TIDMOMI
Orosur Mining Inc. ("Orosur" or the "Company") (TSX/AIM: OMI), a
South America-focused gold producer, developer and explorer, is
pleased to announce that it has conditionally raised gross proceeds
of approximately C$4.0 million (US$3.2 million) through a placing
and subscription of 16,740,502 new Common Shares of no par value
(the "Subscription Shares" or "New Common Shares") at a price of
C$0.241 (14.7p per share*) per Subscription Share ("Subscription
Price") (together the "Subscription"), together with a grant of
unlisted warrants over new Common Shares ("Subscription Warrants")
on the basis of one Subscription Warrant for every two Subscription
Shares.
Highlights
-- The Subscription Price was negotiated and agreed in principle on
August 1st, 2017 and was based on a 5% premium to the 5-day
VWAP of the Company's shares trading on the TSX ending August
1st,
2017
-- The Subscription was oversubscribed
-- Each full Subscription Warrant entitles the holder to purchase a
Common Share at a price of C$0.337 on or before August 14th,
2020
-- The net proceeds of this Subscription are intended to be deployed for
drilling and associated activities at the Company's highly
prospective
Anzá gold project in Colombia
-- Cash flow from existing operations in Uruguay can now be fully
concentrated on both growing production in Uruguay and extending
life
of mine
-- Concurrent with the financing, the Company is pleased to announce the
appointment of Numis Securities Limited as its joint broker
with
immediate effect alongside its existing nomad and broker,
Cantor
Fitzgerald Europe
Background to and Reasons for the Subscription
As announced on June 20th, 2017, for the year ending May 31st,
2017 the Company produced 35,371 ounces of gold, with operating
cash costs expected to be within its guidance of US$800-US$900 per
ounce. The Company expects production from the San Gregorio mine in
Uruguay for the current financial year to be between 30,000 -
35,000 ounces of gold, with operating costs of US$800 - US$900 per
ounce.
At current gold prices this will allow the Company to continue
to focus on expanding its resource base in Uruguay both from
underground and surface operations, with the aim of increasing its
mine life and/or increasing production by utilising the spare
capacity in the San Gregorio plant**.
The Company also announced in its operational update that it
planned to commence a 15,000 - 30,000 metre drilling campaign in
2017 in Colombia, culminating in the preparation and publishing of
a maiden N.I. 43-101 compliant resource report for the Anzá gold
project ("Anzá"). The net proceeds of this Subscription of US$3.2
million are intended to be deployed for drilling and associated
activities at Anzá, and are budgeted to fund an initial 15,000
metres of diamond drilling.
Ignacio Salazar, CEO of the Company, commented: "The completion
of this financing, which was oversubscribed and at a premium to the
prevailing market when negotiated, is a testament to the quality of
our assets and growth prospects. We are delighted to have two new
institutional shareholders join our shareholder base while limiting
dilution to our existing shareholders. The funds raised should
allow the Company to swiftly commence resource definition drilling
in our high potential Anzá gold project in the Mid Cauca belt of
Colombia. Concurrently, cash flow from existing operations in
Uruguay can be directed to growing our production profile within
the 100 km long greenstone belt we control in Uruguay, as well as
around our existing operating mine and CIL plant. This is aimed at
accelerating progress in the two key growth projects of the
Company."
The Terms of the Subscriptions
Subscription agreements have been entered into with subscribers
pursuant to which the subscribers have conditionally agreed to
purchase in aggregate 16,740,502 new Common Shares of no par value
at a price of C$0.241 per Subscription Share.
The Subscription Shares will be allotted and issued free of all
liens, charges and encumbrances and will, when issued and fully
paid, rank pari passu in all respects with the Company's existing
Common Shares, including the right to receive all dividends and
other distributions declared, made or paid after the date of their
issue.
Completion of the Subscription is subject amongst other things
to the final acceptance of the TSX, and admission of the New Common
Shares to trading on AIM ("Admission"). Application has been made
for the New Common Shares to be admitted to trading on AIM. Subject
to receipt of final acceptance of the TSX, it is expected that
Admission will become effective at 8.00 am (GMT) on or around
August 14th, 2017. If Admission is delayed, any variations to this
timetable will be announced via a Regulatory Information
Service.
Upon Admission, the total number of Common Shares and voting
rights issued and outstanding will be 117,586,905 and the total
number of options and warrants outstanding will be 15,668,344
following the issuance of the Subscription Warrants.
