Orosur Signs Anillo Option Agreement
Orosur Signs Anillo Option Agreement
Orosur Mining Inc.
Orosur Mining Inc. (“Orosur” or the “Company”) (TSX:OMI) (AIM:OMI), a South American-focused gold producer, developer and explorer is pleased to announce that following the announcement dated 19 November 2014, the Company has signed the definitive option agreement (the “Agreement”) with Asset Chile Exploración Minera Fondo de Inversión Privado (“AC”) in relation to the Company’s Anillo Project in northern Chile.
The Agreement states that AC may earn up to a 40% interest in Orosur’s interest in Anillo (the “Transaction”) pursuant to the following phased earn-in milestones (“Option”):
| Units | Phase 1 | Phase 2 | Phase 3 | Total | ||||||
| Funding | ||||||||||
| Orosur Funding | US$ | $100,000 | $200,000 | - | $300,000 | |||||
| AC Funding | US$ | $850,000 | $1,250,000 | $1,375,000 | $3,475,000 | |||||
| Net Interest¹ | ||||||||||
| Orosur Interest | % | 84.0% | 67.5% | 60.0% | 60.0% | |||||
| AC Interest | % | 16.0% | 32.5% | 40.0% | 40.0% | |||||
| Exploration | ||||||||||
| Drilling | Metres | 3,600 | 5,500 | |||||||
| Timing | Months | 10 | 18 | |||||||
| Note 1: Orosur’s option agreement with Corporación Nacional del Cobre de Chile (“Codelco”) enables it to earn a 65% interest in Anillo by spending in excess of US$3 million (which has now been completed) and completing a Feasibility Study (“FS”) prior to January 2020, which may be extended by Codelco for a further two years to January 2022 if Orosur has a discovery and has defined a mineral resource by 2020. | ||||||||||
Ignacio Salazar, CEO of Orosur, said:
“We are delighted to have entered into this Agreement with Asset Chile to option a minority share in our interest in the Anillo project. The Agreement enables Asset Chile to spend up to US$3.5 million in three phases option as well as committing exploration expenditures in order to earn up to 40% of Orosur’s interestin the Project.
This transaction is non-dilutive to Orosur shareholders and enables us to progress a solid exploration program at Anillo for the next three years with limited capital requirements by the Company.
We are looking forward to working with Asset Chile as partners in our exploration efforts at Anillo and to the results of the program ahead. We appreciate the support of Codelco to the transaction.”
Orosur has incorporated a new wholly owned subsidiary of Fortune Valley Resources, Inc., Anillo SPA (“Anillo SPA”) and has transfered the Codelco option agreement to Anillo SPA. AC has subscribed for an initial amount of Anillo SPA common shares (the “Shares”) equal to the 16% of the capital of the Anillo SPA for gross proceeds of US$850,000. From the date of execution of the definitive option agreements, AC has 40 days to get CORFO support and to contribute the Phase 1 funding totaling $850,000. AC has the further option to elect to earn into up to 32.5% and up to 40%, by funding an additional US$1,250,000 and up to US$1,375,000, pursuant to the Option outlined above.
Within 60 days of completion of the Phase 1 and Phase 2 exploration programmes, respectively, AC will have the obligation to notify Orosur in writing of its decision to elect to proceed. Should AC not fund the purchase of common shares in Phase 2, its interest in Anillo SPA shall be cancelled.
The Agreement contains terms to provide that Orosur will remain the operator of Anillo and that each of Orosur and AC, as shareholders of Anillo SPA, will be equally represented on the Board of Directors of Anillo SPA and on the technical committee, each comprising four members. All funding proceeds would be used to perform exploration activities and studies as directed and agreed by the technical committee and shall be focused on generating a discovery at Anillo.
Phase 1 exploration shall include a geophysics campaign and a minimum of 3,600 metres of Reverse Circulation (“RC”) drilling and have an estimated duration of up to 10 months. Phase 2 shall include an additional geophysics campaign and a minimum of 5,500 metres of RC drilling and have an estimated duration of up to 18 months. Phase 3 shall include further geophysical work and additional RC drilling and have an estimated duration of up to 18 months.
About Asset Chile
Asset Chile is a Chilean investment bank, market leader in mergers and acquisitions, financing and asset management group with over 30 years of experience and special emphasis in the mining, infrastructure, energy and forestry sectors. In 2011, Asset Chile created a mining exploration fund with initial funds under management of US$25 million. The fund is part of the “Fenix” program sponsored by CORFO and the Chilean Ministry of Mines. The fund’s business model is to finance exploration works of reputable mid and small size mining operators with attractive tenements. CORFO is the Industrial Promotion Corporation from the Chilean Government.
For more information please visit www.orosur.ca
Forward Looking Statements
This news release contains forward looking information including information as to the completion of the Transaction, funding under the Option, timing of entering into definitive documentation; and future financial or operating performance of the Company. There can be no assurance that such statements will prove to be accurate, such statements are subject to significant risks, uncertainties and other factors and actual results and future events could differ materially from those anticipated in such statements. Such factors include, among others, negotiating definitive documentation, satisfying conditions to closing the proposed Transaction, success of exploration activities; permitting time lines; the failure of plant; equipment or processes to operate as anticipated; accidents; labour disputes; requirements for additional capital, title disputes or claims and limitations on insurance coverage. 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.
About Orosur Mining Inc.
Orosur Mining Inc. is a fully integrated gold producer, developer and exploration company focused on identifying and advancing gold projects in South America. The Company operates the only producing gold mine in Uruguay (San Gregorio), and has assembled an exploration portfolio of high quality assets in Uruguay, Chile and Colombia. The Company is quoted in Canada (TSX:OMI) and London (AIM:OMI).
Orosur Mining Inc.
Ignacio Salazar, + 562 2924 6800
Chief
Executive Officer
info@orosur.ca
or
Cantor
Fitzgerald Europe
Stewart Dickson / Jeremy Stephenson,
+44
(0) 20 7894 7000
or
FTI Consulting
Ben Brewerton /
Oliver Winters / Sara Powell
+44 (0) 20 3727 1000
View source version on businesswire.com: http://www.businesswire.com/news/home/20150607005023/en/
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