REG - Orosur Mining Inc - Full Year 2023 Results
29/09/2023 07:00
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RNS Number : 1462O Orosur Mining Inc 29 September 2023
Orosur Mining Inc. - Full Year 2023 Results
London, September 29th, 2023. Orosur Mining Inc. ("Orosur" or "the Company")
(TSX-V: OMI) (AIM: OMI) announces its audited results for the fiscal year
ended May 31, 2023. 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, 2023; the related management's discussion and analysis
("MD&A"); and Forms 52-109FV1 will be filed today and be available for
review on the SEDAR+ website at www.sedarplus.ca. 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/1462O_1-2023-9-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1462O_1-2023-9-29.pdf)
A link to the PDF version of the MD&A is available here:
http://www.rns-pdf.londonstockexchange.com/rns/1462O_2-2023-9-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1462O_2-2023-9-29.pdf)
HIGHLIGHTS
Colombia
· 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, the Company announced assay results from
the Pepas prospect to the north of Anzá, 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 9, 2022, the Company announced that its 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.
· On October 21,2022, the Company announced assay results from four
additional diamond drill holes at Pepas and Pupino. Both the Pepas and Pupino
prospects are located in the northern region of the Anzá Prospect, roughly
12km and 8km respectively north northeast from the central APTA prospect that
had seen most drilling at Anzá up until early 2022. At PEPAS, holes PEP005
and PEP007 were drilled from the same pad as PEP001 but in different
directions. Both holes returned substantial gold intersections, with the best
at PEP007 being 80.55m @ 3.05g/t Au from surface (including 41.75m @ 5.24g/t).
· 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 Monte Aguila were
progressing and that the US$2 million Phase 2 payment, now received, 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 Monte Aguila who will also be the manager. Monte Aguila
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, Monte
Agulia 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 Monte Aguila moving from Phase 1 to Phase 2 of the
Anzá 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.
· On May 4, 2023 Monte Aguila advised the Company that it had
reduced exploration expenditures on the Project and effectively placed it in
care and maintenance. The Company expects that Monte Aguila will continue to
focus on protecting the asset and maintaining positive relationships with
local community groups while it explores options regarding its involvement in
the Project. The Company has great faith in the prospectivity of the Anzá
Project and stands ready and able to reassume operatorship of Anzá if that is
deemed a viable option.
Argentina
· The El Pantano Project is subject to an Exploration & Joint
Venture agreement ("Agreement") with private Argentinean company DESEADO
DORADO S.A.S and its shareholders ("Deseado").The Agreement covers nine
licences owned by Deseado that, combined, total 607km(2) in the prolific
Deseado Massif region of Santa Cruz Province in southern Argentina, roughly
45km from Anglo Gold's Cerro Vanguardia mining camp. The Agreement involves
the Company securing its initial position through direct 100% ownership of
Deseado Dorado S.A.S. The terms of the Agreement then allow the Company to
retain 100% equity in the Project by investing US$3m over five years in two
phases: Phase 1, retaining 51% by investing US$1m over an initial 3-year
period. Phase 2, retaining the additional 49% 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 June 28, 2022, the Company announced further positive results
from the in-fill program at the Company's El Pantano Project in Argentina,
confirming previous work and results. High levels of gold soil anomalies, over
1km, including 150 ppb, plus pathfinder elements over a wider area are
suggestive of a major epithermal system. This work defined a high priority
target to be followed up after the winter break.
· 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.
· On May 4, 2023 the Company announced that Mapping and ground
magnetic surveys at El Pantano have identified a major NW-SE structural
corridor over 20km long and 5km wide, with large areas of silicification,
alteration and geochemical anomalism over large areas. Gold anomalism in soils
is evident in the NW end of the main structure, suggesting this area is
somewhat lower in the epithermal system, while the SE end shows significant Hg
and As anomalism, suggesting a higher level. Mapping to the north of the
main structure has so far identified over 70 quartz veins over an area in
excess of 20km(2), with textures indicative of cooler temperatures, fully
consistent with the model of a very large low-sulphidation epithermal system.
