REG - Orosur Mining Inc - Lithium JV, Nigeria

Orosur MiningAnnouncement

16/10/2023 07:00

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RNS Number : 1474Q  Orosur Mining Inc  16 October 2023

 

 

 

 

 

 

Orosur Mining Inc - Lithium JV, Nigeria

 

·    Company signs Exploration JV to cover four licences across the
Nigerian Lithium belt.

·    Exploration programs to start immediately.

·    Full exploration team and infrastructure in place.

 

London, October 16(th) 2023. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), the minerals explorer and developer operating in Colombia,
Argentina and Brazil, is pleased to announce that as a continuation of the
Company's  strategy of securing high quality mineral exploration
opportunities in key jurisdictions, the Company has signed a joint venture
("JV") agreement to explore a number of exploration licences across Nigeria
(the "Project") which the Company considers to be highly prospective for
Lithium mineralisation.

 

The Company has long been examining an entry into the Lithium space to add to
its diversified portfolio of high-quality exploration assets but had found few
attractive South American opportunities.

 

Nigeria however is rapidly emerging as one of the most prospective regions of
Africa for the discovery of lithium pegmatite mineralisation and as such is
now seeing a very high level of interest and activity.  The Company's
executive team has substantial operating experience and high-level
relationships in Nigeria, and the Company has been leveraging these factors
over the last 12 months to gain substantial land positions in Nigeria's prime
lithium pegmatite districts.

 

A team of experienced geologists is in place, with all necessary equipment and
logistical support such that field programs will be commencing immediately.
Work will start initially with preliminary reconnaissance, and it is expected
that results and additional work can advance quickly.

 

Details

 

The Company has signed a JV with Nigerian company Jurassic Mines Ltd
("Jurassic"), whereby Orosur, via a new 100% owned UK subsidiary, Lithium West
Limited ("Lithium West"), may earn up to 70% equity in the Project in two
phases:

 

1.   Phase 1 - Lithium West can earn 51% equity in the Project by spending a
total of US$3m over a maximum of three years.

2.   Phase 2 - Lithium West can earn an additional 19% equity in the
project, up to a total of 70%, by spending an additional US$2m over a maximum
of two years.

 

The Project at inception will comprise four exploration licences across
Nigeria's primary pegmatite belt, covering a total of circa 322km2. Other
prospective areas are currently being examined and it is possible that
additional licences may be added to the Project in the near term.

 

All licences have been specifically chosen due to their location within the
major lithostructural corridors that are known to control lithium pegmatite
mineralisation in this region.

 

Geology

 

Nigeria has long been known to have substantial potential for pegmatite
mineralisation, however historically these pegmatites were largely exploited
at the artisanal level for other metals such as Niobium and Tantalum. As such,
little geoscientific information was publicly available related to any lithium
potential.

 

However, in early 2018, the Nigerian Ministry of Mines and Steel Development
began to undertake major geoscience mapping projects across the bulk of
Nigeria's crystalline basement rocks to better define the mineral potential as
the key plank in a far-sighted strategy to reduce the country's dependence on
oil.  These projects covered a range of commodities and were referred to as
the National Integrated Mineral Exploration Project (NIMEP).  This work
indicated that the country indeed had substantial lithium pegmatite potential,
especially in the southern regions.

Fig 1 Schematic, Nigerian Geology

 

As a result, Nigeria has, in the last 12 months, seen a sharp increase in
small scale artisanal lithium mining of obvious outcropping pegmatites, with a
corresponding and similarly sharp increase in modern exploration across the
region by international public and private companies.

 

Orosur began to examine opportunities in Nigeria in mid-2022, focusing on
regional geological assessment and land selection, leading to this current JV
with Jurassic.

 

Rationale and Experience

 

The Company has been examining options to enter the lithium space for some
years, based initially on Andean brines and Brazilian pegmatites.  However,
it became apparent that these regions had become extremely competitive, with
correspondingly high entry costs, which the Company felt were not commensurate
with the quality of projects on offer.

 

Nigeria was then examined because of the extensive in-country experience of
the Company's executive team and because the Country's lithium pegmatite
potential is, to a large extent, a geological mirror image of the pegmatite
fields in northeastern Brazil. The Company commenced the process of examining
entry strategies, based upon a detailed assessment of geological potential,
rather than simply on what was being offered.

 

Orosur worked closely with its new Nigerian partner, Jurassic, to carry out
regional targeting exercises that ultimately led to these first four licences
being pegged as vacant ground, specifically for this JV, rather than vending
into pre-existing licences.

 

In addition, the Company has, via its long-standing relationships and
experience, aligned itself with a highly experienced local exploration
consultancy which will provide the Company with access to exploration teams
with associated field logistics, drill rigs, assay equipment and extensive
geological knowledge, thus allowing the Company to operate in the region
without any major upfront investment or addition of substantial overhead.

 

 

 

Orosur CEO Brad George commented:

 

"Orosur has been examining entry into the lithium space for several years, but
as with our other projects, we have pursued an early stage, low entry cost
strategy, based upon detailed geological understanding of the local
mineralising systems.  Nigeria is clearly on a different continent, but with
the extensive Nigerian experience of myself and our Chairman Louis Castro,
together with our partner's excellent local team, we are entirely confident in
our ability to develop this exciting opportunity in Nigeria in harmony with
our equally exciting South American assets which we will continue to progress
as planned."

 

 

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.

 

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. (TSX: OMI; AIM: OMI) is a minerals explorer and developer
focused on identifying and advancing projects in Colombia, Argentina, Nigeria
and Brazil.

 

 

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 Monte Águila of those plans, Monte
Águila´s decision to continue with the Exploration Agreement, the formation
of a new mining company or mining venture to hold the project, 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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