TIDMOMI
RNS Number : 3651V
Orosur Mining Inc
14 April 2021
Orosur Mining Inc.
Third Quarter Results for 2020/21
London, April 14th, 2021. Orosur Mining Inc. ("Orosur" or "the
Company") (TSX/AIM: OMI), a South American-focused gold developer
and explorer, is pleased to announce the results for the third
quarter ended February 28, 2021 ("Q3 21" or the "Quarter"). All
dollar figures are stated in US$ unless otherwise noted. The
unaudited condensed financial statements of the Company for the
quarter ended February 28, 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/3651V_1-2021-4-13.pdf
Highlights of the Third Quarter Results for 2020/21
Colombia
-- On 30th September 2020, Newmont Corporation ("Newmont"),
entered into a Joint Venture ("JV") with Agnico Eagle Mines Limited
("Agnico") whereby the two companies will jointly assume and
advance Newmont's prior rights and obligations with respect to the
Anzá Project in Colombia on a 50:50 basis, with Agnico as operator
of the JV. Agnico's and Newmont's JV vehicle was renamed Minera
Monte Aguila.
-- Following receipt of exploration funds from its JV partner
Minera Monte Aquila, Minera Anzá began the process of
re-establishing its field camp at the Anzá project in readiness for
commencement of field operations. A substantial team of
geoscientists and support staff were recruited to manage the
work.
-- Drilling operations commenced on 15th November 2020 with a
total of 2,994.7m drilled to the end of February 2021, with 2,762m
completed during the quarter.
-- Two announcements were made relating to assay results from
the ongoing drilling campaign - on 25th January 2021 and 22nd
February 2021. Key intersections included:
MAP-072 4.1m @ 6.52g/t Au, 29.73g/t Ag and 0.28% Zn from 108m.
5.90m @ 4.55g/t Au, 2.74g/t Ag and 0.30% Zn from 171.1m, and
70.50m @ 3.53g/t Au, 9.33g/t Ag and 1.62% Zn from 184.80m
MAP-073 21.60m @ 6.02g/t Au, 6.02g/t Ag and 3.23 %Zn from 271.75m
MAP-074 5.20m @ 1.17g/t Au 4.97g/t Ag and 3.02% Zn from 195.40m
MAP-075 19.85m @ 0.90g/t Au 2.17 g/t Ag and 6.46% Zn from 226.15m
MAP-076 12.25m @ 5.39g/t Au, 1.65 g/t Ag and 0.18 % Zn from 228.65m
-- A considerable volume of samples remains at the laboratory of
ALS in Peru, which has experienced substantial delays in turnaround
times due to Covid related staff shortages. These issues are slowly
being resolved and it is anticipated that assay delays will be
reduced in the next quarter.
-- Apart from drilling at the APTA prospect, work commenced on
regional mapping and sampling across the wider lease holding. A
large program of BLEG sampling commenced, which once analysed
should provide vectors to more targeted programs in following
quarters.
-- The Company has commenced work on converting the last of its
secure license applications to granted status so that they can be
accessed for exploration work later in the year.
Uruguay
-- In Uruguay, the Company has focused its activities on the
implementation of the Creditors Agreement, which was approved by
the Court in September 2019, and the sale of the assets of its
Uruguayan subsidiary Loryser. As part of that Agreement, Orosur
issued in December 2019,10,000,000 Orosur common shares to a trust
for the benefit of Loryser's creditors as contemplated in the
court-approved Creditors Agreement.
-- At the same time, and in line with Company's expectations,
during Q3 2020, Loryser signed a Settlement Agreement with DINAMA
(Uruguay environmental agency) in order to recover the $1,326k from
an environmental guarantee it had executed previously. Pursuant to
the Settlement Agreement, Loryser is continuing with the
reclamation of the tailings dam and Dinama will pay in instalments
upon completion of a nine-phased closure plan. The agreement is now
effective after getting final approval from the Audit Tribunal,
which oversees all Governmental accounts. The reclamation is
progressing well. The first of the payments from DINAMA in an
amount of $150k was received by the Company on May 21, 2020 and the
second payment of $269k was received on December 7, 2020.
