Second Quarter Results for 2021/22
Orosur Mining Inc.
Second Quarter Results for 2021/22
London, January 31st, 2022. Orosur Mining Inc. ("Orosur" or "the Company") (TSXV/AIM: OMI ),
a South American -focused gold developer and explorer, is pleased to announce the results for the
second quarter ended November 30, 2021 ("Q2 22" or the "Quarter"). All dollar figures are stated in
US$ unless otherwise noted. The unaudited condensed inte rim financial statements of the Company
for the quarter ended November 30, 2021 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 the financial statements is available here: http://www.rns-
pdf.londonstockexchange.com/rns/0621A_1-2022-1-30.pdf
A link to the PDF version of the MDA is available here: http://www.rns-
pdf.londonstockexchange.com/rns/0621A_2-2022-1-30.pdf
Highlights of the Second Quarter Results for 2021/22
Colombia
• As announced on September 7, 2021, the Company was informed by its Colomb ian Joint
Venture ("JV") partner, Minera Monte Águila SAS ("Monte Águila") that it had elected to
exercise its right to assume operatorship of the Anzá Project in Colombia. Monte Águi la is
a 50/50 JV between Newmont Corporation ("Newmont") (NYSE:NEM, TSX:N EM) and
Agnico Eagle Mines Limited ("Agnico") (TSX:AEM), and is the vehicle by which these two
companies jointly exercise their rights and obligations with respect to the Exploration
Agreement with Venture Option ("Exploration Agreement") over the Anzá Project.
• The Anzá Project is now in its fourth year of Phase 1 during which time a further US$4.0
million is required to be spent pursuant to the Exploration Agreement.
• While Monte Águila manages the Anzá Project, Minera Anzá will continue to be the 100%
owner of the licences, until such time as Monte Águila has met its financial obligations with
respect to the Exploration Agreement and elected to move to Phase 2 by September 2022.
Uruguay
• In Uruguay, the Company's wholly owned s ubsidiary, Loryser, continues to focus its
activities on the implementation of the Creditors Agreement and the sale of its Uruguayan
assets. Loryser is also continuing with the reclamation and remediation of the tailings dam.
• As part of the Creditors Agreement, Orosur issued 10,000,000 Orosur common shares, in
December 2019, to a trust for the benefit of Loryser's creditors. On September 10, 2021
the Company announced th at it had been informed by the San Gregorio Trust that it had
successfully sold its entire shareholding of 10 million common shares in the Company,
which amount will be applied to meet Loryser's obligations under the Creditors Agreement.
• Good progress is being made on the sale of Loryser's other assets including plant and
equipment. The proceeds from all of these sales will be used to pay liabilities in Uruguay
in connection with the aforementioned Creditors Agreement.
Financial and Corporate
• The unaudited consolidated financial statements have been prepared on a going concern
basis under the historical cost method except for certain financial assets and liabilities
which are accounted for as Assets and Liabilities held for sale (at the lower o f book value
or fair value) and Profit and Loss from discontinuing operations. This accounting treatment
has been applied to the activities in Uruguay and Chile.
• On October 15, 2021 the Company announced that it had received approval to transfer its
listing from the TSX to the TSX Venture Exchange. The Company believes that the transfer
will provide it with operational efficiencies, with lower costs and with a reporting regime
which is closer to that of the AIM market, whilst allowing shareholders to have continued
trading liquidity in Canada.
• On November 30, 202 1, the Company had a cash balance of US$5,329k (May 31, 2021
US$6,958k). As at the date of this announcement the Company had a cash balance of
US$4,964k.
• Post the period end, on January 14, 2022, the Company announced that it had entered
into a joint venture with Meridian Mining UK Societas in relation to the Ariquemes tin project
in Rondonia state in north west Brazil. The JV terms are largely in line with those indicated
in the Letter of Intent ("LOI") signed and announced on July 7, 2021.
