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Orosur Mining Inc (OMI)

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Monday 31 January, 2022

Orosur Mining Inc

Second Quarter Results for 2021/22

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

[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 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,

2021

May 31,

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 Ended

November 30,

November 30,

Six Months Ended

November 30,

Six Months Ended

November 30,

2021

2020

2021

2020

 

Operating expenses

Corporate andadministrativeexpenses  $  (565)

 

 

$  (284)

 

 

$  (885)

 

 

$  (533)

Explorationexpenses                                                         (10)

(8)

(10)

(29)

Share-basedcompensation                                               (147)

(4)

(315)

(8)

Otherincome                                                                         1

3

2

11

Netfinancecost                                                                     (2)

(2)

(3)

(3)

Gain on fair value of warrants                                             501

-   

873

Net foreign exchangegain                                                 (33)

31

(102)

17

Net (loss) for the period for continuedoperations$   (255)

$  (264)

$  (440)

$  (545)

 

 

 

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 theperiod

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

 

 

-continuedoperations

1,140

44

 

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