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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January 31, 2022 01:59 ET (06:59 GMT)

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