REG - Orosur Mining Inc - Third Quarter Results for 2021/22
29/04/2022 07:00
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RNS Number : 7831J Orosur Mining Inc 29 April 2022
Orosur Mining Inc.
Third Quarter Results for 2021/22
London, April 29th, 2022. Orosur Mining Inc. ("Orosur" or "the Company")
(TSXV/AIM: OMI), a South American-focused minerals explorer and developer, is
pleased to announce the results for the third quarter ended February 28th,
2022 ("Q3 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 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/7831J_1-2022-4-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7831J_1-2022-4-28.pdf)
A link to the PDF version of the MDA is available here:
http://www.rns-pdf.londonstockexchange.com/rns/7831J_2-2022-4-28.pdf
(http://www.rns-pdf.londonstockexchange.com/rns/7831J_2-2022-4-28.pdf)
Highlights of the Third Quarter Results for 2021/22
Colombia
· Post the period end, on March 8(th),2022, the Company reported
the results of assays from four additional holes - MAP- 097, 098, 099, 100.The
holes encountered high grade gold intersections - 6.06m @ 2.72g/t Au, 14.2m @
1.84 g/t Au, 8.35m @ 14.27 g/t Au, and 59.15m @ 0.91 g/t Au and included a
potential new area at depth in Anza. In addition, it was reported that plans
and permitting were being advanced for drilling new targets. That drilling
activity has recently commenced.
Brazil
· On January 14th, 2022 the Company announced that it had signed a
Joint Venture ("JV") agreement with Meridian Mining UK Societas ("Meridian")
(TSXV: MNO) in relation to the Ariquemes tin project ("Project") in the State
of Rondonia, western Brazil. The Project comprises a large collection of
granted tenements and applications, totalling almost 3,000km(2). The licenses
were all accumulated and are wholly owned by Meridian's local subsidiary and
represent the dominant land position in the Rondônia Tin Province, one of the
world's most significant tin regions. Under the JV terms, the Company can earn
an equity interest of 75% in the Project by spending US$3m over a four-year
period, in two phases: Phase 1 - earn 51% interest by spending US$1 million
over a 24-month period; Phase 2 - earn an additional 24% interest by spending
US$2 million over a subsequent 24-month period. Following completion of Phase
2, it is intended the two parties will either jointly fund the Project on a
pro-rata basis or dilute to a net smelter royalty.
Argentina
· On February 15th, 2022 the Company announced that it had signed a
JV agreement ("Agreement") with a private Argentinean company DESEADO DORADO
S.A.S and its shareholders ("Deseado") in relation to the El Pantano
Gold/Silver Project in the Province of Santa Cruz in Argentina ("Gold/Siver
Project").The Agreement covers nine licences owned by Deseado that, combined,
total 607km2 in the prolific Deseado Massif region of Santa Cruz Province in
southern Argentina, roughly 45km from Anglo Gold's Cerro Vanguardia mining
camp. The terms of the Agreement allow for the Company to earn 100% equity in
the Gold/Silver Project by investing US$3m over five years in two phases:
Phase 1 - earn 51% by investing US$1m over an initial 3-year period; Phase 2,-
move to 100% ownership by investing an additional US$2m over a subsequent
2-year period and granting Deseado a residual 2% net smelter return royalty on
the Gold/Silver Project.
Post the period end, the Company announced that its geological teams mobilised
to Santa Cruz Province, Argentina, to commence the Company's first field
exploration program at the El Pantano Gold/Silver Project. This field program
lasted approximately two weeks and involved extensive mapping and surface
sampling (soils and rock chip) programs over the two most attractive
prospects. Results are currently awaited.
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 which is nearing
completion
· 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
is being applied to meet Loryser's obligations under the 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 February 28, 2022, the Company had a cash balance of $4,791k
(May 31, 2021 $6,958k). As at the date of this MD&A, the Company had a
cash balance of $4,478k.
