Third Quarter Results for 2022/23
CORPORATE
Orosur Mining Inc
Third Quarter Results for 2022/23
London, April 27th, 2023. Orosur Mining Inc. ("Orosur" or "the Company") (TSXV/AIM: OMI), a
South American-focused minerals explorer and developer, is pleased to announce the results for
the third quarter ended February 28th, 2023 ("Q3 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 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 Third Quarter Results for 2022/23
Colombia
On December 2, 2022, the Company announced assay results from another four 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 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 January 17, 2023, the Company announced that negotiations to complete the new
Mining Company Constituent Documents with Minera Monte Aguila ("MMA") were
progressing and that the US$2 million Phase 2 payment would 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 MMA 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 Anzá
Project ("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%.
On March 2, 2023, post the Quarter end, the Company announced that it had received
the Phase 2 option payment of US$2 million that was due as part of the process of MMA
moving from Phase 1 to Phase 2 of the Project. Following completion of drilling,
exploration work at Anzá has been wound back to allow for the required corporate
restructuring of the joint venture to be completed, and to advance a variety of licence
processes such as integration of smaller licences and conversion of applications to
granted status.
CORPORATE
Argentina
On March 2, 2023, the Company announced that results to date continue to be extremely
encouraging, with the latest round of mapping and sampling suggestive that El Pantano
has potential to host a major, previously unexplored low-sulphidation epithermal system.
In the low-sulphidation model, fluid boiling is the key gold depositional mechanism, such
that gold mineralisation is constrained to a distinct vertical zone, and there may be limited
or no gold anomalism at surface. Instead, pathfinder elements are a more important guide
to mineralisation, especially mercury (Hg) and arsenic (As). Recent work is expanding the
picture of very large zones of Hg and As anomalism along more than 8km strike of a major
NW trending structure.
Geological mapping, geochemical sampling and ground magnetic surveys are
continuing. It is also planned that other geophysical methods such as Induced
Polarization (IP) may be employed. Environmental permitting work is also underway that
will allow drilling to be undertaken later in the year or early next year.
Brazil
On March 2, 2023, the Company announced that its large-scale regional sampling
program which had been underway for the last several months, taking stream and
drainage sediment samples over much of the Ariquemes district, was now complete. Final
results are pending. Once received, it is anticipated that this regional dataset will be able
to provide vectors to potential mineralisation that will then form the basis for more targeted
exploration programs in the near term.
Uruguay
In the previous accounting 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. In the
current year to date it has finalised the reclamation and remediation works on the tailings
dam and has started a one-year post-closure control phase which is progressing well.
During this Quarter, Loryser also succeeded in selling all of its remaining assets included
in the Creditors Agreement as set out in that agreement and it will now, post Quarter end,
be distributing the proceeds, on a pro rata basis, to Loryser's trade creditors in accordance
with the Creditors' Agreement, via a court approved paying agent.
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.
CORPORATE
On December 7, 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 MD&A is 199,750,299.
On February 28, 2023, the Company had a cash balance of $4,151k (May 31, 2022
$4,221k). As at the date of this announcement the Company had a cash balance of
$3,857k.
