REG - Orosur Mining Inc - Second Quarter Results for 2021/22
31/01/2022 07:00
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RNS Number : 0621A Orosur Mining Inc 31 January 2022
Orosur Mining Inc.
Second Quarter Results for 2021/22
London, January 31st, 2022. Orosur Mining Inc. ("Orosur" or "the Company")
(TSXV/AIM: OMI), a South American-focused gold developer and explorer, is
pleased to announce the results for the second quarter ended November 30, 2021
("Q2 22" 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, 2021 and the related management's
discussion and analysis have been filed and are available for review on the
SEDAR website at www.sedar.com. They are also available on the Company's
website at www.orosur.ca.
A link to the PDF version of the financial statements is available
here: http://www.rns-pdf.londonstockexchange.com/rns/0621A_1-2022-1-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0621A_1-2022-1-30.pdf)
A link to the PDF version of the MDA is available
here: http://www.rns-pdf.londonstockexchange.com/rns/0621A_2-2022-1-30.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/0621A_2-2022-1-30.pdf)
Highlights of the Second Quarter Results for 2021/22
Colombia
· As announced on September 7, 2021, the Company was informed by
its Colombian Joint Venture ("JV") partner, Minera Monte Águila SAS ("Monte
Águila") that it had elected to exercise its right to assume operatorship of
the Anzá Project in Colombia. Monte Águila is a 50/50 JV between Newmont
Corporation ("Newmont") (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited
("Agnico") (TSX:AEM), and is the vehicle by which these two companies jointly
exercise their rights and obligations with respect to the Exploration
Agreement with Venture Option ("Exploration Agreement") over the Anzá
Project.
· The Anzá Project is now in its fourth year of Phase 1 during
which time a further US$4.0 million is required to be spent pursuant to the
Exploration Agreement.
· While Monte Águila manages the Anzá Project, Minera Anzá will
continue to be the 100% owner of the licences, until such time as Monte
Águila has met its financial obligations with respect to the Exploration
Agreement and elected to move to Phase 2 by September 2022.
Uruguay
· In Uruguay, the Company's wholly owned subsidiary, Loryser,
continues to focus its activities on the implementation of the Creditors
Agreement and the sale of its Uruguayan assets. Loryser is also continuing
with the reclamation and remediation of the tailings dam.
· As part of the Creditors Agreement, Orosur issued 10,000,000
Orosur common shares, in December 2019, to a trust for the benefit of
Loryser's creditors. On September 10, 2021 the Company announced that it had
been informed by the San Gregorio Trust that it had successfully sold its
entire shareholding of 10 million common shares in the Company, which amount
will be applied to meet Loryser's obligations under the Creditors Agreement.
· Good progress is being made on the sale of Loryser's other assets
including plant and equipment. The proceeds from all of these sales will be
used to pay liabilities in Uruguay in connection with the aforementioned
Creditors Agreement.
Financial and Corporate
· The unaudited 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 October 15, 2021 the Company announced that it had received
approval to transfer its listing from the TSX to the TSX Venture Exchange. The
Company believes that the transfer will provide it with operational
efficiencies, with lower costs and with a reporting regime which is closer to
that of the AIM market, whilst allowing shareholders to have continued trading
liquidity in Canada.
· On November 30, 2021, the Company had a cash balance of US$5,329k
(May 31, 2021 US$6,958k). As at the date of this announcement the Company had
a cash balance of US$4,964k.
· Post the period end, on January 14, 2022, the Company announced
that it had entered into a joint venture with Meridian Mining UK Societas in
relation to the Ariquemes tin project in Rondonia state in north west Brazil.
The JV terms are largely in line with those indicated in the Letter of Intent
("LOI") signed and announced on July 7, 2021.
For further information, 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 / Caroline Rowe
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker
JamesPope
Tel: +44 (0)20 3657 0050
Flagstaff Strategic and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
Tel: +44 (0) 207 129 1474
orosur@flagstaffcomms.com (mailto:orosur@flagstaffcomms.com)
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.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX-V: OMI; AIM: OMI) is a minerals explorer and developer
focused on identifying and advancing projects in South America. The Company
currently operates in Colombia, Brazil and Uruguay.