-- On August 6, 2020, the Company sold its mining and
exploration permits in the San Gregorio Project area of Uruguay to
Kiwanda Group LLC for an aggregate cash consideration of $550k of
which $250k was received on completion and a further $300k is
payable on August 1, 2021.
-- 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
-- On February 28, 2021, the Company had a cash balance of
$7,006k, (May 31, 2020 - $782k) which includes the proceeds from
the private placement and from the exercise of options, both
detailed below. As at April 13, 2021, the Company had a cash
balance of $7,595k.
-- On October 30, 2020, 2,876,670 options were exercised by a
number of employees and former employees
-- On December 7, 2020, the Company completed a private
placement financing consisting of the sale of 23,529,412 units (the
"Units") at 17 pence per Unit for aggregate gross proceeds of GBP4
million ($5,372k). Each Unit consisted of one (1) common share in
the capital stock of the Company ("Common Share") and one-half
(1/2) of one Common Share purchase warrant (each whole warrant, a
"Warrant"). Each Warrant entitles the holder thereof to acquire an
additional Common Share at a price of 25.5 pence for a period of 12
months from the date of issuance.
-- On December 10, 2020, the Company granted an aggregate of
5,600,000 stock options of which 4,300,000 were granted to certain
directors and officers of the Company, at an exercise price of
CAD$0.325 with an expiration date of December 10, 2030. These
options vest 50% immediately and the 50% on December 10, 2021.
-- On January 12, 2021, the Company appointed Mr. Nicholas
(Nick) von Schirnding to the Company's Board as an Independent
Non-Executive Director. The Company also appointed Mr. Louis
Castro, then non-executive chairman of the Company, to the role of
Executive Chairman.
Outlook and Strategy
-- During the period, the Company continued its focus on
developing the potential at Anza and continuing the orderly closure
of its historical operations in Uruguay in accordance with the
court agreed settlement process.
-- Work on both facets of the corporate strategy is progressing
well and the recent capital raising in November 2020 has provided
sufficient balance sheet strength to continue progress.
-- The Company is also examining new business opportunities in
South America, subject to travel limitations caused by the Covid-19
pandemic.
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/Zoe Alexander Tel: +44 (0) 20 3657 0050
Flagstaff 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 Regulation ("MAR " ). Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain .
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a precious metals
developer and explorer focused on identifying and advancing gold
projects in South America. The Company operates in Colombia and
Uruguay.
About the Anzá Project
Anzá is a gold exploration project, comprising three exploration
licenses, four exploration license applications, and several small
exploitation permits, totaling 207.5km2 in the prolific Mid-Cauca
belt of Colombia.
The Anzá Project is located 50km west of Medellin and is easily
accessible by all-weather roads and boasts excellent infrastructure
including water, power, communications and large exploration
camp.
The Anza Project is currently wholly owned by Orosur via its
subsidiary, Minera Anza S.A. The Anza project is subject to an
Exploration Agreement with Venture Option between Orosur's 100%
subsidiary Minera Anza S.A and Minera Monte A guila SAS, a 50/50
joint venture between Newmont Corporation (NYSE:NEM, TSX:NGT), and
Agnico Eagle Mines Limited (NYSE:AEM, TSX:AEM).
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 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.
Orosur Mining Inc.
