REG - Orosur Mining Inc - Full Year 2022 Results
29/09/2022 07:00
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RNS Number : 0781B Orosur Mining Inc 29 September 2022
Orosur Mining Inc. - Full Year 2022 Results
London, September 29th, 2022. Orosur Mining Inc. ("Orosur" or "the Company")
(TSX-V: OMI) (AIM: OMI) announces its audited results for the fiscal year
ended May 31, 2022. All dollar figures are stated in thousands of US$ unless
otherwise noted. The audited financial statements of the Company for the year
ended May 31, 2022; the related management's discussion and analysis
("MD&A"); and Forms 52-109FV1 have all been filed and are available for
review on the SEDAR website at www.sedar.com (http://www.sedar.com) . The
financial statements and the MD&A are also available on the Company's
website at www.orosur.ca (http://www.orosur.ca) .
A link to the PDF version of the financial statements is available here:
http://www.rns-pdf.londonstockexchange.com/rns/0781B_1-2022-9-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0781B_1-2022-9-28.pdf)
A link to the PDF version of the MD&A is available here:
http://www.rns-pdf.londonstockexchange.com/rns/0781B_2-2022-9-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0781B_2-2022-9-28.pdf)
HIGHLIGHTS
Colombia
· On July 6, 2021, the Company announced the assay results from
nine additional diamond drillholes including multiple high-grade gold
intersections with associated silver and zinc - including 59.55m @9.16g/t Au
and 61.75m @2.05g/t Au.
· Also as set out in the above mentioned news release, work
commenced on regional mapping and sampling across the wider lease holding in
Colombia. A large program of BLEG sampling commenced, which should provide
vectors to more targeted programs in following quarters. Initial results have
been promising, with two new prospect areas identified and named Pepas and
Pupino for future reference..
· On November 9, 2021, the Company announced drill results from
five additional diamond drill holes, MAP-092 to MAP-096. The most
significant result was 51.55m @ 1.32g/t Au in hole MAP-096.
· The Company commenced work on converting the last of its secure
license applications to granted status so that they can be accessed for
exploration work later in 2022.
· As announced on September 7, 2021, the Company was informed by
its Colombian Joint Venture ("JV") partner, Minera Monte Águila SAS ("Monte
Águila") that it had elected to exercise its right to assume operatorship of
the Anzá Project in Colombia. Monte Águila is a 50/50 JV between Newmont
Corporation ("Newmont") (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited
("Agnico") (TSX:AEM), and is the vehicle by which these two companies jointly
exercise their rights and obligations with respect to the Exploration
Agreement with Venture Option ("Exploration Agreement") over the Anzá
Project.
· On November 9, 2021, assay results from an additional five holes
were announced. Thick anomalous zones of mineralisation were intersected
including gold, silver and zinc. More mapping and sampling was also being
carried out at Pepas and Pupino in anticipation of future drilling.
· On March 8, 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 including a potential new area at
depth in Anza. In addition it was reported that plans and permitting were
being advanced for drilling new targets at Pepas and Pupino, which have been
drilled post the year end - further details set out below.
· On April 25, 2022, it was announced that drilling had commenced
at Pepas. Since October 2020, when drilling recommenced at the central APTA
area, a total 15,195 metres had been drilled. Two more drills were being
imported to test deeper zones, including at APTA, Pepas and Pupino.
· Subsequent to the year end, on June 27, 2022, assay results from
five additional holes in APTA were announced. Reasonable grades of gold were
intercepted in two of the holes and the other holes showed lower levels of
gold but high-grade copper and zinc evident at depth. As planned, drilling
focus was then shifted to Pepas and Pupino.
· On September 6, 2022, after the year end, the Company announced
assay results from the Pepas prospect to the north of Anza, including assay
results from PEP001 which returned a substantial, high-grade intersection of
150.9m @ 3.00g/t Au (from surface). Also announced on that day, that Monte
Aguila had informed the Company that it had met its expenditure of US$4m for
the year.