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 and Brazil and the funding from Newmont/Agnico
of those plans, Newmont/Agnico´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, to reach profitable levels of operations 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 Company's MDA 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
Condensed Interim Consolidated Statements of Financial Position (Expressed in
thousands of United States dollars)
Unaudited
As at As at
November 30, May 31,
2021 2021
ASSETS
Current assets
Cash and cash equivalents $ 5,329 $ 6,958
Restricted cash 2,508 1,367
Accounts receivable and other assets 192 201
Assets held for sale in Uruguay 1,270 2,314
Total current assets 9,299 10,840
Non-current assets
Property, plant and equipment 118 124
Exploration and evaluation assets Colombia 5,623 5,148
Total assets $ 15,040 $ 16,112
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 486 $ 486
Liabilities of Chile discontinued operation 2,051 2,047
Warrant liability 861 1,734
Liabilities held for sale in Uruguay 15,747 16,830
Total current liabilities 19,145 21,097
Deficit
Share capital 69,333 69,333
Shares held by Trust - (165)
Contributed surplus 9,882 8,591
Currency translation reserve (2,020) (1,826)
Deficit (81,300) (80,918)
Total deficit (4,105) (4,985)
Total liabilities and deficit $ 15,040 $ 16,112
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in thousands of United States dollars)
Unaudited
Three Months Ended Three Months Ended Six Months Ended Six Months Ended
November 30, November 30, November 30, November 30,
2021 2020 2021 2020
Operating expenses
Corporate and administrative expenses $ (284) $ (885) $ (533)
$ (565)
Exploration expenses (8) (10) (29)
(10)
Share-based compensation (4) (315) (8)
(147)
Other income 3 2 11
1
Net finance cost (2) (3) (3)
(2)
Gain on fair value of warrants - 873 -
501
Net foreign exchange gain 31 (102) 17
(33)
Net (loss) for the period for continued operations $ (255) $ (264) $ (440) $ (545)
Other comprehensive income (loss):
Cumulative translation adjustment $ 7 $ 191 $ (194) $ 157
Total comprehensive (loss) for the period from continued operations
(248) (73) (634) (388)
Income (loss) income from discontinued
operations 1,601 (404) 58 (1,479)
Total comprehensive income (loss) for the period 1,353 (477) (576) (1,867)
Basic and diluted net (loss) income per share for continued operations
$ (0.00) $ (0.00) $ (0.00) $ (0.00)
Basic and diluted net (loss) income per share for discontinued operations
$ 0.01 $ (0.00) $ 0.00 $ (0.01)
Weighted average number of common shares outstanding
188,420 161,357 188,420 160,814
(Expressed in thousands of United States dollars)
Unaudited
Six Months Six Months
Ended Ended
November 30, November 30,
2021 2020
Operating activities
Net (loss) for the period for continued and discontinued operations $ (382) $ (2,024)
Adjustments for:
Share-based compensation 315 8
Labor provision adjustments (1,499) -
Obsolescence provision (300) -
Fair value of warrants (873) -
Gain on sale of property, plant and equipment (111) (341)
Foreign exchange and other (201) 1,409
Changes in non-cash working capital items:
Accounts receivable and other assets 86 (62)
Inventories 716 698
Accounts payable and accrued liabilities 981 (659)
Net cash used in operating activities (1,268) (971)
Investing activities
Increase in the restricted cash (1,140) -
Proceeds received for sale of property, plant and equipment 111 445
Environmental tasks (477) -
Proceeds received from exploration and option agreement 1,077 1,549
Exploration and evaluation expenditures (1,619) (212)
Net cash (used in) provided by investing activities (2,048) 1,782
Financing activities
Proceeds from the sale of treasury shares 1,140 -
Proceeds from exercise of options - 44
Net cash provided by financing activities 1,140 44
Net Change in cash and cash equivalents (2,176) 855
Net change in cash classified within assets held for sale 547 (94)
Cash and cash equivalents, beginning of period 6,958 782
Cash and cash equivalents, end of period $ 5,329 $ 1,543
Operating activities
- continued operations (1,087) (620)
- discontinued operations (181) (351)
Investing activities
- continued operations (1,682) 1,337
- discontinued operations (366) 445
Financing activities
- continued operations 1,140 44
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