Orosur Mining Inc - Colombia update •Newmont to continue at Anzá gold project •US$500,000 option payment received
Orosur Mining Inc - Colombia update
•Newmont to continue at Anzá gold project
•US$500,000 option payment received
London, September 3 rd, 2020. Orosur Mining Inc. ("Orosur" or the "Company")
(TSX/AIM:OMI), announces that it has been informed by Newmont Colombia S.A.S.
("Newmont Colombia") a subsidiary of Newmont Corporation (NYSE:NEM), that it
intends to continue to exercise its rights and obligat ions with regard to the Anzá
gold project in Colombia (the "Anza Project") under the terms of the Exploration
Agreement with Venture Option (the "Agreement") signed and announced in
September 2018.
Newmont Colombia has now paid the fourth and final cash payment of US$500,000
required under the Phase I earn-in arrangement to retain its option and to continue
into the 3 rd year of Phase 1 of the Agreement during which year it is required to
spend a further US$4 million in qualifying expenditure on the Anza Project.
In addition, should qualifying expenditure incurred on the Anzá Project for the year
ending 7th September 2020, fall short of the required US$1m under the Agreement,
Newmont Colombia will be required to meet such shortfall by making a payment
equal to the shortfall to the Company no later than 6 th November 2020. The
amount of such payment would be determined once the total of qualifying
expenditure for the year ending 7th September 2020 has been accounted for.
In the 3 rd and 4 th years of Ph ase 1 of the Agreement, Newmont Colombia will be
required to spend a total of US$8 million in qualifying expenditure on the Anzá
Project to acquire a 51% ownership interest. No further cash payments are due to
the Company in the remaining two years of Phase 1 of the Agreement.
To view the full PDF version of this announcement, including Figures 1-3 referred to
below, please click here: http://www.rns-
pdf.londonstockexchange.com/rns/8663X_1-2020-9-2.pdf
About the Anzá Project
Anzá is a gold exploration project, comprising three exploration licences, four
exploration licence applications, and several small exploitation permits, totalling
207.5km2 in the prolific Mid-Cauca belt of Colombia.
The Anzá Project is currently wholly owned by Orosur via its subsidiary, Minera
Anzá S.A.
The project is located 50km west of Medellin and is easily accessible by all-weather
roads and boasts excellent infrastructure including water, power, communications
and large exploration camp.
Anzá lies some 60km south along strike from the giant Buriticá deposit, recently
acquired by Zijin Mining for CAN$1.4 billion.
Figure 1. Anzá Location Map
The Anzá Project was acquired by Orosur in 2014, via the acquisition by Orosur of
Canadian company Waymar Resources (Waymar) (TSXV:WYM).
Orosur and Waymar explored the project using a variety of techniques including
over 24,000m of drilling. Most drilling focussed on the APTA prospect, with a small
drilling program identifying mineralisation 1.5km west at the Charrascala prospect.
Geochemistry and other work identified several other targets (Jesuitas, Guaimarala
and La Cejita) which have not been drill tested (Figure 2)
Drilling at APTA has defined multiple zones of high -grade gold mineralisation
covering a strike of approximately 1.5km, to a depth extent of over 275m, with
mineralisation remaining open in all directions. (Figure 3) (Appendix I)
In September 2018, the Anzá project was optioned to Newmont Colombia.
Figure 2. Surface Geochemistry and Target Zones
Figure 3. APTA Drill Plan and Section
Exploration Agreement with Venture Option
The Agreement is described on SEDAR and in previous announcements made by
the Company. The key points, which were announced on 10 September 2018, are
as follows:
The Agreement provides for a three -phase earn-in structure allowing Newmont
Colombia to earn up to a 75% ownership interest in the Anzá Project by spending a
minimum of US$30.0 million in qualifying expenditures over twelve years to 2030,
completing an NI 43 -101 compliant feasibility study and making total cash
payments to Orosur of US$4.0 million over Phases 1 and 2.
In Phase 1, Newmont may earn a 51% ownership interest by spending US$10.0
million in qualifying project expenditures over four years to September 2022 and
making total cash payments to Orosur of US$2.0 million during the first two yea rs
of the Phase 1 earn -in period. Upon Newmont Colombia's completion of Phase 1,
it may elect, in its sole discretion, to exercise its option to form a joint venture with
Minera Anzá S.A.