Mapping of this vein field continues with more being identified on a daily
basis. As noted, mapping, sampling and magnetic surveying will continue until
roughly mid-May 2023 before the winter closure, with final assay results and
magnetic survey data expected in the next few weeks. Upon receipt of all data,
a detailed process of compilation and interpretation will be undertaken to
better understand the mineral system and to plan work programs for after the
winter recess in September 2023. The required environmental permit process for
drilling will also commence in May 2023 such that drilling will then be able
to be undertaken later in 2023 should appropriate targets be identified.
Brazil
· The Company has a Joint Venture ("JV") agreement with Meridian
Mining UK Societas ("Meridian") (TSXV: MNO) in relation to the Ariquemes tin
project ("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 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.
· 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 were 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.
· On May 4, 2023 results from the Company's reconnaissance program,
described above, demonstrated widespread tin, niobium and rare earth anomalies
across the wider area, with most tin interest focussed on the southern portion
and a lease package to the far east of the area.
· In general, tin and niobium are often found and exploited
together given they derive from the same source rocks. The metals are roughly
similar in pricing structure and as such the Company will examine commercial
opportunities in both. The areas of metal anomalism that have been
identified, will be followed up by more direct, quantitative exploration
methods in the coming months. These will include detailed mapping, soil and
rock chip sampling and auger drilling of metal bearing drainages. For
efficiency, this work will be done by the Company's exploration teams during
the winter recess in Argentina.
· On July 5, 2023 the Company announced that given the success of
the regional stream sediment program the Company has now decided to move to
the next phase which has targeted two prospects at Oriente Novo (in the east
of the Company's tenements) and at Paraiso in the west and to the north of the
Bom Futuro tin mine. Sampling and assaying work will take place over the
coming weeks at both locations with assays returning from the lab during
September/October.
Uruguay
· In Uruguay, the Company's wholly owned subsidiary, Loryser,
continued to focus its activities on the implementation of the Creditors
Agreement.
· 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. This year it has finalised the reclamation
and remediation works on the tailings dam and it started a one-year
post-closure control phase which is nearly over.
· During the quarter ended February 28, 2023 Loryser also succeeded
in selling all of its remaining assets in accordance with the Creditors
Agreement.
· Loryser is well advanced in distributing the proceeds 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 discontinued operations. This accounting treatment has
been applied to the activities in Uruguay and Chile.
· On December 7, 2022, all of the outstanding 10,897,058 warrants
expired. The fully diluted share capital of the Company as at the date of this
MD&A is 199,750,299.
· On May 23, 2023 the Company announced that it had appointed Baker
Tilly WM LLP as the Company's auditors at the recommendation of its audit
committee.
· On May 31, 2023, the Company had a cash balance of $3,748 (May
31, 2022 $4,221). As at the date of this MD&A the Company had a cash
balance of $2,874.
· The Company has appointed Mr. González as the Company's CFO.
Mr. Omar González replaces Mr. Vic Hugo who is retiring from Marrelli
Support Services (Marrelli), which has been providing CFO services to Orosur
since February 2019. Marrelli provides CFO, accounting, regulatory,
compliance and management advisory services to numerous issuers on the TSX,
TSX Venture Exchange and other Canadian and U.S. exchanges. Mr. González is
a CPA with extensive internal control, audit and accounting experience for
small, medium and large companies and highly regulated organizations. He has
over 15 years' international experience in public accounting firms, including
5 years as Audit Partner for Deloitte -Venezuela.
Louis Castro, Executive Chairman of Orosur said:
"During the period, the Company focused on exploration at El Pantano and at
Ariquemes which have both produced positive results, whilst progressing at
Anzá with negotiations of its joint venture agreement with MMA and with the
formation of the new Mining Company.
The Company will continue to build its project portfolio with other
high-quality assets.
In relation to Mr. Hugo´s departure we specially wish to thank him for his
hard work and contribution to the Company and wish him all the very best in
his future endeavours."
Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
As at As at
May 31, 2023 May 31, 2022
$ $
ASSETS
Current assets
Cash 3,748 4,221
Restricted cash 12 353
Accounts receivable and other assets 219 186
Assets held for sale in Uruguay 898 1,160
Total current assets 4,968 5,920
Non-current assets
Property, plant and equipment 123 113
Exploration and evaluation assets 3,334 5,441
Total assets 8,425 11,474
LIABILITIES AND DEFICIT
Current liabilities
Accounts payable and accrued liabilities 336 389
Liability of Chile discontinued operation 2,204 2,058
Warrant liability - 168
Liabilities held for sale in Uruguay 12,546 13,134
Total current liabilities 15,086 15,749
Deficit
Share capital 69,341 69,339
Share-based payments reserve 10,539 10,540
Currency translation reserve (2,725) (2,125)
Deficit (83,816) (82,029)
Total deficit (6,661) (4,275
Total liabilities and deficit 8,425 11,474
Consolidated Statements of Loss and Comprehensive Loss
(Expressed in thousands of United States dollars)
(Except common shares and per share amounts)
Year Ended May 31, 2023 Year Ended
$ May 31, 2022
$
Corporate and administrative expenses (1,869) (1,792)
Exploration expenses (141) (143)
Share-based compensation - (887)
Other income 21 23
Net finance cost (16) (19)
Gain on fair value of warrants 168 1,566
Foreign exchange (loss) gain net 94 (193)
Net (loss) for the year for continuing operations (1,743) (1,445)
(Loss) income from discontinued operations (44) 334
Net (loss) for the year (1,787) (1,111)
Item which may be subsequently reclassified to profit or loss:
Cumulative translation adjustment (600) (299)
Total comprehensive (loss) for the year (2,387) 1,410)
Basic and diluted net (loss) income per share for
- continuing operations (0.01) (0.01)
- discontinued operations (0.00) 0.00
Weighted average number of common shares outstanding 188,548 188,432
Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
Year Ended May 31, 2023 Year Ended
$ May 31, 2022
$
Operating activities
Net loss for the year for continued and discontinued operations (1,787) (1,111)
Adjustments for
Depreciation / Write downs (10) (121)
Share-based compensation - 887
Payments for environmental rehabilitation (269) (705)
Labour provision adjustments - (1,177)
NRV write-down in inventories 326 (1,240)
Gain on fair value of warrants (168) (1,566)
Accretion of asset retirement obligation (753) (140)
Gain on sale of property, plant and equipment (128) (462)
Foreign exchange and other (133) 335
Changes in non-cash working capital items:
Accounts receivable and other assets (828) 30
Inventories - 1,723
Accounts payable and accrued liabilities 685 (2,203)
Net cash used in operating activities (3,065) (5,750)
Investing activities
Decrease in restricted cash 342 1,014
Proceeds received for sale of property, plant and equipment 734 462
Purchase of property, plant and equipment (31) (3)
Proceeds received from exploration and option agreement 2,246 1,365
Exploration and evaluation expenditures (734) (1,780)
Net cash provided by investing activities 2,557 1,058
Financing activities
Proceeds from the sale of treasury shares - 1,228
Proceeds from exercise of options 2 4
Net cash provided by financing activities 2 1,232
Net change in cash (506) (3,460)
Net change in cash classified within assets held for sale 33 723
Cash, beginning of year 4,221 6,958
Cash end of year 3,748 4,221
Operating activities
- continuing operations (2,298) (4.655)
- discontinued operations (767) (1,185)
Investing activities
- continuing operations 1,823 596
- discontinued operations 734 462
Financing activities
- continuing operations 2 1,232
- discontinued operations - -
Supplemental information
Interest paid (received) - -
Income taxes paid (recovered) - -
Non cash investing and financing activities - -
For further information, visit www.orosur.ca (http://www.orosur.ca) , follow
on twitter @orosurm or 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. (TSXV: 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 and in Chile.
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, Argentina and Brazil and the funding in Colombia 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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