TIDMOMI
Orosur Mining Inc. ("Orosur" or "the Company") (TSX/AIM: OMI), a
South American-focused gold developer and explorer announces the
results for the second quarter ended November 30, 2018 ("Q2 19" or
the "Quarter"). All dollar figures are stated in thousands of US
dollars unless otherwise stated.
HIGHLIGHTS
-- On September 10, 2018, the Company completed several agreements with
Newmont for the Anzá exploration property in Colombia:
The non-brokered private placement of $2 million; and,
An exploration agreement with venture option. The Exploration
and
Option Agreement includes a three-phase earn-in structure
allowing
Newmont to earn up to a 75% ownership interest in the Anzá
Project
by making cash payments to Orosur equaling a total of $4
million
over Phases 1 and 2, spending a minimum of $30 million in
qualifying expenditures over twelve years, and in addition
completing NI 43-101 compliant pre-feasibility and
feasibility
studies.
-- The re-organisation process has been ongoing in Uruguay since June
2018. In August 2018, the Company placed its San Gregorio
mining
operations under care and maintenance. On December 18, 2018,
the
Company announced Loryser had reached a payment plan with
its
creditors (currently signed by approximately 70% of creditors,
by
value). This agreement contemplates that net proceeds from the
sale of
Loryser's assets in Uruguay together with the issuance of 10
million
common shares of Orosur shall fully satisfy all amounts owing
to
Loryser's creditors as well as provide funds for Loryser to
conduct
this process and close operation responsibly. Loryser would
manage the
process, to be completed within two years. The issuance of
common
shares of Orosur is subject to approval of the Toronto Stock
Exchange.
The Agreement is now subject to consideration by the Court and
the
Intervenor, and normal procedures for approval, like public
notice,
which the Company expects to conclude in the first half of 2019.
Once
approved by the Court, the Agreement will be legally binding for
all
the creditors and Loryser's creditor protection status will
cease
together with Intervenor's control over Loryser.
-- During the three months ended November 30, 2018, the Company incurred
a net loss of $1,874 ($252 for the three months ended November
30,
2017), which included care and maintenance costs of $613 at the
San
Gregorio mine, restructuring costs of $645 relating to the
termination
of employees at San Gregorio, and corporate expenses of $639
($749 for
the three months ended November 30, 2017). Gold production
and
revenues ceased in August 2018.
Ignacio Salazar, CEO of Orosur, said:
"After many months of hard and patient work, the Company has
managed to crystalize two deals which provide a platform to
transform Orosur: an agreement in Colombia with Newmont which
provides the structure, financing and technical support to build a
significant project in Anzá, and a significant vote of confidence
from an impressive majority of 70% of the Loryser creditors to our
proposed plan to reach a fair and balanced solution to the
re-organisation proceedings in Uruguay. We are delighted with these
two milestones and very aware of the work in front of us and our
commitment to deliver on both agreements."
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, the ability to
continue operations in Uruguay, and the approval by the Court of
the Agreement in Uruguay, expectations that the Agreement will
become legally binding on all creditors of Loryser and successful
emergence from creditor protection proceedings and Intervenor
control. 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 the outcome of current discussions and
negotiations with respect to the Company's assets in Uruguay, the
results of future exploration in Colombia, and other risks and
uncertainties which are described in Section 8 of the Management's
Discussion and Analysis for the three months ended November 30,
2018 and for the year ended May 31, 2018. The Company's continuance
as a going concern is dependent upon its ability to obtain adequate
financing and to reach profitable levels of operations. 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. Although the Company has been successful in the past
in obtaining financing there is no assurance that it will be able
to obtain adequate financing in future or that such financing will
be on terms advantageous to the Company. 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. (TSX: OMI; AIM: OMI) is a precious metals
developer and explorer focused on identifying and advancing gold
projects in South America. The Company operates in Colombia and
Uruguay.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulation ("MAR"). Upon the publication of this
announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain. If you
have any queries on this, then please contact Ryan Cohen, VP
Corporate Development and Interim CFO of the Company (responsible
for arranging release of this announcement on behalf of the
Company) on: +1 (778) 373-0100.
Orosur Mining Inc.
