REG - Orosur Mining Inc - Full Year 2024 Results

Orosur MiningAnnouncement

01/10/2024 07:00

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RNS Number : 3454G  Orosur Mining Inc  01 October 2024

 

 

Orosur Mining Inc. - Full Year 2024 Results

London, October 1(st), 2024. Orosur Mining Inc. ("Orosur" or "the Company")
(TSX-V: OMI) (AIM: OMI) announces its audited results for the fiscal year
ended May 31, 2024. 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, 2024; 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/3454G_2-2024-9-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3454G_2-2024-9-30.pdf)

A link to the PDF version of the MD&A is available here:

http://www.rns-pdf.londonstockexchange.com/rns/3454G_1-2024-9-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3454G_1-2024-9-30.pdf)

HIGHLIGHTS

In Colombia, during the earlier part of the financial year, and whilst
discussions were continuing on the involvement of Monte Aguila in the Anza
Project ("Anza Project"), some limited activities did take place including
mapping and surface sampling; advancing the integration of smaller licences
and the promotion of relationships with local community groups to strengthen
the social licence to operate the Anza Project.

 

Post the financial year end, on September 10, 2024, the Company entered into a
sale and purchase agreement ("SPA") to acquire MMA, thereby reassuming 100% of
the Company's flagship Anza Project in Colombia. Under the SPA, Orosur's
wholly owned Canadian subsidiary, Waymar Resources Ltd., will purchase all of
the issued shares of MMA from wholly owned subsidiaries of Newmont and Agnico
resulting in Orosur regaining 100% ownership of the Project (the
"Acquisition"). No cash is payable up front, with all consideration deferred
and wholly contingent upon commercial production from the Anza Project. The
agreed consideration payable to Newmont and Agnico consists of a net smelter
royalty of an aggregate amount of 1.5% on all future mineral production, plus
a further royalty of an aggregate amount of US$75 per ounce of gold or gold
equivalent ounce for the first 200,000 gold equivalent ounces of mineral
production. Completion of the Acquisition is subject to customary conditions
including the approval of the TSXV.

 

 

In Argentina, sampling and ground magnetic surveys recommenced after the
winter recess in September 2023 with the plan of completing coverage of the
highest priority parts of the project before more detailed work could be
commenced with a view to defining drill targets.

 

The teams returned early in 2024 and work was completed at the end of April
2024, with results compiled and assessed. Examination of these data have
supported the Company's original thesis as to the prospectivity of El
Pantano.   A regional scale SE-NW trending rift system has been clearly
mapped at El Pantano, approximately 20km in strike length and 6km in width;
the same style and scale of structural architecture that is known to control
the emplacement of major gold/silver deposits elsewhere in the massif. Swarms
of quartz veins have been mapped over wide areas providing evidence of a
highly active epithermal system. The Company is optimistic that it has
identified a major, hitherto unknown low-sulphidation epithermal system,
potentially similar in scale to that which produced the giant precious metal
deposits at Cerro Negro, Cerro Vanguardia and others.

 

The objective of the next phase of work will be to focus down to areas within
this rift system that may be the most attractive structural conduits for fluid
flow and mineral deposition. Work programs may include more detailed
geochemistry, electrical geophysics (resistivity and IP) and reconnaissance
drilling. In the meantime, the Company has completed and submitted all the
necessary environmental studies that are required as part of the Santa Cruz
Province drilling permit process.  Consideration of these reports and
drilling approval was expected to take several months and it is thus
anticipated the Company will have drilling permits later in calendar 2024.

 

In Nigeria, on October 16, 2023 the Company announced that it had signed a
joint venture agreement over 4 licences in the Nigerian lithium belt ("Lithium
Project"). The Company via a new 100% owned UK subsidiary, Lithium West
Limited ("Lithium West"), may earn up to 70% equity in the Lithium Project in
two phases: Phase 1 - Lithium West can earn 51% equity in the Lithium Project
by spending a total of US$3million over a maximum of three years. Phase 2 -
Lithium West can earn an additional 19% equity in the Lithium Project, up to a
total of 70%, by spending an additional US$2million over a maximum of two
years. Field work began immediately after signing of the JV with the first
results released at the end of November 2023.

 

On November 28(th), 2023, the Company announced positive results from an
initial mapping and sampling program that was carried out on the Lithium
Project. Several hundred samples of various outcrops were taken, with
approximately 70 then being analysed by way of XRF and LIBS for lithium
content as well as a number of other pathfinder elements. Mapped pegmatite
systems were noted over substantial strike lengths of several km's and of
varying widths from sub-metre, to over 30m in one massive example. Numerous
pegmatite samples returned high levels of lithium, with several over 2% LiO2.
Also announced on that day was the acquisition of a further two new
exploration licences in Nigeria taking the total area of prospective land
under title to 533km2, representing one of the more dominant land positions
in Nigeria.