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 considere d 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 Col ombia and Brazil and the funding from Newmont/Agnico of those plans,
Newmont/Agnico´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 obta in 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 Company's MD A 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
Condensed Interim Consolidated Statements of
Financial Position (Expressed in thousands of United
States dollars)
Unaudited
As at
As at
November 30,
2021
May 31,
2021
ASSETS
Current assets
Cash and cash equivalents
$ 5,329
$ 6,958
Restricted cash 2,508 1,367
Accounts receivable and other assets 192 201
Assets held for sale in Uruguay 1,270 2,314
Total current assets 9,299 10,840
Non-current assets
Property, plant and equipment
118
124
Exploration and evaluation assets Colombia 5,623 5,148
Total assets $ 15,040 $ 16,112
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities
$ 486
$ 486
Liabilities of Chile discontinued operation 2,051 2,047
Warrant liability 861 1,734
Liabilities held for sale in Uruguay 15,747 16,830
Total current liabilities 19,145 21,097
Deficit
Share capital
69,333
69,333
Shares held by Trust - (165)
Contributed surplus 9,882 8,591
Currency translation reserve (2,020) (1,826)
Deficit (81,300) (80,918)
Total deficit (4,105) (4,985)
Total liabilities and deficit $ 15,040 $ 16,112
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in thousands of United States dollars)
Unaudited
Three Months Ended
November
30, 2021
Three Months
Ended
November
30, 2020
Six Months
Ended
November
30, 2021
Six Months
Ended
November
30, 2020
Operating expenses
Corporate and administrative expenses $ (565)
$ (284)
$ (885)
$ (533)
Exploration expenses (10) (8) (10) (29)
Share-based compensation (147) (4) (315) (8)
Other income 1 3 2 11
Net finance cost (2) (2) (3) (3)
Gain on fair value of warrants 501 - 873 -
Net foreign exchange gain (33) 31 (102) 17
Net (loss) for the period for continued operations $ (255) $ (264) $ (440) $ (545)
Other comprehensive income (loss):
Cumulative translation adjustment $ 7 $ 1
9
1
$ (194) $ 157
Total comprehensive (loss) for the
period from continued operations
(248)
(73)
(634)
(388)
Income (loss) income from discontinued
operations 1,601 (404) 58 (1,479)
Total comprehensive income
(loss) for the period
1,353 (477) (576) (1,867)
Basic and diluted net (loss)
income per share for continued
operations
$ (0.00)
$ (0.00)
$ (0.00)
$ (0.00)
Basic and diluted net (loss)
income per share for
discontinued operations
$
0.01
$
(0.00)
$
0.00
$
(0.01)
Weighted average number of
common shares outstanding
188,420
161,357
188,420
160,814
(Expressed in thousands of United States dollars)
Unaudited
Six Months Six Months
Ended Ended
November 30, November 30,
2021 2020
Operating activities
Net (loss) for the period for continued and discontinued
operations
$ (382) $ (2,024)
Adjustments for:
Share-based compensation 315 8
Labor provision adjustments (1,499) -
Obsolescence provision (300) -
Fair value of warrants (873) -
Gain on sale of property, plant and equipment (111) (341)
Foreign exchange and other (201) 1,409
Changes in non-cash working capital items:
Accounts receivable and other assets 86 (62)
Inventories 716 698
Accounts payable and accrued liabilities 981 (659)
Net cash used in operating activities (1,268) (971)
Investing activities
Increase in the restricted cash (1,140) -
Proceeds received for sale of property, plant and
equipment
111 445
Environmental tasks (477) -
Proceeds received from exploration and option agreement 1,077 1,549
Exploration and evaluation expenditures (1,619) (212)
Net cash (used in) provided by investing activities (2,048) 1,782
Financing activities
Proceeds from the sale of treasury shares 1,140 -
Proceeds from exercise of options - 44
Net cash provided by financing activities 1,140 44
Net Change in cash and cash equivalents (2,176) 855
Net change in cash classified within assets held for sale 547 (94)
Cash and cash equivalents, beginning of period 6,958 782
Cash and cash equivalents, end of period $ 5,329 $ 1,543
Operating activities
- continued operations (1,087) (620)
- discontinued operations (181) (351)
Investing activities
- continued operations (1,682) 1,337
- discontinued operations (366) 445
Financing activities
- continued operations 1,140 44