REG - Orosur Mining Inc - Results for First Quarter ended August 31, 2024

Orosur MiningAnnouncement

30/10/2024 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20241030:nRSd1125Ka&default-theme=true

RNS Number : 1125K  Orosur Mining Inc  30 October 2024

 

Orosur Mining Inc.

 
Results for First Quarter ended August 31, 2024

 

 

London, October 30th, 2024. Orosur Mining Inc. ("Orosur" or "the Company")
(TSX-V: OMI) (AIM: OMI) the minerals developer and explorer with operations in
Colombia, Argentina and Nigeria, announces its unaudited results for the
quarter ended August 31, 2024. 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, 2024 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/1125K_2-2024-10-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1125K_2-2024-10-29.pdf)

A link to the PDF version of the MD&A is available here:
http://www.rns-pdf.londonstockexchange.com/rns/1125K_1-2024-10-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1125K_1-2024-10-29.pdf)

HIGHLIGHTS

Operational and financial highlights for the three months ended August 31,
2024 are set out below:

Operational

·      In Colombia, the Company continued its negotiations with Agnico
and Newmont for the acquisition of MMA to regain 100% ownership of the Anza
gold project, whilst continuing with some low-level sampling and community
work.

·   Post the quarter 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 Gold 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 Anza
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 has been approved
by the TSXV and Completion is now subject only to customary closing
conditions.

 

·     In Argentina, 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 is expected to take several months and it is thus
anticipated the Company will have drilling permits later in the 2024 calendar
year.

·    In Nigeria, where the project returned good early results, the
Company is proceeding at a slower pace whilst lithium prices start to recover.

·    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 paying agent.

 

Financial

·    The condensed unaudited 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.

·    Post the quarter end, 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 ("Placing Shares") at a price of
2.78 pence per Placing Share, together with a grant of one unlisted 2 year
warrant to purchase one additional common share exercisable at US$0.0494
(approximately 3.697pence) for every two Placing Shares subscribed for. As
part of their fee, 3,003,597 unlisted 5 year warrants were granted to the
Company's broker on the transaction, exercisable at US$0.03715 (approximately
2.78 pence) for every share subscribed for.

·    On August 31, 2024, the Company had a cash balance of US$710,000
(May 31, 2024: US$1,328.000). As at the date of this announcement, the Company
has a cash balance of US$1,150,000.

 

 

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

                                                    August 31, 2024   May 31,

                                                    $                 2024

                                                                      $
 ASSETS

 Current assets
 Cash                                               710               1,328
 Restricted cash                                    12                12
 Accounts receivable and other assets               290               279
 Assets held for sale in Uruguay                    210               226
 Total current assets                               1,222             1,845

 Non-current assets
 Property, plant and equipment                      188               202
 Exploration and evaluation assets                  3,111             3,343
 Total assets                                       4,521             5,390

 LIABILITIES AND EQUITY

 Current liabilities
 Accounts payable and accrued liabilities           428               445
 Liability of Chile discontinued operation          2,417             2,376
 Liabilities held for sale in Uruguay               10,982            11,208
 Total current liabilities                          13,827            14,029

 Equity
 Share capital                                      69,529            69,529
 Share-based payments reserve                       10,538            10,538
 Warrants                                           302               302
 Currency translation reserve                       (2,196)           (1,808)
 Accumulated deficit                                (87,473)          (87,194)
 Total equity attributable to owners of the parent  (9,300)           (8,633)
 Non-controlling interest                           (6)               (6)
 Total equity                                       (9,306)           (8,639)
 Total liabilities and equity                       4,521             5,390

 

 

 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, 2024     August 31, 2023

                                                                 $                   $

 Corporate and administrative expenses                           (435)               (398)
 Exploration expenses                                            (76)                (27)
 Other income                                                    38                  6
 Net finance cost                                                (3)                 (4)
 Foreign exchange gain net                                       28                  59
 Net loss for the period for continuing operations               (448)               (364)
 Income (loss) from discontinued operations                      169                 (250)
 Net loss for the period                                         (279)               (614)
 Item which may be subsequently reclassified to profit or loss:
 Cumulative translation adjustment                               (388)               327
 Total comprehensive loss for the period                         (667)               (287)

 Basic and diluted net income (loss) per share for
 - continuing operations                                         (0.00)              (0.00)
 - discontinued operations                                       0.00                                  0.00
 Weighted average number of common shares outstanding            193,212             188,560

 

 

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

                                                                    August 31, 2024     August 31, 2023

                                                                    $                   $

 Operating activities
 Net loss for the period for continued and discontinued operations  (279)               (614)
 Adjustments for
 Depreciation / Write downs                                         5                   2
 Foreign exchange and other                                         (47)                109
 Changes in non-cash working capital items:
 Accounts receivable and other assets                               (10)                14
 Accounts payable and accrued liabilities                           (215)               70
 Net cash used in operating activities                              (546)               (419)

 Investing activities
 Purchase of property, plant and equipment                          -                   (9)
 Exploration and evaluation expenditures                            (85)                (171)
 Net cash used in provided by investing activities                  (85)                (180)
 Net change in cash                                                 (631)               (599)
 Net change in cash classified within assets held for sale          13                  37
 Cash, beginning of period                                          1,328               3,748
 Cash end of period                                                 710                 3,186

 Operating activities
 - continuing operations                                            (533)               (382)
 - discontinued operations                                          (13)                (37)
 Investing activities
 - continuing operations                                            (85)                (180)
 - discontinued operations                                          -                   -

 

 

 

 

 

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, 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, meeting the
closing conditions of 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, 2024. 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  QRFFLFIDITLAFIS