Second Quarter Results for 2022/23
Orosur Mining Inc.
Second Quarter Results for 2022/23
London, January 30th, 2023. Orosur Mining Inc. ("Orosur" or "the Company") (TSXV/AIM: OMI ),
a South American-focused minerals explorer and developer, is pleased to announce its results for the
second quarter ended November 30, 2022 ("Q2 23" 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, 2022 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.
Highlights of the Second Quarter Results for 2022/23
Colombia
On 6th September 2022, the Company announced assay results from the Pepas prospect to
the north of Anza, including assay results from PEP001 which returned a substantial, high-
grade intersection of 150.9m @ 3.00g/t Au (from surface). Also announced on that day, that
Monte Aguila had informed the Company that it had met its expenditure of US$4m for the
year.
On 9th September 2022, the Company announced that its JV partner, Monte Águila provided
the Company with a Phase 1 Earn-In Notice, having completed all of the Phase 1 obligations,
including investing US$10 million in the Anza Project. The Company and Monte Aguila will
begin the process of forming a new mining company ("Mining Company") that will hold title
to the Anza Project's concessions and applications. The Company was also notified by Monte
Aguila that in accordance with the Exploration Agreement, it will enter Phase 2 following
negotiation and execution of a joint venture agreement to govern the operations of the
Mining Company. Once the Mining Company is formed, which is expected to take several
months, Orosur will initially have 49% ownership and Monte Aguila, 51% ownership in the
Mining Company, which will be managed by Monte Aguila.
On 21st October 2022, the Company announced assay results from four additional diamond
drill holes at Pepas and Pupino. Both the Pepas and Pupino prospects are located in the
northern region of the Anzá Prospect, roughly 12km and 8km respectively north northeast
from the central APTA prospect that had seen most drilling at Anzá up until early 2022. At
PEPAS, holes PEP005 and PEP007 were drilled from the same pad as PEP001 but in different
directions. Both holes returned substantial gold intersections, with the best at PEP007 being
80.55m @ 3.05g/t Au from surface (including 41.75m @ 5.24g/t).Two additional holes are
currently underway from new pads in an attempt to better define the geometry of the
mineralised body at Pepas.
On 2 nd December 2022, after the period end, the Company announced assay results from
another 4 holes at Pepas, holes PEP002,006,008 and 009. Holes PEP002 and 006 did not yield
significant results. Two new drill pads were constructed to drill holes PEP008 and PEP009.
Both holes intersected mineralised structures, largely as expected, but with lower levels of
gold mineralisation than intersected in previous drilling. Near term focus will now shift away
from drilling to focus on field mapping, sampling and trenching activities will continue across
the Project to define further drilling targets, including additional surface works specifically in
the Pepas prospect area.
On 17 January 2023, the Company announced that negotiations to complete the Mining
Company Constituent Documents with Minera Monte Aguila are progressing and that the
US$2 million Phase 2 Payment will be paid soon. The formation of the new Mining Company,
which will take several months, is underway. Once formed, the Mining Company will be
owned 49% by Orosur and 51% by Minera Monte Aguila who will also be the manager. MMA
may earn an additional 14% ownership in the Mining Company if it has spent US$20 million in
qualifying exploration expenditures on the Project on or prior to the fourth anniversary of the
parties entering into the Mining Company Constituent Documents. If the Phase 2 earn-in is
completed, MMA would own 65% of the Mining Company and the Company would own the
remaining 35%.
Uruguay
In Uruguay, the Company's wholly owned subsidiary, Loryser, continues to focus its activities
on the implementation of the Creditors Agreement and the sale of its Uruguayan assets.
Loryser has successfully finalised the reclamation and remediation works on the tailings dam
and has now started a one-year post-closure control phase.
During the course of the year, Loryser agreed and paid for the settlements with all of its
former employees, with the proceeds received from the sale of certain of its assets.
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 of 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 30 th November 2022, the Company had a cash balance of US$2,906k (31 st May 2022,
US$4,221k). As at the date of this announcement the Company had a cash balance of
US$3,549k.
Post the period end, on 7 th December 2022, all of the outstanding 10,897,058 warrants
expired and so the fully diluted share capital of the Company as at the date of this
announcement is 199,885,299.
For further information, visit www.orosur.ca, follow on twitter @orosurm or 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 / Kasia Brzozowska
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker
James Pope
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 considered 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 has discontinued
operations in 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 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 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 Company's MDA. 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.
Qualified Persons Statement
The information in this news release was compiled, reviewed and verified by Mr. Brad George, BSc Hons (Geology
and Geophysics), MBA, Member of the Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Ltd and
a qualified person as defined by National Instrument 43-101. Orosur Mining staff follow standard operating and
quality assurance procedures to ensure that sampling techniques and sample results meet international reporting
standards.
Drill core is split in half over widths that vary between 0.3m and 2m, depending upon the geological domain. One
half is kept on site in the Minera Anzá core storage facility, with the other sent for assay. Industry standard QAQC
protocols are put in place with approximately 20% of total submitted samples being blanks, repeats or Certified
Reference Materials (CRMs).