In Phase 2 commencing October 2022, Newmont may elect to earn an add itional
14% ownership interest in the Anz á Project by sole -funding US$20.0 million in
qualifying expenditures within four years, completing an NI 43-101 compliant pre-
feasibility study and making total cash payments to Orosur of US$2.0 million.
In Phase 3 commencing 2026, Newmont may elect to earn an additional 10%
ownership interest in the Anz á Project by completing an NI 43 -101 compliant
feasibility study within four years.
Upon Newmont completing the Phase 3 earn-in, Orosur may elect for Newmont to
solely fund all expenditures until the commencement of commercial production at
the Anzá Project. If the Company elects for Newmont to do so:
• Newmont's ownership interest shall increase by 5% to 80% in the Anz á
Project;
• Upon the commencement of commercial production, Orosur shall
commence contributing funds for adopted programs and budgets in
proportion to its ownership interest or suffer dilution of its ownership
interest; and
• Newmont shall receive 90% of Orosur's distribution of earnings or dividends
until such time as the amounts received equal the aggregate amount of
expenditures incurred by Newmont on behalf of Orosur plus nominal
interest.
Brad George, CEO of Orosur, commented:
"We have long valued Newmont as both partner and major shareholder, and we
are delighted with their decision to continue to work with us on the Anzá Project"
Appendix I
Table 1 Previously announced notable drill results from the APTA Prospect
Hole
Number From (m) To (m)
Interval
(m) Au (g/t) Ag (g/t) Zn (%)
MAP_011 213.00 219.00 6.00 18.26 1.96 0.35
including 217.50 219.00 1.50 72.30 6.90 0.93
MAP_020 145.00 186.00 41.00 3.85 1.39 1.25
including 171.30 177.00 5.70 19.84 3.94 1.66
MAP_021 224.00 242.00 18.00 14.14 2.05 2.83
including 225.00 229.40 4.40 45.62 5.47 10.59
252.00 253.00 1.00 10.85 1.80 0.67
MAP_029 183.00 194.90 11.90 10.57 2.40 1.61
including 185.00 187.00 2.00 40.25 4.85 4.64
MAP_033 157.10 179.50 22.40 10.42 1.87 1.56
including 165.00 170.80 5.80 29.49 3.37 2.81
MAP_036 198.60 227.50 28.90 3.88 1.68 0.43
including 205.50 217.50 12.00 8.83 2.65 0.59
MAP_038 123.40 124.50 1.10 15.40 3.60 1.94
172.00 212.50 40.50 14.09 3.82 1.95
including 179.50 186.00 6.50 70.99 6.34 0.12
including 184.60 186.00 1.40 176.00 15.20 0.39
including 202.00 205.40 3.40 20.89 9.71 4.75
MAP_043 65.50 68.60 3.10 7.66 73.04 0.68
167.50 231.50 64.00 1.88 1.88 0.70
including 209.00 214.00 5.00 9.07 3.40 0.70
MAP_047 105.00 118.30 13.30 2.24 316.25 1.00
including 106.00 110.50 4.50 4.69 768.89 2.34
MAP_048 181.00 195.70 14.70 40.37 9.00 3.41
including 185.50 195.70 10.20 58.03 13.16 4.85
including 187.60 189.50 1.90 219.00 29.50 6.55
MAP-054 41.40 59.30 17.90 2.96 26.97 0.32
including 41.40 43.20 1.80 10.25 76.90 1.22
including 44.70 52.00 7.30 3.39 33.77 0.37
97.10 110.90 13.80 4.36 1.19 0.77
including 97.10 101.73 4.63 5.47 1.59 1.44
including 107.60 110.90 3.30 10.35 0.83 0.14
144.50 149.82 5.32 17.76 1.55 4.74
including 144.50 145.70 1.20 8.71 0.90 0.80
including 145.70 146.70 1.00 37.96 1.30 0.70
including 146.70 148.00 1.30 19.76 1.40 0.25
including 148.00 148.87 0.87 17.63 1.50 7.56
including 148.87 149.82 0.95 5.31 2.90 17.54
149.82 159.10 9.28 1.84 0.94 2.26
including 153.00 155.00 2.00 3.43 0.97 1.14