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, Argentina 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
February 28, May 31,
2022 2021
ASSETS
Current assets
Cash and cash equivalents $ 4,791 $ 6,958
Restricted cash 137 1,367
Accounts receivable and other assets 174 201
Assets held for sale in Uruguay 593 2,314
Total current assets 5,395 10,840
Non-current assets
Property, plant and equipment 113 124
Exploration and evaluation assets Colombia 5,351 5,148
Total assets $ 11,159 $ 16,112
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 296 $ 486
Liabilities of Chile discontinued operation 2,060 2,047
Warrant liability 433 1,734
Liabilities held for sale in Uruguay 13,487 16,830
Total current liabilities 16,276 21,097
Deficit
Share capital 69,333 69,333
Shares held by Trust (72) (165)
Contributed surplus 9,491 8,591
Currency translation reserve (2,159) (1,826)
Deficit (81,710) (80,918)
Total deficit (5,117) (4,985)
Total liabilities and deficit $ 11,159 $ 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 Nine Months Ended Nine Months Ended
February 28, February 28, February 28, February 28,,
2022 2021 2022 2021
Operating expenses
Corporate and administrative expenses $ (377) $ (1,329) $ (910)
$ (444)
Exploration (10) (36) (39)
expenses
(26)
Share-based (859) (274) (867)
compensation
41
Other 9 2 20
income
-
Net finance (3) (6) (6)
cost
(3)
Gain on fair value of warrants (61) 1,301 (61)
428
Net foreign exchange gain 135 (135) 152
(33)
Net (loss) for the period for continued operations $ $ (1,166) $ (477) $ (1.711)
(37)
Other comprehensive income (loss):
Cumulative translation adjustment $ (139) $ (24) $ (333) $ 133
Total comprehensive (loss) for the period from continued operations
(176) (1,190) (810) (1,578)
Income (loss) income from discontinued
operations (329) (70) (315) (1,549)
Total comprehensive income (loss) for the period (505) (1,260) (1,125) (3,127)
Basic and diluted net (loss) income per share for continued operations
$ (0.00) $ (0.01) $ (0.00) $ (0.01)
Basic and diluted net (loss) income per share for discontinued operations
$ 0.00 $ (0.00) $ 0.00 $ (0.01)
Weighted average number of common shares outstanding
188,420 185,392 188,420 168,917
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
Unaudited
Nine Months Nine Months
Ended Ended
February 28, February 28,,
2022 2021
Operating activities
Net (loss) for the period for continued and discontinued operations $ (792) $ (3,260)
Adjustments for:
Share-based compensation 274 867
Labor provision adjustments (1,600) -
Obsolescence provision (1,100) (100)
Fair value of warrants (1,301) 61
Gain on sale of property, plant and equipment (230) (400)
Foreign exchange and other (56) 1,472
Changes in non-cash working capital items:
Accounts receivable and other assets 51 (14)
Inventories 1,504 1,356
Accounts payable and accrued liabilities 920 (791)
Net cash used in operating activities (2,218) (809)
Investing activities
Increase in the restricted cash (719) -
Proceeds received for sale of property, plant and equipment 746 461
Environmental tasks (1,100) (61)
Proceeds received from exploration and option agreement 1,266 2,893
Exploration and evaluation expenditures (1,630) (1,540)
Net cash (used in) provided by investing activities (1,437) 1,753
Financing activities
Issue of common shares - 4,978
Proceeds from the sale of treasury shares 719
Proceeds from exercise of options 437
Proceeds from exercise of options - 282
Net cash provided by financing activities 719 5,687
Net Change in cash and cash equivalents (2,936) 6,641
Net change in cash classified within assets held for sale 769 (417)
Cash and cash equivalents, beginning of period 6,958 782
Cash and cash equivalents, end of period $ 4,791 $ 7,006
Operating activities
- continued operations (1,803) (765)
- discontinued operations (415) (44)
Investing activities
- continued operations (1,083) 1,292
- discontinued operations (354) 461
Financing activities
- continued operations 719 5,697
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