Development of the
Company (responsible for arranging release of this announcement on behalf of the Company ) on: +1 (778)
373-0100.
Forward Looking Statements
All statements, other than statements of historical fact, contained or incorporated by reference in this news
release, including any information as to the future financial or operating performance of the Company,
constitute "forward -looking statements" within the meaning of certain securities laws, including the "safe
harbour" provisions of the Securities Act (Ontario) and 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.
There can be no assurance that such statements will prove to be accurate. Such statements are subject to
significant risks and uncertainties, and actual results and future events could differ materially from those
anticipated in such statements. Forward-looking statements include, without limitation s uccess of exploration
activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated;
accidents; labour disputes; requirements for additional capital title disputes or claims and limitations on
insurance coverage. 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.