REG - Orosur Mining Inc - Second Quarter Results for 2022/23
30/01/2023 07:00
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RNS Number : 1782O Orosur Mining Inc 30 January 2023
Orosur Mining Inc.
Second Quarter Results for 2022/23
London, January 30th, 2023. Orosur Mining Inc. ("Orosur" or "the Company")
(TSXV/AIM: OMI), a South American-focused minerals explorer and developer, is
pleased to announce its results for the second quarter ended November 30, 2022
("Q2 23" 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, 2022 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.
Highlights of the Second Quarter Results for 2022/23
Colombia
· On 6th September 2022, the Company announced assay results from the
Pepas prospect to the north of Anza, including assay results from PEP001 which
returned a substantial, high-grade intersection of 150.9m @ 3.00g/t Au (from
surface). Also announced on that day, that Monte Aguila had informed the
Company that it had met its expenditure of US$4m for the year.
· On 9(th) September 2022, the Company announced that its JV partner,
Monte Águila provided the Company with a Phase 1 Earn-In Notice, having
completed all of the Phase 1 obligations, including investing US$10 million in
the Anza Project. The Company and Monte Aguila will begin the process of
forming a new mining company ("Mining Company") that will hold title to the
Anza Project's concessions and applications. The Company was also notified by
Monte Aguila that in accordance with the Exploration Agreement, it will enter
Phase 2 following negotiation and execution of a joint venture agreement to
govern the operations of the Mining Company. Once the Mining Company is
formed, which is expected to take several months, Orosur will initially have
49% ownership and Monte Aguila, 51% ownership in the Mining Company, which
will be managed by Monte Aguila.
· On 21(st) October 2022, the Company announced assay results from four
additional diamond drill holes at Pepas and Pupino. Both the Pepas and Pupino
prospects are located in the northern region of the Anzá Prospect, roughly
12km and 8km respectively north northeast from the central APTA prospect that
had seen most drilling at Anzá up until early 2022. At PEPAS, holes PEP005
and PEP007 were drilled from the same pad as PEP001 but in different
directions. Both holes returned substantial gold intersections, with the best
at PEP007 being 80.55m @ 3.05g/t Au from surface (including 41.75m @
5.24g/t).Two additional holes are currently underway from new pads in an
attempt to better define the geometry of the mineralised body at Pepas.
· On 2(nd) December 2022, after the period end, the Company announced
assay results from another 4 holes at Pepas, holes PEP002,006,008 and 009.
Holes PEP002 and 006 did not yield significant results. Two new drill pads
were constructed to drill holes PEP008 and PEP009. Both holes intersected
mineralised structures, largely as expected, but with lower levels of gold
mineralisation than intersected in previous drilling. Near term focus will now
shift away from drilling to focus on field mapping, sampling and trenching
activities will continue across the Project to define further drilling
targets, including additional surface works specifically in the Pepas prospect
area.
· On 17 January 2023, the Company announced that negotiations to
complete the Mining Company Constituent Documents with Minera Monte Aguila are
progressing and that the US$2 million Phase 2 Payment will be paid soon. The
formation of the new Mining Company, which will take several months, is
underway. Once formed, the Mining Company will be owned 49% by Orosur and 51%
by Minera Monte Aguila who will also be the manager. MMA may earn an
additional 14% ownership in the Mining Company if it has spent US$20
million in qualifying exploration expenditures on the Project on or prior to
the fourth anniversary of the parties entering into the Mining Company
Constituent Documents. If the Phase 2 earn-in is completed, MMA would own 65%
of the Mining Company and the Company would own the remaining 35%.
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 has successfully finalised the
reclamation and remediation works on the tailings dam and has now started a
one-year post-closure control phase.
· During the course of the year, Loryser agreed and paid for the
settlements with all of its former employees, with the proceeds received from
the sale of certain of its assets.
· 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 30(th) November 2022, the Company had a cash balance of US$2,906k
(31(st) May 2022, US$4,221k). As at the date of this announcement the Company
had a cash balance of US$3,549k.
· Post the period end, on 7(th) December 2022, all of the outstanding
10,897,058 warrants expired and so the fully diluted share capital of the
Company as at the date of this announcement is 199,885,299.
For further information, visit www.orosur.ca (http://www.orosur.ca) , follow
on twitter @orosurm or 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 / 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 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 has discontinued operations in
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. 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.
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 Ltd and a
qualified person as defined by National Instrument 43-101. Orosur Mining staff
follow standard operating and quality assurance procedures to ensure that
sampling techniques and sample results meet international reporting standards.
