REG - Orosur Mining Inc - Results for First Quarter ended August 31, 2022
31/10/2022 07:00
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RNS Number : 5732E Orosur Mining Inc 31 October 2022
Orosur Mining Inc.
Results for First Quarter ended August 31, 2022
London, October 31, 2022. Orosur Mining Inc. ("Orosur" or "the Company")
(TSXV: OMI) (AIM: OMI) announces its unaudited results for the quarter ended
August 31, 2022. All dollar figures are stated in US$ unless otherwise noted.
The unaudited condensed financial statements of the Company for the quarter
ended August 31, 2022 and the related management's discussion and analysis
("MD&A") have been filed and are available for review on the SEDAR website
at www.sedar.com (http://www.sedar.com) and 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/5732E_1-2022-10-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5732E_1-2022-10-30.pdf)
A link to the PDF version of the MD&A is available here:
http://www.rns-pdf.londonstockexchange.com/rns/5732E_2-2022-10-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/5732E_2-2022-10-30.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, subsequent to the quarter 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, was 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 that 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 Anza Project. The Company and Monte Aguila will begin the process of
forming a new mining company ("Mining Company") that will hold title to the
Anza 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.
· 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).
Two additional holes are currently underway from new pads in an attempt to
better define the geometry of the mineralised body at Pepas.
Argentina
· 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 the coming two months.
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.
· Good 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.
On August 31, 2022, the Company had a cash balance of US$ 3,634k (May 31,
2022: US$ 4,221k). As at the date of this announcement the Company had a cash
balance of US$ 3,033k.
Outlook and Strategy
During the period, the Company continued its focus on developing the potential
at Anza in Colombia as well as progressing its Ariquemes tin project in
Brazil, and its El Pantano gold/silver project in Argentina. The combination
of the three projects 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, whilst concluding the orderly closure of its historical
operations in Uruguay.
Consolidated Statements of Financial Position (Expressed in thousands of
United States dollars)
As at As at
August 31, May 31,
2022 2022
ASSETS
Current assets
Cash and cash equivalents $ 3,634 $ 4,221
Restricted cash 203 353
Accounts receivable and other assets 154 186
Assets held for sale in Uruguay 1,089 1,160
Total current assets 5,080 5,920
Non-current assets
Property, plant and equipment 100 113
Exploration and evaluation assets Colombia 4,985 5,441
Total assets $ 10,165 $ 11,474
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 312 $ 389
Liabilities of Chile discontinued operation 2,075 2,058
Warrant liability 92 168
Liabilities held for sale in Uruguay 12,823 13,134
Total current liabilities 15,302 15,749
Deficit
Share capital 69,339 69,333
Contributed surplus 10,540 10,540
Currency translation reserve (2,630) (2,125)
Deficit (82,386) (82,029)
Total deficit (5,137) (4,275)
Total liabilities and deficit $ 10,165 $ 11,474
Consolidated Statements of Loss and Comprehensive Loss (Expressed in thousands
of United States dollars)
Three Months Three Months
Ended Ended
August 31, August 31,
2022 2021
Operating expenses
Corporate and administrative expenses $ (407) $ (320)
Exploration expenses (62) -
Share-based compensation - (168)
Other income 6 1
Net finance cost (2) (1)
Gain on fair value of warrants 76 372
Foreign exchange (loss) gain net (39) (69)
Net (loss) for the year for continued operations $ (428) $ (185)
Other comprehensive (loss) income:
Cumulative translation adjustment $ (505) $ (201)
Total comprehensive (loss) for the year from continued operations
(933) (386)
Income (loss) from discontinued operations 71 (1,538)
Total comprehensive (loss) for the year (862) (1,924)
Basic and diluted net (loss) per share for continued operations $ (0.00) $ (0.00)
Basic and diluted net income (loss) per share for discontinued operations
$ 0.00 $ (0.01)
Weighted average number of common shares 188,520 188,420
outstanding
Consolidated Statements of Cash Flows (Expressed in thousands of United States
dollars)
Three Months Three Months
Ended Ended
August 31, August 31,
2022 2021
Operating activities
Net loss for the year for continued and discontinued operations $ (357) $ (1,723)
Adjustments for:
Share-based payments - 168
Fair value of warrants (76) (372)
Gain on sale of property, plant and equipment (4) (111)
Foreign exchange and other (266) (133)
Changes in non-cash working capital items:
Accounts receivable and other assets (9) (53)
Inventories 17 350
Accounts payable and accrued liabilities (81) 640
Net cash used in operating activities (776) (1,234)
Investing activities
Increase (decrease) in the restricted cash 150 (719)
Proceeds received for sale of property, plant and equipment 4 111
Proceeds received from exploration and option agreement 37 782
Exploration and evaluation expenditures (61) (910)
Net cash provided by investing activities 130 (736)
Financing activities
Proceeds from the sale of treasury shares - 719
Net cash provided by financing activities - 719
Net Change in cash and cash equivalents (646) (1,251)
Net change in cash classified within assets held for sale 59 558)
Cash and cash equivalents, beginning of year 4,221 6,958
Cash and cash equivalents, end of year $ 3,634 $ 6,958
Operating activities
- continued operations (713) (565)
- discontinued operations (63) (669)
Investing activities
- continued operations 126 (847)
- discontinued operations 4 111
Financing activities
- continued operations - 719
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.
For further information, please contact:
Orosur Mining Inc
Louis Castro, Executive 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
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.
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 Company's MD&A for the year
ended May 31, 2022. 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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