Condensed Interim Consolidated Statements of Financial
Position (Expressed in thousands of United States
dollars)
Unaudited
As at
As at
February 28,
2023
May 31,
2022
ASSETS
Current assets
Cash and cash equivalents
$ 4,151
$ 4,221
Restricted cash 10 353
Accounts receivable and other assets 155 186
Assets held for sale in Uruguay 2,407 1,160
Total current assets 6,723 5,920
Non-current assets
Property, plant and equipment
90
113
Exploration and evaluation assets Colombia 2,630 5,441
Total assets $ 9,443 $ 11,474
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities
$ 316
$ 389
Liabilities of Chile discontinued operation 2,135 2,058
Warrant liability - 168
Liabilities held for sale in Uruguay 12,426 13,134
Total current liabilities 14,877 15,749
Deficit
Share capital
69,341
69,339
Contributed surplus 10,539 10,540
Currency translation reserve (3,060) (2,125)
Deficit (82,255) (82,029)
Total deficit (5,434) (4,275)
Total liabilities and deficit $ 9,443 $ 11,474
CORPORATE
Condensed Interim Consolidated Statements of Loss and Comprehensive
Loss (Expressed in thousands of United States dollars)
Unaudited
Three
Mon
ths
End
ed
February
28,
Three
Months
Ended
February 28,
Six Months
Ended
February
28,
Six
Months
Ended
February
28,
2023 202
2
2023 2022
Operating expenses
Corporate and administrative
expenses $ (473)
$ (444)
$ (1,316
)
$ (1326
)
Exploration
expenses (296)
(26) (543) (36)
Share-based
compensation -
(41) - (274)
Other
income 7
- 15 2
Net finance
cost (2)
(3) (7) (6)
Gain on fair value of
warrants -
428 168 1,301
Foreign exchange (loss) gain
net (54)
(33) (106) (135
)
Net (loss) for the period for continued operations
$ (818)
Other comprehensive (loss) income:
Cumulative translation
adjustment $ 1
$ (37)
$ (139)
$ (1,789
)
$ (934
)
$ (477)
$ (333
)
Total comprehensive (loss) for the
period from continued operations
(817)
(176)
(2,723)
(810)
Income (loss) from discontinued operations
513
(373)
1,56
3
(315)
Total comprehensive (loss) for the period (304) (549) (1,160) (1,215)
Basic and diluted net (loss) per share for
continued operations
$ (0.00)
$ (0.00)
$ (0.01
)
$ (0.00
)
Basic and diluted net (loss) income per
share for discontinued operations
$
0.00
$
(0,00)
$
0.01
$
(0.00)
Weighted average number of common
shares outstanding
188,560
188,420
188,544
188,420
CORPORATE
Consolidated Statements of Cash Flows
(Expressed in thousands of United States
dollars)
Nine Months
Ended
Nine Months
Ended
February 28,
2022
February 28,
2021
Operating activities
Net loss for the year for continued and discontinued operations $ (226) $ (792)
Adjustments for:
Share-based payments - 274
Labour provision adjustments - (1,600)
Obsolescence provision (3,103) (1,100)
Fair value of warrants (168) (1,301)
Accretion of asset retirement obligation (817) -
Gain on sale of property, plant and equipment (1,396) (230)
Foreign exchange and other 68 56
Changes in non-cash working capital items:
Accounts receivable and other assets (106) 51
Inventories 3,415 1,504
Accounts payable and accrued liabilities 93 920
Net cash used in operating activities (2,240) (2,218)
Investing activities
Increase (decrease) in the restricted cash 343 (719)
Proceeds received for sale of property, plant and equipment 945 746
Purchase of property, plant and equipment (1) -
Environmental rehabilitation provision - (1,100)
Proceeds received from exploration and option agreement 2,085 1,266
Exploration and evaluation expenditures (191) (1,630)
Net cash provided by investing activities 3,181 (1,437)
Financing activities
Proceeds from the sale of treasury shares - 719
Proceeds from sale of options 2 -
Net cash provided by financing activities 2 719
Net Change in cash and cash equivalents 943 (2,936)
Net change in cash classified within assets held for sale (1,013) 769
Cash and cash equivalents, beginning of year 4,221 6,958
Cash and cash equivalents, end of year $ 4,151 $ 4,791
Operating activities
- continued operations (2,308) (1,803)
- discontinued operations 68 (415)
Investing activities
- continued operations 2,236 (1,083)
- discontinued operations 945 (354)
Financing activities
- continued operations 2 719
CORPORATE
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 / Kasia Brzozowska
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 considered to be in the public domain.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this
release.
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 has discontinued operations in Uruguay.
About the Anzá Project
Anzá is a gold exploration project, comprising three exploration licences, four exploration licence
applications, and several small exploitation permits, totalling 207.5km2 in the prolific Mid-Cauca
belt of Colombia.
CORPORATE
The Anzá Project is currently wholly owned by Orosur via its subsidiary, Minera Anzá S.A.
The project is located 50km west of Medellin and is easily accessible by all-weather roads and
boasts excellent infrastructure including water, power, communications and large exploration
camp.
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 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.