Condensed Interim Consolidated Statements of
Financial Position (Expressed in thousands of
United States dollars)
Unaudited
------------------------------------------------ ----------------------------------------------------------
As at February As at May 31,
28,
2021 2020
------------------------------------------------ ------------------------------ --------------------------
ASSETS
Current assets
Cash and cash equivalents $ 7,006 $ 782
Accounts receivable and other assets 165 130
Assets held for sale in Uruguay 2,050 3,081
------------------------------------------------ ------------------------------ --------------------------
Total current assets 9,221 3,993
Non-current assets
Property, plant and equipment 128 72
Exploration and evaluation assets Columbia 5,247 6,479
------------------------------------------------ ------------------------------ --------------------------
Total assets $ 14,596 $ 10,544
------------------------------------------------ ------------------------------ --------------------------
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 373 $ 313
Liabilities of Chile discontinued operation 2,063 2,010
Warrants 802 -
Liabilities held for sale in Uruguay 17,833 17,389
------------------------------------------------ ------------------------------ --------------------------
Total current liabilities 21,071 19,712
------------------------------------------------ ------------------------------ --------------------------
Deficit
Share capital 70,671 65,670
Shares held by Trust (325) (380)
Contributed surplus 6,751 5,987
Currency translation reserve (1,883) (2,016)
Deficit (81,689) (78,429)
------------------------------------------------ ------------------------------ --------------------------
Total deficit (6,475) (9,168)
------------------------------------------------ ------------------------------ --------------------------
Total liabilities and deficit $ 14,596 $ 10,544
------------------------------------------------ ------------------------------ --------------------------
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Loss and
Comprehensive Loss (Expressed in thousands of United States
dollars)
Unaudited
Three Months Three Months Nine Months Nine Months
Ended February Ended February Ended February Ended February
28, 29, 28, 29,
------------------------------------------
2021 2020 2021 2020
------------------------------------------ --------------- ---------------- ----------------- ----------------
(Restated (Restated
Operating expenses
Corporate and administrative expenses $ (377) $ (319) $ (910) $ (1,039)
Exploration expenses (10) (14) (39) (71)
Share-based payments (859) (3) (867) (34)
Other income 9 - 20 1
Net finance cost (3) 21 (6) 18
Loss on fair value of warrants (61) (20) (61) (11)
Net foreign exchange loss 135 (9) 152 (16)
------------------------------------------ --------------- ---------------- ----------------- ----------------
Net loss for the period for continued
operations $ (1,166) $ (344) $ (1,711) $ (1,152)
Other comprehensive income (loss)
Cumulative translation adjustment $ (24) $ - $ 133 $ (269)
------------------------------------------ --------------- ---------------- ----------------- ----------------
Total comprehensive loss for the
period from continued operations (1,190) (344) (1,578) (1,421)
Income (loss) from discontinued
operations (66) (198) (1,549) 479
------------------------------------------ --------------- ---------------- ----------------- ----------------
Total comprehensive loss for the
period (1,256) (542) (3,127) (942)
Basic and diluted net loss per
share for
continued operations $ (0.01) $ (0.00) $ (0.01) $ 0.00
Basic and diluted net loss per
share for
discontinued operations $ (0.00) $ (0.00) $ (0.01) $ 0.00
------------------------------------------ --------------- ---------------- ----------------- ----------------
Weighted average number of common
shares
outstanding 185,392 159,618 168,917 153,380
------------------------------------------ --------------- ---------------- ----------------- ----------------
Orosur Mining Inc.
Condensed Interim Consolidated Statements of
Cash Flows (Expressed in thousands of United
States dollars) Unaudited
-------------------------------------------------- -------------------------------------------------
Nine Months Nine Months
Ended Ended
February 28, February
29,
2021 2020
-------------------------------------------------- ---------------------------- -------------------
(Restated)
Operating activities
Net loss for the period $ (3,260) $ (673)
Adjustments for:
Share-based payments 867 34
Obsolescence provision (100) -
Fair value of warrants 61 11
Gain on sale of property, plant and equipment (400) (391)
Foreign exchange and other 1,472 (331)
Changes in non-cash working capital items:
Accounts receivable and other assets (14) 224
Inventories 1,356 316
Accounts payable and accrued liabilities (791) (171)
-------------------------------------------------- ---------------------------- -------------------
Net cash used in operating activities (809) (981)
Investing activities
Proceeds received for sale of property, plant
and equipment 461 468
Purchase of property, plant and equipment (61) -
Environmental tasks - (395)
Proceeds received from exploration and option
agreement 2,893 1,250
Exploration and evaluation expenditures (1,540) (577)
-------------------------------------------------- ---------------------------- -------------------
Net cash provided by investing activities 1,753 746
Financing activities
Issue of common shares 4,978 -
Proceeds from exercise of options 437 -
Proceeds from exercise of warrants 282 -
-------------------------------------------------- ---------------------------- -------------------
Net cash provided by financing activities 5,697 -
-------------------------------------------------- ---------------------------- -------------------
Net Change in cash and cash equivalents 6,641 (235)
Net change in cash classified within assets
held for sale (417) 176
Cash and cash equivalents, beginning of period 782 526
-------------------------------------------------- ---------------------------- -------------------
Cash and cash equivalents, end of period $ 7,006 $ 467
-------------------------------------------------- ---------------------------- -------------------
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END
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