REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

09/09/2022 07:00

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RNS Number : 8511Y  Orosur Mining Inc  09 September 2022

 

 

 

Orosur Mining Inc - Colombia update

 

·    The Company's JV partner, Minera Monte Águila ("MMA"), has 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 Anzá Project (the
"Project")

 

·    The Company and MMA will begin the process of forming a new mining
company that will hold title to the Project's concessions and applications.

 

·    The Company has also been notified by MMA that in accordance with the
Exploration Agreement, it will enter Phase 2 following negotiation and
execution of a joint venture agreement (the "JVA").

 

·    The Company will initially have 49% ownership and MMA, 51% ownership
in the Mining Company, which will be managed by MMA.

 

London, September 9(th), 2022. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), is pleased to announce a key development at the Company's
flagship Anzá Project ("Project") in Colombia.

 

The Project is subject to an Exploration Agreement with Venture Option
("Exploration Agreement") with Colombian company Minera Monte Águila
("MMA").  MMA is itself a JV between Newmont Corporation ("Newmont") and
Agnico Eagle Mines Limited ("Agnico"), and is the Colombian entity by which
these two companies jointly exercise their rights and obligations with respect
to the Exploration Agreement over the Project.

 

Orosur is pleased to announce that further to the announcement of September
6(th) 2022, MMA has now provided the Company with a Phase 1 Earn-In Notice,
having completed all of the obligations under the Exploration Agreement,
including the investment of US$10 million in the Project. The Company has also
been informed by MMA that it will enter Phase 2 under the Exploration
Agreement, which will be governed by the JVA.

 

As set out in the Exploration Agreement, the Company and MMA will now begin
the process of forming a new mining company (the "Mining Company") that will
hold title to the Project's concessions and other mining interests.  Phase 2
will commence once the Mining Company is constituted and the JVA is signed.
The Company will initially have a 49% ownership interest in the Mining Company
and MMA the remaining 51%.  Once formed, the Mining Company will be managed
by MMA.

 

The formation of the Mining Company is expected to take several months to
finalise.  In the interim period, MMA will be able to continue exploration at
the Project, and any expenditures incurred by MMA in this interim period will
form part of the Phase 2 qualifying expenditures under the JVA. In recognition
of this continued exploration work, and provided that the parties continue to
work towards forming the Mining Company and finalising the JVA, MMA has
committed to making the Phase 2 payment of US$2 million to the Company no
later than early January 2023.

 

After the formation of the Mining Company and entering into the JVA, MMA may
earn an additional 14% ownership in the Mining Company by spending US$20
million in qualifying exploration expenditures on the Project over a maximum
period of four years. If the Phase 2 earn-in option is completed, MMA would
own 65% of the Mining Company and the Company would own the remaining 35%.

 

Orosur Executive Chairman Louis Castro commented:

 

"We are delighted to have reached this key stage in the Exploration Agreement.
Together with our partners we are starting to prepare for Phase 2 of the
Project, and we look forward to accelerated exploration activities during this
period"

 

 

For further information, visit www.orosur.ca (http://www.orosur.ca) , follow
on twitter @orosurm or 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/James Pope

Tel: +44 (0)20 3657 0050

 

Flagstaff Communications and Investor Communications

Tim Thompson

Mark Edwards

Fergus Mellon

orosur@flagstaffcomms.com

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: OMI; AIM: OMI) is a minerals explorer and developer
focused on identifying and advancing projects in South America. The Company
operates in Colombia, Argentina and Brazil.

 

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.

 

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.

 

The Anzá Project is subject to an Exploration Agreement with Venture Option
dated September 7th, 2018, as announced on September 10th, 2018, between
Orosur's 100% subsidiary Minera Anzá S.A ("Minera Anzá") and Minera Monte
Águila SAS ("Monte Águila"), a 50/50 joint venture between Newmont
Corporation ("Newmont") and Agnico Eagle Mines Limited ("Agnico").

 

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 Inc. and a
qualified person as defined by National Instrument 43-101.

 

 

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 Minera Monte Águila of those plans; Minera
Monte Águila´s decision to continue with Phase 2 of the option; the timing
for the formation of a new mining company or mining venture to hold the
project; the entering into of the JVA between the Company and MMA; the
possibility of further expenditures by MMA during the interim period; the
ability for Loryser to implement the Creditor´s Agreement successfully in
Uruguay 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.

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