REG - Orosur Mining Inc - Brazil Update

Orosur MiningAnnouncement

14/01/2022 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20220114:nRSN4116Ya&default-theme=true

RNS Number : 4116Y  Orosur Mining Inc  14 January 2022

 

 

 

 

Orosur Mining Inc. - Brazil Update

 

·    JV signed with Meridian Mining on Ariquemes Tin Project in Brazil

·    Company to earn 75% equity interest by investing US$3m over four
years.

 

London, January 14(th), 2022. Orosur Mining Inc. ("Orosur" or the "Company")
(TSX-V/AIM:OMI), is pleased to announce that it has signed a Joint Venture
(JV) agreement with Meridian Mining UK Societas (TSXV: MNO) (Frankfurt: 2MM)
(Tradegate: 2MM) (OTCQB: MRRDF) ("Meridian") in relation to the Ariquemes tin
project ("Project") in Brazil.

 

The JV terms are largely in line with those indicated in the Letter of Intent
("LOI") signed and announced on July 7(th) 2021, in which the Company can earn
an equity interest of 75% in the Ariquemes project by spending US$3m over a
four-year period, in two phases:

 

1.   Phase 1 - earn 51% interest by spending US$1 million over a 24-month
period.

2.   Phase 2 - earn an additional 24% interest by spending US$2 million over
a subsequent 24-month period.

3.   Following this point, the two parties would jointly fund the Project on
a pro-rata basis or dilute to a net smelter royalty.

 

The JV will require the establishment of two new corporate entities to hold
the exploration licences and applications, which will include a top holding
company in Canada, and a local operating company in Brazil.  This process
will commence immediately but may take several months to complete, at which
time the granted licences will begin to be transferred across to the new
structure and the JV can formally commence.

 

In the meantime, the Company will immediately commence desktop exploration
work, data compilation, regional targeting, formulation of exploration plans
and budgets and logistical planning.  Members of the Company's board,
executive and technical specialists will be on site in the coming days to
commence the process.

 

Further details of the Project and plans will be communicated following this
visit.

 

Ariquemes

The Ariquemes project comprises a large collection of granted tenements and
applications, totalling almost 3,000km(2), in Rondônia State, western
Brazil.  The licenses were all accumulated and owned 100% by Meridian (via
its local subsidiary) and represent the dominant land position in the
Rondônia Tin Province, one of the world's most significant tin regions.

 

The region was identified by Meridian following extensive conceptual work,
with later regional work confirming the Project's potential.   An extensive
database of historical and recent exploration data is available and has been
reviewed by the Company.

 

The Company has approximately US$5 million cash on its balance sheet and is
therefore well placed to fund the initial works from its existing resources.

 

Orosur CEO Brad George commented:

"We are excited to have finally completed this agreement.  With Anza handed
over and Covid finally abating, the ability to move to a new phase of work for
the Company is something we have been anticipating for some time.

 

"Ariquemes represents a tremendous opportunity with a huge land holding in a
proven district, for one of the sector's most important, and yet overlooked
commodities."

 

 

For further information, please contact:

 

Orosur Mining Inc

Louis Castro, Chairman,

Brad George, CEO

info@orosur.ca

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

orosur@flagstaffcomms.com (mailto:orosur@flagstaffcomms.com)

 

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 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 the funding from Monte Águila of those plans, Monte
Águila´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 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDBJMPTMTBBBBT