REG - Orosur Mining Inc - Results for First Quarter ended August 31, 2023

Orosur MiningAnnouncement

30/10/2023 07:15

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RNS Number : 6121R  Orosur Mining Inc  30 October 2023

 

Orosur Mining Inc.

                                             Results
for First Quarter ended August 31, 2023

 

 

London, October 30th, 2023. Orosur Mining Inc. ("Orosur" or "the Company")
(TSX-V: OMI) (AIM: OMI) the minerals developer and explorer with operations in
Colombia, Argentina, Nigeria and Brazil announces its unaudited results for
the quarter ended August 31, 2023. All dollar figures are stated in US$ unless
otherwise noted. The unaudited condensed interim financial statements of the
Company for the quarter ended August 31, 2023 and the related management's
discussion and analysis ("MD&A") have been filed and are 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/6121R_2-2023-10-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6121R_2-2023-10-27.pdf)

A link to the PDF version of the MD&A is available
here: http://www.rns-pdf.londonstockexchange.com/rns/6121R_1-2023-10-27.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/6121R_1-2023-10-27.pdf)

HIGHLIGHTS

·   In Colombia, negotiations continued with Monte Aguila on the
shareholders agreement which will govern the new mining company to be owned
51% by Monte Agulia and 49% by Orosur. These discussions have continued post
the period end. Whilst exploration activities have been wound back, some
mapping and surface sampling has been carried out; a variety of licence
processes, such as the integration of smaller licences have been advanced; and
Monte Aguila has continued to fund the promotion of relationships with local
community groups to strengthen the social licence to operate the Project.

 

·   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. Sampling was performed during July and August and assays are expected
imminently.

 

·   In Argentina, on May 4, 2023 the Company announced that mapping and
ground magnetic surveys at El Pantano had identified a major NW-SE structural
corridor over 20km long and 5km wide, with large areas of silicification,
alteration and geochemical anomalism over extensive areas. 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 continued until the commencement of the
winter recess in early June. Soil sampling assay results were received and
continued to add weight to the geological model with extended anomalism in
gold and key pathfinder elements. Sampling and ground magnetic surveys
recommenced after the winter recess in September with the plan of completing
coverage of the highest priority parts of the project before the end of the
year.

 

·    In Uruguay the Company's wholly owned subsidiary, Loryser, continued
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 paying agent.

 

·   Post the period end, on October 16,2023, the Company announced that it
had signed a joint venture agreement over four licences in the Nigerian
lithium belt. The Company, via a new 100% owned UK subsidiary, Lithium West
Limited ("Lithium West"), may earn up to 70% equity in the project in two
phases: Phase 1 - Lithium West can earn 51% equity in the project by spending
a total of US$3m over a maximum of three years. 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. Other prospective
areas are currently being examined and it is possible that additional licences
may be added to the project in the near term.

 

Financial and Corporate

·   The unaudited condensed interim 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 August 31, 2023, the Company had a cash balance of $3,186,000 (May
31, 2023: $3,748,000). As at the date of this announcement the Company had a
cash balance of $2,350,000.

 

Louis Castro, Executive Chairman of Orosur said:

 

"This has been a very busy progressive first quarter for the Company, with
positive advances across all our portfolio. We are particularly delighted,
post period, to add a high quality Lithium asset in Nigeria with an in situ
team, which will allow us to focus on both our South American activities and
on our new asset. "

 

 

 

 

 Condensed Interim Consolidated Statements of Financial Position
 (Expressed in thousands of United States dollars)
 Unaudited
                                                    As at             As at

                                                    August 31, 2023   May 31,

                                                    $                 2023

                                                                      $
 ASSETS

 Current assets
 Cash                                               3,186             3,748
 Restricted cash                                    12                12
 Accounts receivable and other assets               208               219
 Assets held for sale in Uruguay                    958               898
 Total current assets                               4,364             4,968

 Non-current assets
 Property, plant and equipment                      137               123
 Exploration and evaluation assets                  3,787             3,334
 Total assets                                       8,288             8,425

 LIABILITIES AND DEFICIT

 Current liabilities
 Accounts payable and accrued liabilities           269               336
 Liability of Chile discontinued operation          2,248             2,204
 Liabilities held for sale in Uruguay               12,719            12,546
 Total current liabilities                          15,236            15,086

 Deficit
 Share capital                                      69,341            69,341
 Share-based payments reserve                       10,539            10,539
 Currency translation reserve                       (2,398)           (2,725)
 Deficit                                            (84,430)          (83,816)
 Total deficit                                      (6,948)           (6,661)
 Total liabilities and deficit                      8,288             8,425

 

 

 Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
 (Expressed in thousands of United States dollars)
 (Except common shares and per share amounts)
 Unaudited
                                                                 Three Months Ended  Three Months Ended

                                                                 August 31, 2023     August 31, 2022

                                                                 $                   $

 Corporate and administrative expenses                           (398)               (407)
 Exploration expenses                                            (27)                (62)
 Other income                                                    6                   6
 Net finance cost                                                (4)                 (2)
 Gain on fair value of warrants                                  -                   76
 Foreign exchange (loss) gain net                                59                  (39)
 Net (loss) for the period for continuing operations             (364)               (428)
 (Loss) income from discontinued operations                      (250)               71
 Net (loss) for the period                                       (614)               (357)
 Item which may be subsequently reclassified to profit or loss:
 Cumulative translation adjustment                               327                 (505)
 Total comprehensive (loss) for the period                       (287)               (862)

 Basic and diluted net (loss) income per share for
 - continuing operations                                         (0.00)              (0.00)
 - discontinued operations                                       (0.00)                                0.00
 Weighted average number of common shares outstanding            188,560             188,432

 

 

 Condensed Interim Consolidated Statements of Cash Flows
 (Expressed in thousands of United States dollars)
 Unaudited                                                          Three Months Ended  Three Months Ended

                                                                    August 31, 2023     August 31, 2022

                                                                    $                   $

 Operating activities
 Net loss for the period for continued and discontinued operations  (614)               (357)
 Adjustments for
 Depreciation / Write downs                                         2                   -
 Gain on fair value of warrants                                     -                   (76)
 Gain on sale of property, plant and equipment                      -                   (4)
 Foreign exchange and other                                         109                 (266)
 Changes in non-cash working capital items:
 Accounts receivable and other assets                               14                  (9)
 Inventories                                                        -                   17
 Accounts payable and accrued liabilities                           70                  (81)
 Net cash used in operating activities                              (419)               (776)

 Investing activities
 Decrease in restricted cash                                        -                   150
 Proceeds received for sale of property, plant and equipment        -                   4
 Purchase of property, plant and equipment                          (9)                 -
 Proceeds received from exploration and option agreement            -                   37
 Exploration and evaluation expenditures                            (171)               (61)
 Net cash (used in) provided by investing activities                (180)               130
 Net change in cash                                                 (599)               (646)
 Net change in cash classified within assets held for sale          37                  59
 Cash, beginning of period                                          3,748               4,221
 Cash end of period                                                 3,186               3,634

 Operating activities
 - continuing operations                                            (382)               (713)
 - discontinued operations                                          (37)                (63)
 Investing activities
 - continuing operations                                            (180)               126
 - discontinued operations                                          -                   4

 

 

 

 

 

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 / 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

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, Nigeria and Brazil,

 

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, Nigeria 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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