REG - Orosur Mining Inc - Results for Second Quarter ended November 30 2023

Orosur MiningAnnouncement

26/01/2024 07:00

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RNS Number : 9825A  Orosur Mining Inc  26 January 2024

 

Orosur Mining Inc.

 
Results for Second Quarter ended November 30, 2023

 

 

London, January 26th, 2024. 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 November 30, 2023 ("Period" or the "Quarter"). All dollar
figures are stated in US$ unless otherwise noted. The unaudited condensed
interim financial statements of the Company for the quarter ended November 30,
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/9825A_2-2024-1-25.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9825A_2-2024-1-25.pdf)

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

http://www.rns-pdf.londonstockexchange.com/rns/9825A_1-2024-1-25.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/9825A_1-2024-1-25.pdf)

HIGHLIGHTS

·      In Colombia, whilst exploration activities have been wound back
during the Period, some mapping and surface sampling were undertaken largely
to meet the regulatory work requirements of the licences. In addition, 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 Anza Project.

 

·      In Brazil, the Company had previously 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. Some issues were
encountered with the accuracy and reliability of the sampling and assaying of
alluvial mineralisation. In an attempt to resolve these issues, some test
programs were undertaken during the quarter to better define these field
practices so that subsequent results would be reliable and reportable.

 

·      In Argentina, 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 more detailed work could be
commenced with a view to defining drill targets. This work is near completion,
and field teams will be returning to project early in 2024.

 

·      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.

 

·      On October 16 2023, the Company announced that it had signed a
joint venture ("JV") agreement over four licences in the Nigerian lithium belt
(the "Lithium Project"). The Company, via its 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$3m 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$2m 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.

 

·      In Nigeria, on November 28 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% Li2O.
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 Colombia, post the Period end on January 23, 2024, the Company
announced that discussions with Monte Aguila are currently focussed on
exploring options whereby Orosur would acquire MMA's interest in the Anza
Project.  Such an outcome, if achieved, would see the Company returning to
having a direct or indirect interest of 100% in the Anza Project. Negotiations
are progressing towards this objective; however, these are not final and as
such there is no certainty that such a transaction will be agreed, and if so,
on what terms.  The parties are examining a range of commercial and
structuring options, as well as undertaking prudent due diligence, and as
such, finalisation of any agreement may take some time.

 

Financial and Corporate

 

·      On November 30, 2023, the Company had a cash balance of
$2,104,000 (May 31, 2023 $3,748,000). As at the date of this MD&A the
Company had a cash balance of $1,722,000.

 

·      Post the period end, at the Company AGM held on December 19, 2023
all resolutions put to shareholders were duly passed.

 

·      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 discontinuing operations. This accounting
treatment has been applied to the activities in Uruguay and Chile.

 

 

 

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

                                                    November 30, 2023   May 31,

                                                    $                   2023

                                                                        $
 ASSETS

 Current assets
 Cash                                               2,104               3,748
 Restricted cash                                    12                  12
 Accounts receivable and other assets               464                 219
 Assets held for sale in Uruguay                    934                 898
 Total current assets                               3,514               4,968

 Non-current assets
 Property, plant and equipment                      211                 123
 Exploration and evaluation assets                  4,471               3,334
 Total assets                                       8,196               8,425

 LIABILITIES AND DEFICIT

 Current liabilities
 Accounts payable and accrued liabilities           247                 336
 Liability of Chile discontinued operation          2,291               2,204
 Liabilities held for sale in Uruguay               12,512              12,546
 Total current liabilities                          15,050              15,086

 Deficit
 Share capital                                      69,341              69,341
 Share-based payments reserve                       10,539              10,539
 Currency translation reserve                       (2,042)             (2,725)
 Deficit                                            (84,686)            (83,816)
 Deficit attributable to owners of the parent       (6,848)             (6,661)
 Non-controlling interest                           (6)                 -
 Total deficit                                      (6,854)             (6,661)

 Total liabilities and deficit                      8,196               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                       Six Months Ended                 Six Months Ended

                                                                 November 30, 2023    November 30, 2022                        November 30, 2023                November 30, 2022

                                                                 $                    $                                        $                                $

 Corporate and administrative expenses                           (468)                (436)                                    (866)                            (843)
 Exploration expenses                                            (26)                 (185)                                    (53)                             (247)
 Other income                                                    10                   2                                        16                               8
 Net finance cost                                                (5)                  (3)                                      (9)                              (5)
 Gain on fair value of warrants                                  -                    92                                       -                                168
 Foreign exchange gain (loss) net                                97                   (13)                                     156                              (52)
 Net (loss) for the period for continuing operations             (392)                (543)                                    (756)                            (971)
 (Loss) income from discontinued operations                      136                  979                                      (114)                            1,050
 Net (loss) income for the period                                (256)                436                                      (870)                            79
 Item which may be subsequently reclassified to profit or loss:
 Cumulative translation adjustment                               356                  (430)                                    683                              (935)
 Total comprehensive (loss) income for the period                100                  6                                        (187)                            (856)

 Basic and diluted net (loss) income per share for
 - continuing operations                                         (0.00)               (0.00)                                   (0.00)                           (0.00)
 - discontinued operations                                       0.00                                   0.01                   (0.00)                                           0.01
 Weighted average number of common shares outstanding            188,560,300          188,552,300                              188,560,300                      188,536,300

 

 

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

                                                                    November 30, 2023   November 30, 2022

                                                                    $                   $

 Operating activities
 Net loss for the period for continued and discontinued operations  (870)               79
 Adjustments for
 Depreciation                                                       6                   -
 Write down of inventories                                          -                   (3,107)
 Gain on fair value of warrants                                     -                   (168)
 Gain on sale of property, plant and equipment                      -                   (1,396)
 Foreign exchange and other                                         366                 (163)
 Changes in non-cash working capital items:
 Accounts receivable and other assets                               (271)               (101)
 Inventories                                                        -                   3,419
 Accounts payable and accrued liabilities                           (138)               (37)
 Net cash used in operating activities                              (907)               (1,474)

 Investing activities
 Decrease in restricted cash                                        -                   270
 Proceeds received for sale of property, plant and equipment        -                   545
 Purchase of property, plant and equipment                          (85)                (1)
 Proceeds received from exploration and option agreement            -                   85
 Exploration and evaluation expenditures                            (723)               (138)
 Net cash (used in) provided by investing activities                (808)               761

 Financing activities
 Proceeds from exercise of options                                  -                   2
 Net cash provided by financing activities                          -                   2
 Net change in cash                                                 (1,715)             (711)
 Net change in cash classified within assets held for sale          71                  (604)
 Cash, beginning of period                                          3,748               4,221
 Cash end of period                                                 2,104               2,906

 Operating activities
 - continuing operations                                            (836)               (1,533)
 - discontinued operations                                          (71)                59
 Investing activities
 - continuing operations                                            (808)               216
 - discontinued operations                                          -                   545
 Financing activities
 - continued operations                                             -                   2

 

 

 

 

 

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 / Caroline Rowe / 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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