 

In Brazil, on July 5, 2023, the Company announced that given the success of
the regional stream sediment program performed across the Company's Ariquemes
district, it had 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. Further
exploration work was planned including sampling and assaying. In spite of the
progress made in Brazil, as a result of a Company review to prioritise the use
of its capital, a decision was taken to no longer pursue activity on its
Brazilian project. Accordingly, on May 3(rd), 2024, Orosur terminated its JV
agreement with Meridian Mining UK Societas on the Ariquemes tin project.

 

Finally,in Uruguay, the Company's wholly owned subsidiary, Loryser, continues
to focus its activities on the final stages of the Creditors Agreement. In
line with the Creditors Agreement, Loryser has sold all of its assets. It has
paid for the settlements with all of its former employees; it has finalised
the reclamation and remediation works on the tailings dam and has successfully
concluded a one-year post-closure control phase. Loryser is well advanced in
distributing the proceeds to Loryser's trade creditors in accordance with the
Creditors' Agreement, via a Court approved settlement agent.

 

Financial and Corporate

 

The audited 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.

 

At the Company's AGM, held on December 19, 2023, all resolutions put to
shareholders were duly passed including approval of the Company's new equity
incentive plan pursuant to which the Company may grant stock options,
restricted share units, and deferred share units to the officers, directors,
employees and consultants of the Company and its subsidiaries. The new equity
incentive plan replaces the Company's prior stock option plan and should
reduce dilution to shareholders and be more fiscally efficient for some of the
participants.

 

On February 15, 2024, the Company announced that it had raised the sum of
£500,000 (before expenses) through a placing of 16,949,152 new common shares
of no par value at a price of 2.95 pence per share, together with a grant of
one unlisted 2 year warrant to purchase one additional common share
exercisable at US$0.0558 (approximately 4.425 pence) for every share
subscribed for. As part of their fee,1,694,915 unlisted 5 year warrants were
granted to the Company's broker, exercisable at US$0.0372 (approximately 2.95
pence) for every share subscribed for.

 

On September 30, 2024 the Company announced that it had raised the sum of
£835,000 (before expenses) through a placing of 30,035,971 new common shares
of no par value at a price of 2.78 pence per share, together with a grant of
one unlisted 2 year warrant to purchase one additional share exercisable at
US$0.0494 (approximately 3.697p) for every two shares subscribed for. As part
of their fee,3,003,597 unlisted 5 year warrants were granted to the Company's
broker, exercisable at US$0.03715 (approximately 2.78 pence) for every share
subscribed for. Completion of the placing is subject, amongst other things, to
admission of the New Common Shares to trading on AIM.

 

On May 31, 2024, the Company had a cash balance of $1,328,000 (May 31, 2023 -
$3,748,000). As at the date of this MD&A the Company had a cash balance of
$500,000 before the receipt of the proceeds of $1,119,000 (before expenses)
raised in the private placement set out in the paragraph above.

 

Outlook and Strategy

 

Given the recent signing by the Company of the agreement to acquire MMA in
Colombia and the encouraging results in Argentina, the Company will focus its
investment in these areas. We will also advance our project in Nigeria, which
has returned strong results, albeit at a slower pace whilst lithium prices
continue to recover.

 

In Colombia, within the Anza Project, the Company is planning to recommence
drilling at Pepas and to examine the potential of moving the APTA prospect to
a maiden resource in the near term.

 

 

 

 

 

 

 

 

 

 Consolidated Statements of Financial Position
 (Expressed in thousands of United States dollars)

                                                    As at          As at

                                                    May 31, 2024   May 31, 2023

                                                    $              $
 ASSETS

 Current assets
 Cash                                               1,328          3,748
 Restricted cash                                    12             12
 Accounts receivable and other assets               279            219
 Assets held for sale in Uruguay                    226            898
 Total current assets                               1,845          4,968

 Non-current assets
 Property and equipment                             202            123
 Exploration and evaluation assets                  3,343          3,334
 Total assets                                       5,390          8,425

 LIABILITIES AND EQUITY

 Current liabilities
 Accounts payable and accrued liabilities           446            336
 Liability of Chile discontinued operation          2,376          2,204
 Liabilities held for sale in Uruguay               11,208         12,546
 Total current liabilities                          14,029         15,086

