Third Quarter Results for 2021/22
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Orosur Mining Inc.
Third Quarter Results for 2021/22
London, April 29th, 2022. Orosur Mining Inc. (“Orosur” or “the Company”) (TSX V/AIM: OMI), a South American -
focused minerals explorer and developer, is pleased to announce the results for the third quarter ended February 28th,
2022 (“Q3 22” 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 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/7831J_1-2022-4-28.pdf
A link to the PDF version of the MDA is available her:
http://www.rns-pdf.londonstockexchange.com/rns/7831J_2-2022-4-28.pdf
Highlights of the Third Quarter Results for 2021/22
Colombia
• Post the period end, on March 8th,2022, the Company reported the results of assays from four additional holes – MAP-
097, 098, 099, 100.The holes encountered high grade gold intersections – 6.06m @ 2.72g/t Au, 14.2m @ 1.84 g/t Au,
8.35m @ 14.27 g/t Au, and 59.15m @ 0.91 g/t Au and i ncluded a potential new area at depth in Anza. In addition , it
was reported that plans and permitting were being advance d for drilling new targets. That drilling activity has recently
commenced.
Brazil
• On January 14th, 2022 the Company announced that it had signed a Joint Venture (“JV”) agreement with Meridian
Mining UK Societas (“Meridian”) (TSXV: MNO) in relation to the Ariquemes tin project (“Project”) in the State of
Rondonia, western Brazil. The Project comprises a large collection of granted tenements and applications, totalling
almost 3,000km2. The licenses were all accumulated and are wholly owned by Meridian’s local subsidiary and represent
the dominant land position in the Rondônia Tin Province, one of the world’s most significant tin regions. Under the JV
terms, the Company can earn an equity interest of 75% in the Project by spending US$3m over a four -year period, in
two phases: Phase 1 - earn 51% interest by spending US$1 million over a 24 -month period ; Phase 2 - earn an
additional 24% interest by spending US$2 million over a subsequent 24 -month period. Following completion of Phase
2, it is intended the two parties will either jointly fund the Project on a pro-rata basis or dilute to a net smelter royalty.
Argentina
• On February 15th, 2022 the Company announced that it had signed a JV agreement (“Agreement”) with a private
Argentinean company DESEADO DORADO S.A.S and its shareholders (“Deseado”) in relation to the El Pantano
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Gold/Silver Project in the Province of Santa Cruz in Argentina (“ Gold/Siver Project”).The Agreement covers nine
licences owned by Deseado that, combined, total 607km2 in the prolific Deseado Massif region of Santa Cruz Province
in southern Argentina, roughly 45km from Anglo Gold’s Cerro Vanguardia mining camp. The terms of the Agreement
allow for the Company to earn 100% equity in the Gold/Silver Project by investing US$3m over five years in two phases:
Phase 1 - earn 51% by investing US$1m over an initial 3-year period; Phase 2,- move to 100% ownership by investing
an additional US$2m over a subsequent 2 -year period and granting Deseado a residual 2% net smelter return royal ty
on the Gold/Silver Project.
Post the period end, the Company announced that its geological teams mobilised to Santa Cruz Province, Argentina, to
commence the Company’s first field exploration program at the El Pantano Gold/Silver Project . This field program lasted
approximately two weeks and involved extensive mapping and surface sampling (soils and rock chip) programs over the
two most attractive prospects. Results are currently awaited.
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 is also continuing with the reclamation and
remediation of the tailings dam which is nearing completion
• 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 that 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 is being applied to meet Loryser’s obligations under the 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 Profi t and Loss from discontinuing operations. This accounting
treatment has been applied to the activities in Uruguay and Chile.
• On February 28, 2022, the Company had a cash balance of $4,791 k (May 31, 2021 $6,958 k). As at the date of this
MD&A, the Company had a cash balance of $4,478k.
