REG - Orosur Mining Inc - Results for Third Quarter ended February 28th 2025

Orosur MiningAnnouncement

Mon 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:20250428:nRSb3087Ga&default-theme=true

RNS Number : 3087G  Orosur Mining Inc  28 April 2025

Orosur Mining Inc.

Results for Third Quarter ended February 28th, 2025

 

London, April 28th, 2025. Orosur Mining Inc. ("Orosur" or "the Company")
(TSX-V/AIM: OMI)  the minerals developer and explorer with operations in
Colombia, Argentina and Nigeria, announces its unaudited results for the
quarter ended February 28th, 2025. All dollar figures are stated in US$ unless
otherwise noted.

The unaudited condensed interim financial statements of the Company for the
quarter ended February 28th, 2025 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/3087G_2-2025-4-25.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3087G_2-2025-4-25.pdf)

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

http://www.rns-pdf.londonstockexchange.com/rns/3087G_1-2025-4-25.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/3087G_1-2025-4-25.pdf)

HIGHLIGHTS

Operational and financial highlights for the quarter ended February 28th, 2025
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. The Company also re-took operatorship of the Anza Gold Project,
commencing a drilling program at the Pepas prospect in late November 2024
which is still continuing and has produced some exceptional results, the
details of which can be found in the Company's news releases on its website at
www.orosur.ca (http://www.orosur.ca) .

 

In addition, on February 4, 2025, the Company announced that, following some
surface sampling to the area immediately north of Pepas ("Pepas North"), a
number of areas of mineralised material have been identified, with one large
area along a small walking track exposing saprolite and semi-fresh rock. Over
100m of mineralisation was identified at surface, with samples taken at 1m
intervals over the entire length of the exposure. Assay results averaged
1.15g/t Au over 105m, with individual samples at times exceeding 5g/t Au. This
channel sample is at the southern extreme of the new Pepas North anomalous
area, but over 200m north of the limit of current drilling. The Company is
expected to commence drilling Pepas North during Q4 2025.

 

 

·      In Argentina, on February 17, 2025, the Company announced the
successful completion of the first phase of the two phase exploration joint
venture over the El Pantano gold project in Santa
Cruz province, Argentina ("Project" or "El Pantano"). This milestone marks
a significant step forward in the Company's strategic development of the
Project. Having invested US$1m over three years, the Company has now earned
a direct 51% interest in the Argentine company, Deseado Dorado S.A.S
("Deseado"), that owns the exploration licences that make up the Project. The
Company can now move to the second phase of the JV, that could see it move to
100% ownership of Deseado upon investment of an additional US$2m over two
years. Upon such an outcome, the original vendors would then retain a residual
2% NSR royalty, 1% of which the Company could repurchase at its election
for US$1m.

 

Post period end, a geo-physical campaign commenced with the objective of
refining 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 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 discontinuing operations. This accounting
treatment has been applied to the activities in Uruguay and Chile.

 

·      At the Company's AGM, held on December 12, 2024 all resolutions
put to shareholders were duly passed.

 

·      On December 19, 2024, the Company announced that it had raised
the sum of £1.25 million (before expenses) through a placing of 18,939,394
new common shares of no par value ("Placing Share") at a price of 6.6
pence per Placing Share.

 

·      On February 28, 2025, the Company had a cash balance of US$
2,355,000 (May 31, 2024 US$ 1,328,000). As at the date of this MD&A and
including the funds raised in the private placement (detailed below), the
Company had a cash balance of US$ 5,570,000.

 

·      Post period end, on March 27, 2025, the Company announced the
closing of an oversubscribed private placement (the "Private Placement") which
raised aggregate gross proceeds of C$6,000,000, including the full exercise of
the broker's option for gross proceeds of C$1,000.000. Under the Private
Placement, the Company sold an aggregate of 35,294,117 units of the Company
(the "Units") at a price of C$0.17 per Unit. Each Unit consisted of one common
share of the Company (each, a "Unit Share") and one half of one common share
purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant
entitles the holder to purchase one common share of the Company (each, a
"Warrant Share") at a price of C$0.25 at any time on or before March 27, 2027.