Condensed Interim Consolidated Statements
of Financial Position
Thousands of United States Dollars,
except where indicated
As at As at
November 30, May 31,
2018 ($) 2018 ($)
Assets
Cash 1,047 1,390
Accounts receivable and other assets 718 1,550
Accounts held for sale - 120
Inventories 5,357 6,100
Total current assets 7,122 9,160
Accounts receivable and other assets 73 73
Property plant and equipment 3,490 6,578
and development costs
Exploration and evaluation costs 9,354 9,755
Restricted cash 194 201
Total non-current assets 13,111 16,607
Total assets 20,233 25,767
Liabilities and Shareholders' Equity
Trade payables and accrued liabilities 19,331 17,845
Current portion of long-term debt 1,711 1,730
Warrants 89 68
Environmental rehabilitation provision 139 139
Total current liabilities 21,270 19,782
Long-term debt 211 211
Environmental rehabilitation provision 5,236 5,283
Total non-current liabilities 5,447 5,494
Total liabilities 26,717 25,276
Capital stock 65,290 63,290
Contributed surplus 5,929 5,893
Deficit (76,042 ) (67,780 )
Currency translation reserve (1,661 ) (912 )
Total shareholders' equity (deficit) (6,484 ) 491
Total liabilities and shareholders' equity 20,233 25,767
Orosur Mining Inc.
Condensed Interim
Consolidated
Statements of
Loss
and Comprehensive
Income/(Loss)
Thousands of United
States Dollars,
except for loss per
share amounts
Three months ended Six months ended
November 30, November 30,
2018 ($) 2017 ($) 2018 ($) 2017 ($)
Sales - 9,028 4,202 20,979
Cost of sales - (7,708 ) (7,119 ) (19,480 )
Gross profit - 1,320 (2,917 ) 1,499
Corporate (639 ) (749 ) (1,041 ) (1,249 )
and administrative
expenses
Exploration expenses (18 ) - (162 ) (145 )
Exploration expenses (27 ) (17 ) (93 ) (26 )
and written off
Care and maintenance (613 ) - (613 ) -
expenses
Restructuring costs (645 ) (750 ) (3,967 ) (810 )
Obsolescence provision (5 ) (9 ) (5 ) (45 )
Other income 218 1 299 130
Net finance cost (28 ) (59 ) (70 ) (146 )
Loss on fair value (42 ) - (21 ) (10 )
of financial
instruments, net
Foreign exchange (75 ) 11 329 263
gain (loss)
(1,874 ) (1,572 ) (5,344 ) (2,038 )
Loss before income tax (1,874 ) (252 ) (8,261 ) (539 )
Provision for - 1 - (2 )
income taxes
Total loss for (1,874 ) (251 ) (8,261 ) (541 )
the period
Other comprehensive
(loss) income
Cumulative translation (559 ) 142 (749 ) (136 )
adjustment
Total comprehensive (2,433 ) (109 ) (9,010 ) (677 )
loss
for the period
Basic and diluted net (0.02 ) (0.00 ) (0.07 ) (0.01 )
loss per share
Orosur Mining Inc.
Condensed Interim Consolidated
Statements of Cash Flows
Thousands of United States Dollars,
except where indicated
Six months ended
November 30,
2018 ($) 2017 ($)
Net inflow (outflow) of cash related
to the following activities
Cash flow from operating activities
Net Loss for the period (8,261 ) (542 )
Adjustments to reconcile net income to net
cash provided from operating activities:
Depreciation 3,345 4,064
Exploration and evaluation expense written off 93 26
Obsolescence provision 5 45
Fair value of derivatives 13 (20 )
Stock based compensation 36 44
Accretion of asset retirement obligation 19 38
Loss (gain) on sale of property, 14 (61 )
plant and equipment
Other 53 20
Subtotal (4,683 ) 3,614
Changes in working capital:
Accounts receivable and other assets 758 29
Inventories 737 656
Trade payables and other accrued liabilities 1,541 (360 )
Net cash generated (used in) (1,647 ) 3,939
from operating activities
Cash flow from financing activities
Loan payments (19 ) (129 )
Investment in Anillo - 69
Proceeds from sale of Talca 60 -
Loans received - 1,500
Proceeds from private placement 2,000 2,894
Net cash generated from financing activities 2,041 4,334
Cash flow from investing activities
Purchase of property, pland and equipment (269 ) (6,164 )
and development costs
Environmental tasks (66 ) (95 )
Proceeds from the sale of fixed assets - 10
Exploration and evaluation expenditure assets (402 ) (3,317 )
Net cash used in investing activities (737 ) (9,566 )
Decrease in cash (343 ) (1,293 )
Cash at the beginning of period 1,390 3,357
Cash at the end of period 1,047 2,064
For further information, please contact:
Orosur Mining IncIgnacio Salazar, Chief Executive OfficerRyan
Cohen, VP Corporate Development & Interim CFOinfo@orosur.caTel:
+1 (778) 373-0100
Cantor Fitzgerald Europe - Nomad & Joint BrokerDavid
Porter/Keith DowsingTel: +44 (0) 20 7894 7000
Numis Securities Limited - Joint BrokerJohn Prior / James Black
/ Paul GillamTel: +44 (0) 20 7260 1000
View source version on businesswire.com:
https://www.businesswire.com/news/home/20190114005868/en/
This information is provided by Business Wire
(END) Dow Jones Newswires
January 15, 2019 02:00 ET (07:00 GMT)
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