Drill core is split in half over widths that vary between 0.3m and 2m,
depending upon the geological domain. One half is kept on site in the Minera
Anzá core storage facility, with the other sent for assay. Industry standard
QAQC protocols are put in place with approximately 20% of total submitted
samples being blanks, repeats or Certified Reference Materials (CRMs).
Samples are sent to the Medellin preparation facility of ALS Colombia Ltd, and
then to the ISO 9001 certified ALS Chemex laboratory in Lima, Peru. 30 gram
nominal weight samples are then subject to fire assay and AAS analysis for
gold with gravimetric re-finish for overlimit assays of >10g/t. ICP-MS
Ultra-Trace level multi-element four-acid digest analyses is also undertaken
for such elements as silver, copper, lead and zinc, etc.Gold intersections are
reported using a lower cut-off of 0.3g/t Au over 3m.
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Financial Position (Expressed in
thousands of United States dollars)
Unaudited
As at As at
November 30, May 31,
2022 2022
ASSETS
Current assets
Cash and cash equivalents $ 2,906 $ 4,221
Restricted cash 83 353
Accounts receivable and other assets 155 186
Assets held for sale in Uruguay 2,390 1,160
Total current assets 5,534 5,920
Non-current assets
Property, plant and equipment 92 113
Exploration and evaluation assets Colombia 4,602 5,441
Total assets $ 10,228 $ 11,474
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 258 $ 389
Liabilities of Chile discontinued operation 2,102 2,058
Warrant liability - 168
Liabilities held for sale in Uruguay 12,998 13,134
Total current liabilities 15,358 15,749
Deficit
Share capital 69,341 69,339
Contributed surplus 10,539 10,540
Currency translation reserve (3,060) (2,125)
Deficit (81,950) (82,029)
Total deficit (5,130) (4,275)
Total liabilities and deficit $ 10,165 $ 11,474
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Loss and Comprehensive Income and
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,
2022 2021 2022 2021
Operating expenses
Corporate and administrative expenses $ $ (565) $ (843) $ (885)
(436)
Exploration (10) (247) (10)
expenses
(185)
Share-based (147) - (315)
compensation
-
Other 1 8 2
income
2
Net finance (2) (5) (3)
cost
(3)
Gain on fair value of warrants 501 168 873
92
Foreign exchange (loss) gain (33) (52) (102)
net
(13)
Net (loss) for the period for continued operations $ (543) Other $ (255) $ (971) $ (440)
comprehensive (loss) income:
Cumulative translation
adjustment $ (430) $ 7 $ (935) $ (194)
Total comprehensive (loss) for the period from continued operations
(973) (248) (1,906) (634)
Income (loss) from discontinued operations 979 1,601 1,050 58
Total comprehensive income (loss) for the period 6 1,353 (856) (576)
Basic and diluted net (loss) income per share for continued operations
$ (0.00) $ (0.00) $ (0.01) $ (0.00)
Basic and diluted net (loss) income per share for discontinued operations
$ 0.01 $ 0.01 $ 0.01 $ 0.00
Weighted average number of common shares outstanding
188,552 188,420 188,536 188,420
Orosur Mining Inc.
Consolidated Statements of Cash Flows (Expressed in thousands of United States
dollars)
Three Months Three Months
Ended Ended
November 30, November 31,
2022 2021
Operating activities
Net loss for the year for continued and discontinued operations $ 79 $ (382)
Adjustments for:
Share-based payments - 315
Labour provision adjustments - (1,499)
Obsolescence provision (3,107) (300)
Fair value of warrants (168) (873)
Gain on sale of property, plant and equipment (1,396) (111)
Foreign exchange and other (163) (201)
Changes in non-cash working capital items:
Accounts receivable and other assets (101) (86)
Inventories 3,419 716
Accounts payable and accrued liabilities (37) 981
Net cash used in operating activities (1,474) (1,234)
Investing activities
Increase (decrease) in the restricted cash 270 (719)
Proceeds received for sale of property, plant and equipment 545 111
Environmental rehabilitation provision - (477)
Proceeds received from exploration and option agreement 85 1,077
Exploration and evaluation expenditures (138) (1,619)
Net cash provided by investing activities 761 (2,048)
Financing activities
Proceeds from the sale of treasury shares - 1,140
2 -
Net cash provided by financing activities 2 1,140
Net Change in cash and cash equivalents (711) (2,176)
Net change in cash classified within assets held for sale (604) 547
Cash and cash equivalents, beginning of year 4,221 6,958
Cash and cash equivalents, end of year $ 2,906 $ 5,329
Operating activities
- continued operations (1,533) (1,087)
- discontinued operations 59 (181)
Investing activities
- continued operations 216 (1,682)
- discontinued operations 545 (366)
Financing activities
- continued operations 2 1,140
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