TIDMOMI
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
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
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
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 Three Months Six Months Six Months
Ended Ended Ended Ended
November 30, November 30, November November
30, 30,
2021 2020 2021 2020
Operating expenses
Corporate and administrative expenses $
(565) $ (284) $ (885) $ (533)
Exploration expenses (10) (8) (10) (29)
Share-based compensation (147) (4) (315) (8)
Other income 1 3 2 11
Net finance cost (2) (2) (3) (3)
Gain on fair value of warrants 501 - 873 -
Net foreign exchange gain (33) 31 (102) 17
------------------------------------------------------------------------------------------ ------------------------ ------------------------ ------------------------
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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END
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