Orosur Mining Inc. - Brazil Update JV signed with Meridian Mining on Ariquemes Tin Project in Brazil Company to earn 75% equity interest by investing US$3m over four years.
Orosur Mining Inc. - Brazil Update
JV signed with Meridian Mining on Ariquemes Tin Project in Brazil
Company to earn 75% equity interest by investing US$3m over
four years.
London, January 14 th, 2022. Orosur Mining Inc. ("Orosur" or the
"Company") (TSX-V/AIM:OMI), is pleased to announce that it has signed a
Joint Venture (JV) agreement with Meridian Mining UK Societas (TSXV:
MNO) (Frankfurt: 2MM) (Tradegate: 2MM) (OTCQB: MRRDF) ("Meridian")
in relation to the Ariquemes tin project ("Project") in Brazil.
The JV terms are largely in line with those indicated in the Letter of Intent
("LOI") signed and announced on July 7 th 2021, in which the Company can
earn an equity interest of 75% in the Ariquemes project by spending US$3m
over a four-year period, in two phases:
1. Phase 1 - earn 51% interest by spending US$1 million over a 24-
month period.
2. Phase 2 - earn an additional 24% interest by spending US$2 million
over a subsequent 24-month period.
3. Following this point, the two parties would jointly fund the Project on
a pro-rata basis or dilute to a net smelter royalty.
The JV will require the establishment of two new corporate entities to hold
the exploration licences and applications, which will include a top holding
company in Canada, and a local operating company in Brazil. This process
will commence immediately but may take several months to complete, at
which time the granted licences will begin to be transferred across to the new
structure and the JV can formally commence.
In the meantime, the Company will immediately commence desktop
exploration work, data compilation, regional targeting, formulation of
exploration plans and budgets and logistical planning. Members of the
Company's board, executive and technical specialists will be on site in the
coming days to commence the process.
Further details of the Project and plans will be communicated following this
visit.
Ariquemes
The Ariquemes project comprises a large collection of granted tenements
and applications, totalling almost 3,000km 2, in Rondônia State, western
Brazil. The licenses were all accumulated and owned 100% by Meridian (via
its local subsidiary) and represent the dominant land position in the Rondônia
Tin Province, one of the world's most significant tin regions.
The region was identified by Meridian following extensive conceptual work,
with later regional work confirming the Project's potential. An extensive
database of historical and recent exploration data is available and has been
reviewed by the Company.
The Company has approximately US$5 million cash on its balance sheet and
is therefore well placed to fund the initial works from its existing resources.
Orosur CEO Brad George commented:
"We are excited to have finally completed this agreement. With Anza
handed over and Covid finally abating, the ability to move to a new phase of
work for the Company is something we have been anticipating for some time.
"Ariquemes represents a tremendous opportunity with a huge land holding
in a proven district, for one of the sector's most important, and yet overlooked
commodities."
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
Andy Thacker
JamesPope
Tel: +44 (0)20 3657 0050
Flagstaff Strategic and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
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 (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-V: 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 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 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
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 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 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.