· On September 8, 2022, the Company's JV partner, Monte Águila
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 Company and Monte Aguila will begin the process of forming a new
mining company ("Mining Company") that will hold title to the Anzá Project's
concessions and applications. The Company was also notified by Monte Aguila
that in accordance with the Exploration Agreement, it will enter Phase 2
following negotiation and execution of a joint venture agreement to govern the
operations of the Mining Company. Once the Mining Company is formed, which is
expected to take several months, Orour will initially have 49% ownership and
Monte Aguila, 51% ownership in the Mining Company, which will be managed by
Monte Aguila.
Brazil
· On January 14, 2022,. the Company announced that it had signed a
JV agreement with Meridian Mining UK Societas ("Meridian") (TSXV: MNO) in
relation to the Ariquemes tin project in the State of Rondonia in western
Brazil. 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. Under
the JV terms, the Company can earn an equity interest of 75% in the tin
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 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 a new corporate structure to hold and manage the
assets. Post period end, the required Canadian holding company was
incorporated. This will be followed by the incorporation of the necessary
local Brazilian operating company.
Argentina
· On February 15, 2022, the Company announced that it had signed a
JV agreement with private Argentinean company Deseado Dorado SAS and its
shareholders ("Deseado") in relation to the El Pantano Gold/Silver Project in
the Province of Santa Cruz in Argentina.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 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 royalty on the project.
· On May 3, 2022, the Company announced positive results from the
first soil sampling program at the Esfinge prospect at El Pantano, returning
highly anomalous results in gold and several other pathfinder elements, over a
3.3km strike length, including gold results in excess of 100 ppb Au from soil
samples from the western half of La Esfinge; and more moderate level anomalism
over an additional 3.4km of the target. As a result of these positive results
a short in-fill program would be carried out.
· As a follow on from the above, on June 28, 2022, the Company
announced further positive results from the in-fill program, confirming
previous work and results. High levels of gold soil anomalies, over 1 km,
including 150 ppb, plus pathfinder elements over a wider area are suggestive
of a major epithermal system. This work has defined a high priority target to
be followed up in after the winter recess.
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.
· During the course of the 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.
· Certain progress is being made on the sale of Loryser's other
assets including plant and equipment. The proceeds from all of these sales
will be used to pay liabilities in Uruguay in connection with the
aforementioned Creditors Agreement.
Financial and Corporate
· The 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.
· On October 15, 2022, the Company announced that it had received
approval to transfer its listing from the TSX to the TSX Venture Exchange. The
Company believes that the transfer will provide it with operational
efficiencies, with lower costs and with a reporting regime which is closer to
that of the AIM market, whilst allowing shareholders to have continued trading
liquidity in Canada.
· On March 11, 2022, the Company granted an aggregate of 4,120,000
stock options, of which 2,400,00 were granted to the Directors of the Company,
at an exercise price of CDN$0.22 (a premium of 22% to the then share price)
with an expiration date of March 11(th), 2027. The options vested 50%
immediately and 50% on March 11, 2023.
· On May 31, 2022, the Company had a cash balance of $4,221 (May
31, 2021 $6,958). As at the date of this announcement the Company had a cash
balance of $3,390.
Louis Castro, Executive Chairman of Orosur said:
"Our principal project at Anza in Colombia continues to be a major success
story, with strong results, in particular from the new area of Pepas, with
more prospects to be drilled in the coming year.
The handing over of operational control at Anza in late 2021, and a strong
balance sheet, have freed up our skilled South American team to examine
investment in new projects. The addition of our Ariquemes tin project in
Brazil, and of the El Pantano gold/silver project in Argentina have
transformed the Company into a well-balanced minerals exploration company.
The Company will continue to build its project portfolio with other
high-quality assets."
