Orosur Mining Inc. – Second Quarter 2019/20 Results
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Orosur Mining Inc. – Second Quarter 2019/20 Results
Medellín, Colombia, January 14, 2020. 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,
2019 (“Q2 20” or the “Quarter”).
HIGHLIGHTS
In accordance with the Exploration Agreement with Venture Option (the “Exploration Agreement”), Newmont
Colombia made a further cash payment of US$690k to Minera Anzá in November 2019 to cover its outstanding
commitments and to maintain its Phase 1 earn-in rights.
In Uruguay, as announced on September 17, 2019, the Court approved the payment plan agreement between the
Company’s wholly owned subsidiary, Loryser SA (“Loryser”) and Loryser’s creditors (the “Creditors’ Agreement”).
The ratification by the Court means that the Creditors’ Agreement is legally binding on all trade creditors and that
the intervenor’s control over Loryser ceases.
The Creditors’ Agreement provides that the net proceeds from the sale of Loryser’s assets in Uruguay, together
with the issuance of 10 million common shares in Orosur, shall fully satisfy all amounts owing by Loryser to its trade
creditors, as well as provide funds for Loryser to conduct this process and manage the orderly closure of its
operations. The Creditors’ Agreement requires Loryser to manage and complete the sale and payment process
within two years, starting from the date of the ratification by the Court.
As announced on December 6, 2019, 10,000,000 common shares were issued to a trust for the benefit of Loryser’s
creditors in accordance with the court-approved agreement.
The non-binding letter of intent signed in November 2019 with IMC International Mining Corp. expired on
December, 27, 2019 without completing a definitive agreement. Loryser remains in discussions with IMC as well
as considering alternative options with other potential partners to sell its mining and exploration permits in
Uruguay.
The Company had a cash balance of US$809k at November 30, 2019 (May 31, 2019: US$512k).
Assets held for sale in Uruguay have been recorded in this quarter and in the FY19 consolidated financial statements
at the lower of book value or fair value. The consolidated financial statements were prepared on a going concern
basis under the historical cost method except for certain financial assets and liabilities which are accounted as
Assets and Liabilities held for sale and Profit and Loss from discontinuing operations: this accounting treatment has
been applied to the activities in Uruguay and Chile.
Outlook and Strategy
During the year ended May 31, 2018, the Board adopted an aggressive strategic plan to restructure its business, and
recapitalize and transform the Company. The Company’s main objectives were advancing the Anzá Project: the
Company’s flagship, high grade gold exploration asset in Colombia; finding a fair solution in Uruguay for all
stakeholders; and reducing its activities in Chile. This strategy remains unchanged.
In Colombia, Newmont Colombia has fulfilled its Year 1 commitments and payments under the requirements of the
Exploration Agreement.
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In Uruguay, with the Creditors Agreement approved by the Court in September 2019, Loryser continued to focus its
activities on the implementation of the Creditors Agreement. The plant and equipment remain under care and
maintenance. The successful sale of assets is a key component to a positive outcome with creditors. The Company has
already issued the 10,000,000 common shares in Orosur, subject to a four-month holding period, to the benefit of
Loryser’s creditors.
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 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
Newmont of those plans, Newmont´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.
For further information, please contact:
Orosur Mining Inc
Ignacio Salazar, Chief Executive Officer
Ryan Cohen, VP Corporate Development
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP – Nomad & Broker
Jeff Keating / Stephen Wong
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. 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.
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Orosur Mining Inc.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States Dollars)
Unaudited
As at As at
November 30, May 31,
2019 2019
ASSETS
Current assets
Cash and cash equivalents $ 809 $ 512
Accounts receivable and other assets 294 292
Assets held for sale 3,971 4,452
Total current assets 5,074 5,256
Non-current assets
Property, plant and equipment 80 87
Exploration and evaluation assets 8,170 8,983
Total assets $ 13,324 $ 14,326
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 232 $ 235
Warrants 2 13
Liabilities held for sale 22,243 23,393
Total liabilities 22,477 23,641
Equity
Share capital 65,290 65,290
Contributed surplus 5,978 5,947
Currency translation reserve (1,922) (1,653)
Total Deficit (78,499) (78,899)
Total (deficit) / equity (9,153) (9,315)
Total (deficit) / equity and liabilities $ 13,324 $ 14,326
The accompanying notes to the unaudited condensed interim consolidated financial statements are an integral part of
these statements.
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Orosur Mining Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Income (loss)
(Expressed in thousands of United States Dollars)
Unaudited
Three Months Three Months Six Months Six Months
Ended Ended Ended Ended
November 30, November 30, November 30, November 30,
2019 2018 2019 2018
Operating expenses
Corporate and administrative expenses $ (354) $ (574) $ (710) $ (833)
Exploration expenses (19) (18) (57) (38)
Other income 1 - 501 -
Net finance cost (2) - (3) (5)
(Loss) gain on fair value of financial instrument 21 (42) 9 (21)
Net foreign exchange gain/(loss) (13) (14) (10) (28)
(366) (648) (270) (925)
Net loss for the period for continuing operations $ (366) $ (648) $ (270) $ (925)
Other comprehensive loss
Cumulative translation adjustment $ (152) $ (559) $ (269) $ (749)
Total comprehensive income (loss) for the period
from continuing operations (518) (1,207) (539) (1,674)
Income (loss) from discontinuing operations 559 (1,228) 670 (7,336)
Total comprehensive income (loss) for the period 41 (2,435) 131 (9,010)
Basic and diluted net income (loss) per share for
continued operations $ (0.00) $ (0.00) $ (0.00) $ (0.01)
Basic and diluted net income (loss) per share for
discontinued operations $ 0.00 $ (0.01) $ 0.00 $ (0.06)
Weighted average number of common shares
outstanding 150,278 146,250 150,278 131,840
The accompanying notes to the unaudited condensed interim consolidated financial statements are an integral part of
these statements.
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Orosur Mining Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States Dollars)
Unaudited
Six Months Six Months
Ended Ended
November 30, November 30,
2019 2018
Operating activities
Net loss for the period $ (270) $ (925)
Adjustments for:
Share-based payments 31 36
Fair value of financial instrument (9) 13
Loss on sale of property, plant and equipment - 14
Other (43) (51)
Changes in non-cash working capital items:
Accounts receivable and other assets 138 9
Inventories - 1
Accounts payable and accrued liabilities (3) (295)
Net cash (used in) operating activities - continued operations (156) (1,198)
Investing activities
Proceeds received for exploration and evaluation expenditures 750 -
Exploration and evaluation expenditures (297) (311)
Net cash provided by (used in) investing activities - continued operations 453 (311)
Financing activities
Issue of common shares - 2,000
Advances to discontinued operations - 192
Net cash provided by financing activities - continued operations - 2,192
Net change in cash and cash equivalents - continued operations 297 683
Cash and cash equivalents, beginning of period 512 80
Cash and cash equivalents, end of period $ 809 $ 763
Net cash provided by (used in) investing activities - discontinued operations 120 (366)
Net cash (used in) operating activities - discontinued operations (311) (452)
Net cash provided by financing activities - discontinued operations - 34
The accompanying notes to the unaudited condensed interim consolidated financial statements are an integral part of
these statements.