Samples are sent to the Medellin preparation facility of ALS Colombia Ltd, and then to the ISO 9001 certified ALS
Chemex laboratory in Lima, Peru. 30 gram nominal weight samples are then subject to fire assay and AAS analysis
for gold with gravimetric re-finish for overlimit assays of >10g/t. ICP-MS Ultra-Trace level multi-element four-acid
digest analyses is also undertaken for such elements as silver, copper, lead and zinc, etc.Gold intersections are
reported using a lower cut-off of 0.3g/t Au over 3m.
Orosur Mining Inc.
Condensed Interim Consolidated Statements of
Financial Position (Expressed in thousands of
United States dollars)
Unaudited
As at
As at
November 30,
2022
May 31,
2022
ASSETS
Current assets
Cash and cash equivalents
$ 2,906
$ 4,221
Restricted cash 83 353
Accounts receivable and other assets 155 186
Assets held for sale in Uruguay 2,390 1,160
Total current assets 5,534 5,920
Non-current assets
Property, plant and equipment
92
113
Exploration and evaluation assets Colombia 4,602 5,441
Total assets $ 10,228 $ 11,474
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities
$ 258
$ 389
Liabilities of Chile discontinued operation 2,102 2,058
Warrant liability - 168
Liabilities held for sale in Uruguay 12,998 13,134
Total current liabilities 15,358 15,749
Deficit
Share capital
69,341
69,339
Contributed surplus 10,539 10,540
Currency translation reserve (3,060) (2,125)
Deficit (81,950) (82,029)
Total deficit (5,130) (4,275)
Total liabilities and deficit $ 10,165 $ 11,474
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Loss and
Comprehensive Income and Loss (Expressed in thousands of United
States dollars)
Unaudited
Thr
e
e
M
o
n
Three
Months
Ended
November
30,
Six Months
Ended
November
30,
Six Months
Ended
November
30,
t
h
s
E
n
d
e
d
Nov
emb
er
30,
2022 20
21
2022 2021
Operating expenses
Corporate and administrative
expenses $ (436)
$ (565
)
$ (84
3)
$ (88
5)
Exploration
expenses (185)
(10
)
(24
7)
(10)
Share-based
compensation -
(147
)
- (31
5)
Other
income 2
1 8 2
Net finance
cost (3)
(2) (5) (3)
Gain on fair value of
warrants 92
501 16
8
873
Foreign exchange (loss) gain
net (13)
(33
)
(52) (10
2)
Net (loss) for the period for continued operations
$ (543) Other comprehensive (loss) income:
Cumulative translation
adjustment $ (430)
$ (255
)
$ 7
$ (97
1)
$ (93
5)
$ (44
0)
$ (19
4)
Total comprehensive (loss) for the
period from continued operations
(97
3)
(248
)
(1,90
6)
(63
4)
Income (loss) from discontinued operations
97
9
1,601
1,05
0
58
Total comprehensive income (loss) for
the period
6 1,353 (85
6)
(57
6)
Basic and diluted net (loss) income per
share for continued operations
$ (0.0
0)
$ (0.00
)
$ (0.0
1)
$ (0.0
0)
Basic and diluted net (loss) income per
share for discontinued operations
$
0.01
$
0.01
$
0.01
$
0.00
Weighted average number of common
shares outstanding
188,552
188,420
188,536
188,420
Orosur Mining Inc.
Consolidated Statements of Cash
Flows (Expressed in thousands of
United States dollars)
Three Months
Ended
Three Months
Ended
November 30,
2022
November 31,
2021
Operating activities
Net loss for the year for continued and discontinued
operations
$ 79 $ (382)
Adjustments for:
Share-based payments - 315
Labour provision adjustments - (1,499)
Obsolescence provision (3,107) (300)
Fair value of warrants (168) (873)
Gain on sale of property, plant and equipment (1,396) (111)
Foreign exchange and other (163) (201)
Changes in non-cash working capital items:
Accounts receivable and other assets (101) (86)
Inventories 3,419 716
Accounts payable and accrued liabilities (37) 981
Net cash used in operating activities (1,474) (1,234)
Investing activities
Increase (decrease) in the restricted cash 270 (719)
Proceeds received for sale of property, plant and
equipment
545 111
Environmental rehabilitation provision - (477)
Proceeds received from exploration and option
agreement
85 1,077
Exploration and evaluation expenditures (138) (1,619)
Net cash provided by investing activities 761 (2,048)
Financing activities
Proceeds from the sale of treasury shares - 1,140
2 -
Net cash provided by financing activities 2 1,140
Net Change in cash and cash equivalents (711) (2,176)
Net change in cash classified within assets held for
sale
(604) 547
Cash and cash equivalents, beginning of year 4,221 6,958
Cash and cash equivalents, end of year $ 2,906 $ 5,329
Operating activities
- continued operations (1,533) (1,087)
- discontinued operations 59 (181)
Investing activities
- continued operations 216 (1,682)
- discontinued operations 545 (366)
Financing activities
- continued operations 2 1,140