Orosur Mining Inc. - Q2 2019 Update and Results
Orosur Mining Inc. - Q2 2019 Update and Results
Medellin, Colombia, January 14, 2019. Orosur Mining Inc. (“Orosur” or “the Company” ) (TSX/AIM: OMI), a
South American-focused gold developer and explorer announces the results for the second quarter ended
November 30, 2018 (“Q2 19” or the “Quarter”). All dollar figures are stated in thousands of US dollars unless
otherwise stated.
HIGHLIGHTS
• On September 10, 2018, the Company completed several agreements with Newmont for the Anzá
exploration property in Colombia:
o The non-brokered private placement of $2 million; and,
o An exploration agreement with venture option. The Exploration and Option Agreement includes a
three-phase earn-in structure allowing Newmont to earn up to a 75% ownership interest in the
Anzá Project by making cash payments to Orosur equaling a total of $4 million over Phases 1 and
2, spending a minimum of $30 million in qualifying expenditures over twelve years, and in addition
completing NI 43-101 compliant pre-feasibility and feasibility studies.
• The re -organisation process has been ongoing in Uruguay since June 2018 . In August 2018, the
Company placed its San Gregorio mining operations under care and maintenance. On December 18,
2018, the Company announced Loryser had reached a payment plan with its creditors (currently signed
by approximately 70% of creditors, by value ). This agreement contemplates that net proceeds from the
sale of Loryser’s assets in Uruguay together with the issuance of 10 million common shares of Orosur
shall fully satisfy all amounts owing to Loryser’s creditors as well as provide funds for Loryser to conduct
this process and close operation responsibly. Loryser would manage the process, to be completed within
two years. The issuance of common shares of Orosur is subject to approval of the Toronto Stock
Exchange. The Agreement is now subject to consideration by the Court and the Intervenor, and normal
procedures for approval, like public notice, which the Company expects to conclude in the first half of
2019. Once approved by the Court, the Agreement will be legally binding for all the creditors and Loryser’s
creditor protection status will cease together with Intervenor’s control over Loryser.
• During the three months ended November 30, 2018, the Company incurred a net loss of $1,874 ($252 for
the three months ended November 30, 2017), which included care and maintenance costs of $613 at the
San Gregorio mine, restructuring costs of $645 relating to the termination of employees at San Gregorio,
and corporate expenses of $639 ($749 for the three months ended November 30, 2017). Gold production
and revenues ceased in August 2018.
Ignacio Salazar, CEO of Orosur, said:
“After many months of hard and patient work, the Company has managed to crystalize two deals which provide
a platform to transform Orosur: an agreement in Colombia with Newmont which provides the structure,
financing and technical support to build a significant project in Anzá, and a significant vote of confidence from
an impressive majority of 70% of the Loryser creditors to our proposed plan to reach a fair and balanced
solution to the re-organisation proceedings in Uruguay. We are delighted with these two milestones and very
aware of the work in front of us and our commitment to deliver on both agreements. ”
Forward Looking Statements
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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, the ability to continue operations in Uruguay, and
the approval by the Court of the Agreement in Uruguay, expectations that the Agreement will become legally
binding on all creditors of Loryser and successful emergence from creditor protection proceedings and
Intervenor control. 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 the outcome of current discussions and
negotiations with respect to the Company’s assets in Uruguay, the results of future exploration in Colombia,
and other risks and uncertainties which are descri bed in Section 8 of the Management’s Discussion and
Analysis for the three months ended November 30, 2018 and for the year ended May 31, 2018. The Company’s
continuance as a going concern is dependent upon its ability to obtain adequate financing and to re ach
profitable levels of operations. 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. Although the Company has
been successful in the past in obtaining financing there is no assurance that it will be able to obtain adequate
financing in future or that such financing will be on terms advant ageous to the Company. 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.
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.
For further information, please contact:
Orosur Mining Inc
Ignacio Salazar, Chief Executive Officer
Ryan Cohen, VP Corporate Development & Interim CFO
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
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 and Interim CFO of the Company (responsible for arranging
release of this announcement on behalf of the Company) on: +1 (778) 373-0100.
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