TIDMOMI
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
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
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 i ncluded 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
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 Three Months Nine Months Nine Months
Ended Ended Ended Ended
February 28, February 28, February February
28, 28,,
2022 2021 2022 2021
Operating expenses
Corporate and administrative expenses $
(444) $ (377) $ (1,329) $ (910)
Exploration expenses (26) (10) (36) (39)
Share-based compensation 41 (859) (274) (867)
Other income - 9 2 20
Net finance cost (3) (3) (6) (6)
Gain on fair value of warrants 428 (61) 1,301 (61)
Net foreign exchange gain (33) 135 (135) 152
------------------------------------------------------------------------------------------ -------------------- ------------------------ ----------------------
Net (loss) for the period for continued
operations $ (37) $ (1,166) $ (477) $ (1.711)
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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