Second Quarter Results for 2020/21
Orosur Mining Inc.
Second Quarter Results for 2020/21
London, January 14th, 2021. Orosur Mining Inc. ("Orosur" or "the Company") (TSX/AIM: OMI), a
South American-focused gold developer and explorer, is pleased to announce the results for the second
quarter ended November 30, 2020 ("Q2 21" or the "Quarter"). All dollar figures are stated in US$ unless
otherwise noted. The unaudited condensed interim financial statements of the Company for the quarter
ended November 30, 2020 and the related management's discussion and analysis have been filed and
are available for review on the SEDAR website at www.sedar.com. They are also available on the
Company's website at www.orosur.ca.
A link to the PDF version of this announcement is also available here:
http://www.rns-pdf.londonstockexchange.com/rns/6271L_1-2021-1-13.pdf
Highlights of the Second Quarter Results for 2020/21
Colombia
• As announced on September 3, 2020, an additional cash payment of $500k, in addition to the
$500k received in March 2020, was received by the Company from Newmont Colombia, in
connection with maintaining its earn-in rights pursuant to the Exploration Agreement.
• On September 30, 2020, Newmont Corporation, entered into a Joint Venture with Agnico Eagle
("Agnico") whereby it was agreed that the two companies jointly assume and advance Newmont's
prior rights and obligations with respect to the Anzá Project in Colombi a on a 50:50 basis, with
Agnico as operator of the Joint Venture. Orosur's Anzá Project is subject to the Exploration
Agreement with Newmont Colombia. Newmont Colombia then became the Joint Venture vehicle
between Newmont and Agnico and its name was change d to Minera Monte Águila SAS ("Monte
Águila").
• Orosur's position with respect to the Anzá project, and all terms and conditions of the Exploration
Agreement remain unchanged. Monte Águila assumes all rights and obligations with respect to the
Anzá Pr oject that were previously held by Newmont Colombia, with Orosur's wholly owned
subsidiary Minera Anzá remaining operator of the Anzá Project and conducting exploration work on
behalf of Monte Águila, until such time as Monte Águila assumes operatorship at its discretion.
• Initial funding of approximately $650k was received by Minera Anzá on October 2, 2020 from Agnico
to restart the exploration program. And a further $1,130k was received subsequent to the period
end on December 11, 2020. This fundi ng is to be directed solely to fund exploration on the Anzá
Project for the 12 month period starting September 7, 2020 and are the first two tranches of the
required $4 million of expenditure for this 12 month period per the terms of the Exploration
Agreement.
• This funding is not related to the payment in lieu, for the shortfall of qualifying expenditure for the
previous 12 months period ended September 6, 2020. The payment in lieu, which amounted to
$582k was received on November 5, 2020.
• Upon receipt of exploration funds, Minera Anzá began the process of re -establishing its field camp
at the Anzá project in readiness for commencement of field operations. In addition, a process of
recruitment was commenced to hire the required technical and logistics staff.
• Drilling operations commenced on the November 15, 2020, at the Anzá project, but no assay results
were returned during the quarter.
Uruguay
• In Uruguay, the Company has focused its activities on the implementation of the Creditors
Agreement, which was approved by the Court in September 2019, and the sale of the assets of its
Uruguayan subsidiary Loryser.
• Loryser is continuing with the reclamation of the tailings dam which is progressing well.
• Good progress is also being made on the sale of Loryser's other assets including plant and
equipment. The proceeds from these sales will be used to pay liabi lities in Uruguay in connection
with the aforementioned Creditors Agreement.
Financial and Corporate
• On November 30, 2020, the Company had a cash balance of $1.5 million (May 31, 2020 - $0.8
million). As at January 12, 2021 the cash balance was $7.6 million, subsequent to the private
placement and options exercised set out below.
• On October 30, 2020, 2,876,670 options were exercised by a number of employees and former
employees.
• Subsequent to the period end, on December 7, 2020, the Company completed a private placement
financing consisting of the sale of 23,529,412 units (the "Units") at 17 pence per Unit for aggregate
gross proceeds of £4 million ($5,372,000). Each Unit consiste d of one (1) common share in the
capital stock of the Company ("Common Share") and one -half (1/2) of one Common Share
purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to
acquire an additional Common Share at a pr ice of 25.5 pence for a period of 12 months from the
date of issuance.
For further information, please contact:
Orosur Mining Inc
Louis Castro, Chairman,
Brad George, CEO
[email protected] Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Broker
Jeff Keating / Caroline Rowe Tel: +44 (0) 20 3 470 0470
Flagstaff Communications
Tim Thompson
Mark Edwards
Fergus Mellon
[email protected] 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 Regulation ("MAR "). Upon the publication of this announcement via
Regulatory Information Service, this inside information is now considered to be in the public domain.