REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

17/01/2023 07:00

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RNS Number : 8949M  Orosur Mining Inc  17 January 2023

 

 

 

Orosur Mining Inc - Colombia update

 

·    Negotiations to complete the Mining Company Constituent Documents
with Minera Monte Aguila are progressing.

 

·    US$2 million Phase 2 Payment to be paid soon.

 

·    Process of forming new JV company underway.

 

·    Once formed, the JV company will be owned 49% by Orosur and 51% by
Minera Monte Aguila.

 

London, Tuesday 17(th) January, 2023. Orosur Mining Inc. ("Orosur" or the
"Company") (TSXV/AIM:OMI), is pleased to provide an update to progress 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 joint venture 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 the Company and MMA are advancing
negotiations of a joint venture agreement (the "Mining Company Constituent
Documents") that would govern the development and operations of the Project.
The joint venture will operate under a new Colombia legal entity (the "Mining
Company") that would hold the Project mining concessions and applications,
with MMA as manager.  The process to create the Mining Company has now
commenced and is expected to take several months to complete. During this
process, MMA will be able to continue exploration at the Project, and any
expenditures incurred by MMA during this interim period will form part of the
Phase 2 qualifying expenditures.

 

In the meantime, MMA has agreed to pay the US$2 million Phase 2 Payment
contemplated by the Exploration Agreement to Orosur, in advance of finalising
the Mining Company Constituent Documents.  Funds are expected to be received
from MMA soon.

 

After the formation of the Mining Company and entering into the Mining Company
Constituent Documents, as per the Phase 2 earn-in provisions, 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%.

 

Orosur Executive Chairman Louis Castro commented:

 

"We are pleased that MMA will be advancing to Phase 2 of the Project and that
the US$2 million will be paid soon. Both actions support the Company's
continued belief in the strength and potential of the Project".

 

 

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 / 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 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. (TSXV / 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 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.

 

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 the funding from Minera Monte Águila of those plans; Minera
Monte Águila´s continued involvement in the Anza Project; 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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