Orosur Mining Inc

Third Quarter Results for 2021/22

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 8th,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 3,000km2. 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

[email protected]

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

[email protected]

 

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,

2022

May 31,

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 Ended

February 28,

February 28,

Nine Months Ended

February 28,

Nine Months Ended

February 28,,

2022

2021

2022

2021

 

Operating expenses

Corporate andadministrativeexpenses  $  (444)

 

 

$  (377)

 

 

$  (1,329)

 

 

$  (910)

Explorationexpenses  (26)

(10)

(36)

(39)

Share-basedcompensation    41

(859)

(274)

(867)

Otherincome  -

9

2

20

Netfinancecost  (3)

(3)

(6)

(6)

Gain on fair value of warrants  428

  (61)

1,301

  (61)

Net foreign exchangegain  (33)

135

(135)

152

Net (loss) for the period for continuedoperations$    (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 theperiod

(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

 

 

-continuedoperations

719

5,697

 

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