 Deficit
 Share capital                                      69,529         69,341
 Share-based payments reserve                       10,538         10,539
 Warrants                                           302            -
 Currency translation reserve                       (1,808)        (2,725)
 Accumulated Deficit                                (87,194)       (83,816)
 Total equity attributable to owners of the parent  (8,633)        (6,661)
 Non-controlling interest                           (6)            -
 Total equity                                       (8,639)        (6,661)
 Total liabilities and equity                       5,390          8,425

 

 

 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, 2023

                                                                                                         $

 Corporate and administrative expenses                           (2,030)                                 (1,869)
 Exploration expenses                                            (105)                                   (141)
 Impairment of assets                                            (1,841)                                 -
 Other income                                                    40                                      21
 Net finance cost                                                (17)                                    (16)
 Gain on fair value of warrants                                  -                                       168
 Foreign exchange gain net                                       172                                     94
 Net loss for the year for continuing operations                 (3,781)                                 (1,743)
 Income (loss) from discontinued operations                                        403                   (44)
 Net loss for the year                                           (1,787)                                 (1,787)
 Item which may be subsequently reclassified to profit or loss:
 Cumulative translation adjustment                                                 917                   (600)
 Total comprehensive loss for the year                           (2,461)                                 (2,387)

 Basic and diluted net income (loss) per share for
 - continuing operations                                         (0.00)                                  (0.01)
 - discontinued operations                                                   0.00                        (0.00)
 Weighted average number of common shares outstanding            193,212                                 188,548

 

 

 Consolidated Statements of Cash Flows
 (Expressed in thousands of United States dollars)
                                                                    Year Ended May 31, 2024  Year Ended

                                                                    $                        May 31, 2023

                                                                                             $

 Operating activities
 Net loss for the year for continued and discontinued operations    (3,378)                  (1,787)
 Adjustments for
 Depreciation / Write downs                                         17                       (10)
 Impairment of assets                                               1,841                    -
 Payments for environmental rehabilitation                          -                        (269)
 NRV write-down in inventories                                      -                        326
 Gain on fair value of warrants                                     -                        (168)
 Accretion of asset retirement obligation                           (19)                     (753)
 Gain on sale of property, plant and equipment                      -                        (128)
 Foreign exchange and other                                         153                      (133)
 Changes in non-cash working capital items:
 Accounts receivable and other assets                               803                      (828)
 Accounts payable and accrued liabilities                           (1,160)                  685
 Net cash used in operating activities                              (1,743)                  (3,065)

 Investing activities
 Decrease in restricted cash                                        -                        342
 Proceeds received for sale of property, plant and equipment        -                        734
 Purchase of property and equipment                                 (79)                     (31)
 Proceeds received from exploration and option agreement            -                        2,246
 Exploration and evaluation expenditures                            (1,056)                  (734)
 Net cash (used in) provided by investing activities                (1,135)                  2,557

 Financing activities
 Proceeds from issue of common shares, net of shares issuance cost  486                      -
 Proceeds from exercise of options                                  3                        2
 Net cash provided by financing activities                          489                      2
 Net change in cash                                                 (2,389)                  (506)
 Net change in cash classified within assets held for sale          (31)                     33
 Cash, beginning of year                                            3,748                    4,221
 Cash end of year                                                   1,328                    3,748

 Operating activities
 - continuing operations                                            (1,773)                  (2,298)
 - discontinued operations                                          30                       (767)
 Investing activities
 - continuing operations                                            (1,135)                  1,823
 - discontinued operations                                          -                        734
 Financing activities
 - continuing operations                                            488                      2
 - discontinued operations                                          1                        -
 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 X @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.

 

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

 

 

About Orosur Mining Inc.

 

Orosur Mining Inc. (TSXV: OMI; AIM: OMI) is a minerals explorer and developer
currently operating in Colombia, Argentina and Nigeria.

 

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, completion of the
Acquisition, approval of the TSXV of the acquisition, Orosur becoming operator
of the Anzá Project, the expected focus on the Pepas prospect, the
exploration plans in Colombia and the funding of those plans, and other events
or conditions that may occur in the future. 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 to, obtaining conditional approval of the TSXV and
meeting other conditions to closing the Acquisition, timing of closing of the
Acquisition and those as described in Section "Risks Factors" of the Company's
MD&A for the year ended May 31, 2023. 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. The Company's continuance as
a going concern is dependent upon its ability to obtain adequate financing,
and to reach a satisfactory closure 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

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