REG - Orosur Mining Inc - Results for Second Quarter ended November 30, 2024
30/01/2025 07:00
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RNS Number : 1875V Orosur Mining Inc 30 January 2025
Orosur Mining Inc.
Results for Second Quarter ended November 30, 2024
London, January 30th, 2025. 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 November 30, 2024. 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, 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/1875V_1-2025-1-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1875V_1-2025-1-29.pdf)
A link to the PDF version of the MD&A is available here:
http://www.rns-pdf.londonstockexchange.com/rns/1875V_2-2025-1-29.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/1875V_2-2025-1-29.pdf)
HIGHLIGHTS
Operational and financial highlights for the six months ended November 30,
2024 are set out below:
Operational
· In Colombia, on November 27, 2024, the Company completed the
acquisition of Minera Monte Aguila S.A.S. ("Monte Aguila") as a result of
which the Company now has 100% ownership of the Company's flagship Anzá Gold
Project. Under the terms of the acquisition, Orosur's wholly owned Canadian
subsidiary, Waymar Resources Ltd., purchased all of the issued shares of Monte
Aguila from wholly owned subsidiaries of Newmont and Agnico resulting in
Orosur regaining 100% ownership of the Project. No cash is payable up front,
with all consideration deferred and wholly contingent upon commercial
production from the Anza Project. The agreed consideration is a net smelter
royalty of 1.5% on all future mineral production, plus a capped fixed royalty
of an aggregate amount of US$75 per ounce of gold or gold equivalent ounce on
the first 200,000 gold equivalent ounces of mineral production. Completion of
the acquisition was subject to customary conditions including the approval of
the TSXV, which conditions have all been met. The Company also re-took
operatorship of the Anza Gold Project, commencing a drilling program at the
Pepas prospect in late November 2024 which has extended post quarter end with
very good results.
· 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 was expected to take several months. The Company has now
received the approval necessary for drilling. A further geo-physical campaign
is planned to refine targets after which the Company will consider drilling,
likely to take place later in 2025 subject to funding.
· In Nigeria, the Company will look to make some advances on its
lithium project, but at a slower pace whilst lithium prices continue 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 settlement
agent.
Financial
· 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.
· On September 30(th), 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 at a price of 2.78 pence per
Placing Share, together with a grant of one unlisted warrant to purchase one
additional common share exercisable at US$0.0494 (approximately 3.697p) for
every two Placing Shares subscribed for.
· On November 30, 2024, the Company had a cash balance of $945,000
(May 31, 2024 $2,104,000). As at the date of this announcement the Company has
a cash balance of $2,200,000.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
Unaudited
As at As at
November 30, 2024 May 31,
$ 2024
$
ASSETS
Current assets
Cash 945 1,328
Restricted cash 12 12
Accounts receivable and other assets 391 279
Assets held for sale in Uruguay 192 226
Total current assets 1,540 1,845
Non-current assets
Property and equipment 319 202
Exploration and evaluation assets 5,632 3,343
Right-of-use asset 131 -
Total assets 7,622 5,390
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities 667 445
Liability of Chile discontinued operation - 2,376
Liabilities held for sale in Uruguay 10,618 11,208
Right-of use asset 27 -
Total current liabilities 11,312 14,029
Non-current liabilities
Contingency royalties 2,556 -
Right-of use asset 147 -
Total liabilities 14,015 14,029
Equity
Share capital 70,086 69,529
Share-based payments reserve 10,645 10,538
Warrants 697 302
Currency translation reserve (2,488) (1,808)
Accumulated deficit (85,324) (87,194)
Total equity attributable to owners of the parent (6,384) (8,633)
Non-controlling interest (9) (6)
Total equity (6,393) (8,639)
Total liabilities and equity 7,622 5,390
Condensed Interim Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss)
(Expressed in thousands of United States dollars)
(Except common shares and per share amounts)
Unaudited
Three Months Ended November 30, 2024 Three Months Ended November 30, 2023 Six Months Ended November 30, Six Months Ended November 30, 2023
$ $ 2024 $
$
Corporate and administrative expenses (478) (468) (913) (866)
Exploration expenses (33) (26) (109) (53)
Share-based compensation (107) - (107) -
Other income 13 10 51 16
Net finance cost (3) (5) (6) (9)
Foreign exchange gain net (10) 97 18 156
Net (loss) for the period for continuing
operations (618) (392) (1,066) (756)
(Loss) income from discontinued operations 2,767 136 2,936 (114)
Net income (loss) for the period 2,149 (256) 1,870 (870)
Item which may be subsequently reclassified to profit or loss:
Cumulative translation adjustment (292) 356 (680) 683
Total comprehensive income (loss) for the
period 1,857 100 1,190 (187)
Basic and diluted net income (loss per share for
- continuing operations (0.00) (0.00) (0.00) (0.00)
- discontinued operations 0.01 0.00 0.01 (0.00)
Weighted average number of common
shares outstanding 225,718,428 188,560,300 215,596,429 188,560,300
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
Unaudited Six Months Ended Six Months Ended
November 30, 2024 November, 2023
$ $
Operating activities
Net income (loss) for the period for continued and discontinued operations 1,870 (870)
Adjustments for
Depreciation / Write downs 10 6
Share-based payments 107 -
Reversed liability and interest accrued (2,376) -
Foreign exchange and other (11) 366
Changes in non-cash working capital items:
Accounts receivable and other assets (69) (271)
Accounts payable and accrued liabilities (628) (138)
Net cash used in operating activities (1,097) (907)
Investing activities
Purchase of property and equipment - (85)
Exploration and evaluation expenditures (268) (727)
Net cash used in investing activities (268) (808)
Financing activities
Proceeds from issue of common shares, net of shares issuance cost 952 -
Net cash provided by financing activities 952 -
Net change in cash (413) (1,715)
Net change in cash classified within assets held for sale 30 71
Cash, beginning of period 1,328 3,748
Cash end of period 945 2,104
Operating activities
- continuing operations 1,309) (836)
- discontinued operations (2,406) (71)
Investing activities
- continuing operations (268) (808)
- discontinued operations - -
Financing activities
- continuing operations 952 -
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 / Jen Clarke / Devik Mehta
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.
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