309.20 313.20 4.00 2.96 5.70 0.41
MAP_055 177.00 190.90 13.90 4.89 4.86 1.35
including 177.00 181.00 4.00 6.26 3.35 0.57
including 185.00 190.90 5.90 7.24 8.73 2.78
MAP_056 223.00 235.00 12.00 1.33 0.90 0.05
including 231.00 233.00 2.00 2.62 1.00 0.02
MAP_058 246.00 250.00 4.00 1.10 3.45 0.15
including 274.50 276.50 2.00 4.55 6.50 0.13
MAP_059 163.50 195.00 31.50 1.86 2.39 0.49
including 181.00 188.00 7.00 4.66 2.17 0.27
including 192.00 194.00 2.00 3.40 3.55 0.56
230.50 242.50 12.00 1.96 2.73 0.50
including 230.50 236.50 6.00 3.15 1.75 0.63
MAP-060 70.00 75.50 5.50 3.34 3.55 0.56
165.00 192.00 27.00 1.81 0.87 0.33
including 180.00 186.00 6.00 2.92 0.67 0.20
including 189.00 192.00 3.00 4.60 2.90 1.52
222.00 247.00 25.00 4.86 3.23 1.73
including 222.00 226.00 4.00 7.92 4.13 1.94
including 235.00 238.00 3.00 9.54 5.37 0.33
including 245.00 246.00 1.00 14.43 3.40 0.95
MAP_062 60.00 65.30 5.30 5.09 12.06 0.37
including 62.20 64.20 2.00 7.61 16.90 0.80
167.50 176.50 9.00 1.69 0.62
217.00 240.00 23.00 5.00 3.37 0.40
including 220.00 221.00 1.00 16.02 9.40 0.81
including 229.70 232.20 2.50 8.59 2.98 0.66
including 237.70 240.00 2.30 14.94 7.88 0.13
MAP_064 116.00 122.00 6.00 1.57 19.98 1.73
147.00 151.00 4.00 0.84 0.60 0.04
190.00 197.00 7.00 3.45 1.00 3.79
including 193.00 197.00 4.00 5.43 1.50 6.41
265.00 273.70 8.70 1.67 3.13 5.35
283.70 285.30 1.60 3.18 1.94 3.03
292.00 294.00 2.00 2.04 1.75 5.90
297.00 299.00 2.00 1.03 1.05 2.18
MAP_065 140.00 144.10 4.10 2.22 1.37 0.04
283.30 288.45 5.15 1.24 5.75 0.11
including 284.30 286.10 1.80 2.70 10.30 0.09
312.00 313.50 1.50 1.05 0.60 0.54
MAP_067 161.70 168.10 6.40 1.74 2.52 0.34
including 162.80 165.00 2.20 4.14 30.50 0.79
176.40 192.20 15.80 1.07 2.04 0.06
including 179.00 184.00 5.00 2.24 3.28 0.13
235.00 243.20 8.20 1.36 0.78 0.38
including 237.00 241.20 4.20 2.09 0.87 0.49
MAP_070 168.00 192.00 24.00 1.84 1.64 1.09
including 168.00 173.00 5.00 1.66 3.52 4.81
including 183.00 184.00 1.00 23.66 3.60 0.04
including 186.00 192.00 6.00 1.16 0.72 0.02
208.00 212.00 4.00 1.13 1.72 0.61
221.00 233.00 12.00 5.28 2.48 1.10
including 222.00 226.00 4.00 6.38 3.10 2.28
including 228.00 233.00 5.00 6.99 2.78 0.65
246.00 248.00 2.00 6.28 6.30 1.41
including 256.00 267.00 11.00 6.35 2.74 1.55
284.00 298.00 14.00 5.02 2.23 1.10
including 286.00 292.00 6.00 9.62 2.90 1.75
302.00 307.00 5.00 1.57 3.94 1.67
Notes:
1. Significant intervals are chosen based on continuity of mineralization and gold grade.
2. All intervals are reported as drilled thicknesses; true thicknesses are estimated to be 65 -85% of drilled
thicknesses.
3. Gold grades have been calculated based on weighted averages
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
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.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a precious metals developer and explorer focused on identifying and
advancing gold projects in South America. The Company 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 no t 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
Newmont of those plans, Newmont´s decision to continue with the Exploration and Option agreement, the ability
for Loryser to continue and finaliz e 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 continuan ce 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.