Consolidated Statements of Financial Position (Expressed in thousands of
United States dollars)
As at As at
May 31, May 31,
2022 2021
ASSETS
Current assets
Cash and cash equivalents $ 4,221 $ 6,958
Restricted cash 353 1,367
Accounts receivable and other assets 186 201
Assets held for sale in Uruguay 1,160 2,314
Total current assets 5,920 10,840
Non-current assets
Property, plant and equipment 113 124
Exploration and evaluation assets Colombia 5,441 5,148
Total assets $ 11,474 $ 16,112
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 389 $ 486
Liabilities of Chile discontinued operation 2,058 2,047
Warrant liability 168 1,734
Liabilities held for sale in Uruguay 13,134 16,830
Total current liabilities 15,749 21,097
Deficit
Share capital 69,339 69,333
Shares held by Trust - (165)
Contributed surplus 10,540 8,591
Currency translation reserve (2,125) (1,826)
Deficit (82,029) (80,918)
Total deficit (4,275) (4,985)
Total liabilities and deficit $ 11,474 $ 16,112
Consolidated Statements of Loss and Comprehensive Loss (Expressed in thousands
of United States dollars)
Year Ended Year Ended
May 31, May 31,
2022 2021
Operating expenses
Corporate and administrative expenses $ (1,792) $ (1,206)
Exploration expenses (143) (29)
Share-based compensation (887) (1,048)
Other income 23 21
Net finance cost (19) (187)
Gain on fair value of warrants 1,566 627
Foreign exchange (loss) gain net (193) 110
Net (loss) for the year for continued operations $ (1,445) $ (1,712)
Other comprehensive (loss) income:
Cumulative translation adjustment $ (299) $ 190
Total comprehensive (loss) for the year from continued operations
(1,744) (1,522)
Income (loss) from discontinued operations 334 (171)
Total comprehensive (loss) for the year (1,410) (1,693)
Basic and diluted net (loss) per share for continued operations $ (0.01) $ (0.01)
Basic and diluted net income (loss) per share for discontinued operations
$ 0.00 $ (0.00)
Weighted average number of common shares 188,432 173,825
outstanding
Consolidated Statements of Cash Flows (Expressed in thousands of United States
dollars)
Year Ended Year Ended
May 31, May 31,
2022 2021
Operating activities
Net loss for the year for continued and discontinued operations $ (1,111) $ (1,883)
Adjustments for:
Depreciation / Write downs (121) 356
Share-based payments 887 1,048
Payments for environmental rehabilitation (705) (708)
Labor provision adjustments (1,177) (1,472)
Obsolescence provision (1,240) 443
Fair value of warrants (1,566) (627)
Accretion of asset retirement obligation (140) 4
Gain on sale of property, plant and equipment (462) (379)
Foreign exchange and other 335 440
Changes in non-cash working capital items:
Accounts receivable and other assets 30 73
Inventories 1,723 247
Accounts payable and accrued liabilities (2,203) 480
Net cash used in operating activities (5,750) (1,978)
Investing activities
Increase (decrease) in the restricted cash 1,014 (1,367)
Proceeds received for sale of property, plant and equipment 462 758
Purchase of property, plant and equipment (3) (59)
Proceeds received from exploration and option agreement 1,365 4,659
Exploration and evaluation expenditures (1,780) (3,087)
Net cash provided by investing activities 1,058 904
Financing activities
Issue of common shares - 5,154
Proceeds from the sale of treasury shares 1,228 1,879
Proceeds from exercise of options 4 455
Proceeds from exercise of warrants - 308
Net cash provided by financing activities 1,232 7,796
Net Change in cash and cash equivalents (3,460) 6,722
Net change in cash classified within assets held for sale 723 (546)
Cash and cash equivalents, beginning of year 6,958 782
Cash and cash equivalents, end of year $ 4,221 $ 6,958
Operating activities
- continued operations (4,565) (1,766)
- discontinued operations (1,185) (212)
Investing activities
- continued operations 596 146
- discontinued operations 462 758
Financing activities
- continued operations 1,232 7,796
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 & 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
Tim Thompson
Mark Edwards
Fergus Mellon
orosur@flagstaffcomms.com (mailto: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
currently operates in Colombia, Brazil and Argentina and has discontinued
operations in 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 Minera Monte Águila of those plans, Minera
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 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 MD&A 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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