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
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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, Argentina 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 limite d 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. Fo rward-
looking statements include, without limitation, th e 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 cont inue 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 continu ance
as a going concern is dependen t 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 u pon 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 “Risk s Factors” of
the Company’s 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, exc ept to the
extent required by applicable law
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Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
Unaudited
As at
As at
February 28,
2022
May 31,
2021
ASSETS
Current assets
Cash and cash equivalents
$ 4,791
$ 6,958
Restricted cash 137 1,367
Accounts receivable and other assets 174 201
Assets held for sale in Uruguay 593 2,314
Total current assets 5,395 10,840
Non-current assets
Property, plant and equipment
113
124
Exploration and evaluation assets Colombia 5,351 5,148
Total assets $ 11,159 $ 16,112
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities
$ 296
$ 486
Liabilities of Chile discontinued operation 2,060 2,047
Warrant liability 433 1,734
Liabilities held for sale in Uruguay 13,487 16,830
Total current liabilities 16,276 21,097
Deficit
Share capital
69,333
69,333
Shares held by Trust (72) (165)
Contributed surplus 9,491 8,591
Currency translation reserve (2,159) (1,826)
Deficit (81,710) (80,918)
Total deficit (5,117) (4,985)
Total liabilities and deficit $ 11,159 $ 16,112
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Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in thousands of United States dollars)
Unaudited
Three Months
Ended
February 28,
Three Months
Ended
February 28,
Nine Months
Ended
February 28,
Nine Months
Ended
February 28,,
2022 2021 2022 2021
Operating expenses
Corporate and administrative expenses $ (444)
$ (377)
$ (1,329)
$ (910)
Exploration expenses (26) (10) (36) (39)
Share-based compensation 41 (859) (274) (867)
Other income - 9 2 20
Net finance cost (3) (3) (6) (6)
Gain on fair value of warrants 428 (61) 1,301 (61)
Net foreign exchange gain (33) 135 (135) 152
Net (loss) for the period for continued operations $ (37) $ (1,166) $ (477) $ (1.711)
Other comprehensive income (loss):
Cumulative translation adjustment $ (139) $ (24) $ (333) $ 133
Total comprehensive (loss) for the period
from continued operations
(176)
(1,190)
(810)
(1,578)
Income (loss) income from discontinued
operations (329) (70) (315) (1,549)
Total comprehensive income (loss) for the period (505) (1,260) (1,125) (3,127)
Basic and diluted net (loss) income per share for
continued operations
$ (0.00)
$ (0.01)
$ (0.00)
$ (0.01)
Basic and diluted net (loss) income per share for
discontinued operations
$
0.00
$
(0.00)
$
0.00
$
(0.01)
Weighted average number of common shares
outstanding
188,420
185,392
188,420
168,917
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(Expressed in thousands of United States dollars)
Unaudited
Nine Months Nine Months
Ended Ended
February 28, February 28,,
2022 2021
Operating activities
Net (loss) for the period for continued and discontinued
operations
$ (792) $ (3,260)
Adjustments for:
Share-based compensation 274 867
Labor provision adjustments (1,600) -
Obsolescence provision (1,100) (100)
Fair value of warrants (1,301) 61
Gain on sale of property, plant and equipment (230) (400)
Foreign exchange and other (56) 1,472
Changes in non-cash working capital items:
Accounts receivable and other assets 51 (14)
Inventories 1,504 1,356
Accounts payable and accrued liabilities 920 (791)
Net cash used in operating activities (2,218) (809)
Investing activities
Increase in the restricted cash (719) -
Proceeds received for sale of property, plant and equipment 746 461
Environmental tasks (1,100) (61)
Proceeds received from exploration and option agreement 1,266 2,893
Exploration and evaluation expenditures (1,630) (1,540)
Net cash (used in) provided by investing activities (1,437) 1,753
Financing activities
Issue of common shares - 4,978
Proceeds from the sale of treasury shares 719
Proceeds from exercise of options 437
Proceeds from exercise of options - 282
Net cash provided by financing activities 719 5,687
Net Change in cash and cash equivalents (2,936) 6,641
Net change in cash classified within assets held for sale 769 (417)
Cash and cash equivalents, beginning of period 6,958 782
Cash and cash equivalents, end of period $ 4,791 $ 7,006
Operating activities
- continued operations (1,803) (765)
- discontinued operations (415) (44)
Investing activities
- continued operations (1,083) 1,292
- discontinued operations (354) 461
Financing activities
- continued operations 719 5,697