Securities issued under the Subscription will be subject to a
four-month hold expiring on December 14th, 2017 and will become
freely transferable on December 15th, 2017, in accordance with
applicable Canadian securities laws.
The financing was conducted by Cantor Fitzgerald Europe
("Cantor") and Numis Securities Limited ("Numis").
A copy of the Company's latest corporate presentation is
available on the Company's website www.orosur.ca.
*CAD exchange rate as at August 1st, 2017 (1CAD$:0.606GBP)
**Assumes production and operating costs for the San Gregorio
mine are achieved as stated above at prevailing gold price
Principal Terms of the Subscription Warrants
The Subscription Warrants are constituted pursuant to a Warrant
Indenture to be entered into between Computershare Trust Company of
Canada and the Company dated August 14th, 2017.
The principal terms of the Subscription Warrants are as
follows:
a) a holder of Subscription Warrants (a "Warrantholder") will
have the right at any time prior to August 14th, 2020 upon written
notice, to subscribe for new Common Shares (on the basis of one new
Common Share for each Subscription Warrant held, subject to
adjustment) at C$0.337 per Common Share;
b) the Subscription Warrants will be transferable and freely
transferable at any time following the four month hold period;
c) the Subscription Warrants will not be listed or admitted to
trading on any exchange; and
d) the subscription rights under the Subscription Warrants will
be subject to adjustment in the event of various corporate actions
affecting the share capital of the Company.
Appointment of Joint Broker
Concurrent with the financing, the Company is pleased to
announce the appointment of Numis as its joint broker with
immediate effect alongside its existing broker, Cantor. Cantor
continues to serve as the Company's nominated adviser and joint
broker.
For more information, please visit www.orosur.ca.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain. If you
have any queries on this, then please contact Ignacio Salazar,
Chief Executive Officer of the Company (responsible for arranging
release of this announcement) on: +1 (778) 373-0100
Cantor Fitzgerald Europe is the Company's nominated adviser and
joint broker and Numis Securities Limited is the Company's joint
broker. Both Cantor and Numis are authorised and regulated in the
United Kingdom by the Financial Conduct Authority. Cantor's
responsibilities as the Company's nominated adviser under the AIM
Rules for Companies and the AIM Rules for Nominated Advisers are
owed solely to the London Stock Exchange and are not owed to the
Company or to any other person. Cantor and Numis are acting
exclusively for the Company and no one else in connection with the
Subscription, will not regard any other person as a client in
relation to the Subscription and will not be responsible to anyone
other than the Company for providing the protections afforded to
clients of Cantor and Numis (respectively) or for providing advice
in relation to the Subscription or any other matter referred to in
this announcement.
This press release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States. The securities have not been and will not be registered
under the United States Securities Act of 1933, as amended (the
"U.S. Securities Act"), or any state securities laws and may not be
offered or sold within the United States or to or for the account
or benefit of a U.S. person (as defined in Regulation S under the
U.S. Securities Act) unless registered under the U.S. Securities
Act and applicable state securities laws or an exemption from such
registration is available.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer,
developer and explorer focused on identifying and advancing gold
projects in South America. The Company operates the only producing
gold mine in Uruguay (San Gregorio), and has assembled an
exploration portfolio of high quality assets in Uruguay, Chile and
Colombia. The Company is listed in Canada (TSX: OMI) and London
(AIM: OMI). The Company produced 35,371 ounces of gold in the year
ending 31 May 2017, with operating cash costs expected within its
guidance of US$800-US$900 per ounce. The Company expects production
from the San Gregorio mine in Uruguay for the current financial
year to be between 30,000 - 35,000 ounces of gold, with operating
costs of US$800-US$900 per ounce.
The Company will commence a 15,000 - 30,000 metre drilling
campaign in 2017 in Colombia, culminating in the preparation and
publishing of a maiden N.I. 43-101 compliant resource report for
the highly prospective Anzá gold Project in Colombia.
Orosur Mining Inc.Ignacio Salazar, +1 778-373-0100Chief
Executive Officerinfo@orosur.caorCantor Fitzgerald Europe - Nomad
& Joint BrokerDavid Porter/Keith Dowsing, +44 (0) 20 7894
7000orNumis Securities Limited - Joint BrokerJohn Prior / James
Black / Paul Gillam, +44 (0) 20 7260 1000orFTI ConsultingBen
Brewerton / Sara Powell / Emerson Clarke, +44 (0) 20 3727 1000
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(END) Dow Jones Newswires
August 11, 2017 02:00 ET (06:00 GMT)
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