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

                                                    February 28, 2025   May 31,

                                                    $                   2024

                                                                        $
 ASSETS

 Current assets
 Cash                                               2,355               1,328
 Restricted cash                                    12                  12
 Accounts receivable and other assets               335                 279
 Assets held for sale in Uruguay                    90                  226
 Total current assets                               2,792               1,845

 Non-current assets
 Property and equipment                             322                 202
 Exploration and evaluation assets                  6,394               3,343
 Total assets                                       9,508               5,390

 LIABILITIES AND EQUITY

 Current liabilities
 Accounts payable and accrued liabilities           528                 445
 Liability of Chile discontinued operation          -                   2,376
 Liabilities held for sale in Uruguay               10,609              11,208
 Total current liabilities                          11,137              14,029

 Non-current liabilities
   Contingency royalties                            2,556               -
 Total liabilities                                  13,693              14,029

 Equity
 Share capital                                      72,306              69,529
 Share-based payments reserve                       10,849              10,538
 Warrants                                           919                 302
 Currency translation reserve                       (2,151)             (1,808)
 Accumulated deficit                                (86,099)            (87,194)
 Total equity attributable to owners of the parent  (4,176)             (8,633)
 Non-controlling interest                           (9)                 (6)
 Total equity                                       (4,185)             (8,639)
 Total liabilities and equity                       9,508               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
                                                                 Nine Months Ended   Nine Months Ended

                                                                 February 28, 2025   February 29, 2024

                                                                 $                   $

 Corporate and administrative expenses                           (1,384)             (1,285)
 Exploration expenses                                            (181)               (72)
 Share-based compensation                                        (311)               -
 Other income                                                    52                  24
 Net finance cost                                                (11)                (13)
 Foreign exchange gain net                                       89                  157
 Net loss for the period for continuing operations               (1,746)             (1,189)
 Income (loss) from discontinued operations                      2,841               (136)
 Net income (loss) for the period                                1,095               (1,325)
 Item which may be subsequently reclassified to profit or loss:
 Cumulative translation adjustment                               (343)               821
 Total comprehensive income (loss) for the period                752                 (504)

 Basic and diluted net income (loss) per share for
 - continuing operations                                         (0.00)              (0.00)
 - discontinued operations                                       0.01                                         (0.00)
 Weighted average number of common shares outstanding            229,999,586         189,057,082

 

 

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

                                                                             February 28, 2025   February 29, 2024

                                                                             $                   $

 Operating activities
 Net income (loss) for the period for continued and discontinued operations  1,095               (1,325)
 Adjustments for
 Depreciation / write downs                                                  16                  8
 Share-based payments                                                        311                 -
 Reversed liability and interest accrued                                     (2,376)             -
 Foreign exchange and other                                                  (606)               479
 Changes in non-cash working capital items:
 Accounts receivable and other assets                                        (8)                 (266)
 Accounts payable and accrued liabilities                                    (203)               (35)
 Net cash used in operating activities                                       (1,771)             (1,139)

 Investing activities
 Purchase of property and equipment                                          -                   (86)
 Exploration and evaluation expenditures                                     (729)               (1,025)
 Net cash used in investing activities                                       (729)               (1,111)

 Financing activities
 Proceeds from issue of common shares, net of shares issuance cost           2,376               486
 Proceeds from exercise of options                                           10                  3
 Proceeds from exercise of warrants                                          1,008               -
 Net cash provided by financing activities                                   3,394               489
 Net change in cash                                                          894                 (1,761)
 Net change in cash classified within assets held for sale                   133                 (5)
 Cash, beginning of period                                                   1,328               3,748
 Cash end of period                                                          2,355               1,982

 Operating activities
 - continuing operations                                                     738                 (1,144)
 - discontinued operations                                                   (2,509)             5
 Investing activities
 - continuing operations                                                     (729)               (1,111)
 Financing activities
 - continuing operations                                                     3,394               -

 

 

 

 

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 & Joint Broker

Jeff Keating / Jen Clarke / Devik Mehta

Tel: +44 (0) 20 3470 0470

 

Turner Pope Investments (TPI) Ltd - Joint Broker

Andy Thacker/James Pope

Tel: +44 (0)20 3657 0050

 

Flagstaff Communications and Investor Communications

Tim Thompson

Mark Edwards

Fergus Mellon

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.

 

Qualified Persons Statement

 

The information in this news release was compiled, reviewed and verified by
Mr. Brad George, BSc Hons (Geology and Geophysics), MBA, Member of the
Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Inc. and a
qualified person as defined by National Instrument 43-101.

 

Orosur Mining Inc. staff follow standard operating and quality assurance
procedures to ensure that sampling techniques and sample results meet
international reporting standards

 

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 continuing 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, those
described in the Section "Risks Factors" of the Company's MD&A for the
year ended May 31, 2024. The Company's continuance as a going concern is
dependent upon its ability to obtain adequate financing, to reach profitable
levels of operations 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. 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.

 

 

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  QRTMZGZDVKLGKZM