TIDMOMI
Orosur Mining Inc. ("Orosur" or "the Company") (TSX/AIM: OMI), a
South American-focused gold developer and explorer announces the
results for the third quarter ended February 28, 2019 ("Q3 19" or
the "Quarter").
HIGHLIGHTS
-- In February 2019, Orosur received US$500,000, being the first of four
half yearly cash payments from Newmont Mining Corporation
("Newmont")
as part of the previously announced Exploration Agreement with
Venture
Option for the Anzá project in Colombia.
-- In March 2019, Minera Anzá (Orosur's Colombian subsidiary), received
US$240,000 from Newmont Colombia S.A.S., a subsidiary of
Newmont, to
fund the property maintenance costs in Colombia during the first
6
months of the exploration period (October 2018 to March 2019).
This
occurred after the end of the Quarter and is therefore not
reflected
in the Q3 19 balance sheet.
-- In Uruguay, as previously announced, Loryser SA ("Loryser"), the
Company's largest Uruguayan subsidiary, has received to date
support
from approximately 72% of its creditors by value (comprising
67
different creditors) for its proposed reorganisation agreement
("the
Agreement"). Under the Agreement, Loryser will manage a process,
to be
completed within two years, whereby the net proceeds from the
sale of
assets in Uruguay will be used to reclaim and close
operations
responsibly, and any remaining funds together with the issue of
10
million Orosur common shares will be used to fully satisfy all
amounts
owing to Loryser's creditors.
-- During Q3 2019, Loryser started part of the work included in the
Agreement. This work has included advancing the remediation of
the
tailings dam and dewatering, taking advantage of the summer
months,
approximately 700,000 cubic metres, equivalent to 26 hectares of
the
total 40 hectares covered by the dam. In parallel, Loryser is
starting
to cover the dry area of the tailings dam with gravel.
-- In March 2019, Loryser executed a brokerage agreement with Savona
Equipment Ltd to support the sale of specialized mining
equipment of
the San Gregorio mine, including its CIL plant, in the
international
markets.
-- As previously announced, on March 28, 2019, the Arbitral Tribunal in
Chile rendered its decision, ruling that Fortune Valley
Resources
Chile S.A. ("FVRC") (an indirect, wholly-owned subsidiary of
Orosur)
is required to pay Anglo American Inversiones SA approximately
US$1.6
million plus interest at Chile´s current interest rate
calculated from
December 2015 until its effective payment. The Tribunal's
decision is
exclusively against FVRC. Orosur was not named in the decision
from
the Tribunal. FVRC is evaluating its options with its Chilean
lawyers.
-- At February 28, 2019, the Company had a cash balance of US$1.0 million
of which US$246k is held by Loryser and not accessible to the
Company
(November 30, 2018 - $1.0 million; May 31, 2018 - $1.4
million).
-- On April 12, 2019, Mr. Robert Schafer was formally appointed Chairman
of the Board of Directors.
Ignacio Salazar, CEO of Orosur, said:
"At the end of 2018, the Company managed to close two key
strategic agreements which provide a platform to transform Orosur:
in Colombia with Newmont and with Loryser creditors in Uruguay.The
Company has been working diligently to deliver on both agreements
during last quarter and remains committed to its plan to
restructure its businesses, and recapitalize and transform the
Company."
Outlook and Strategy
During the year ended May 31, 2018, the Board adopted an
aggressive strategic plan to restructure its businesses, and
recapitalize and transform the Company by advancing its operations
in Colombia (now with Newmont as a partner), as well as finding a
fair solution in Uruguay for all stakeholders and reducing its
activities in Chile. The strategy remains unchanged.
In Colombia, Newmont is performing a strategic review of the
Anzá project to define an exploration program in the area in
cooperation with Orosur.
In Uruguay, Loryser has commenced implementing the Agreement
with creditors in anticipation of ratification by the Court. The
reorganisation process and the Agreement are subject to
consideration by the Court and the Intervenor. The process will
continue with the Court confirming that the majorities required for
the Agreement were effectively obtained, to be followed by public
notice of the Agreement to all interested parties. Provided there
is no valid opposition, the ratification process is expected to be
completed by the end of the first half of 2019. Once approved by
the Court, the Agreement will be legally binding on all Loryser's
creditors and Loryser's creditor protection status will cease
together with the Intervenor's control over Loryser.
Orosur Mining Inc., +1 (778) 373-0100Ignacio Salazar, Chief
Executive OfficerRyan Cohen, VP Corporate
Developmentinfo@orosur.caSP Angel Corporate Finance LLP, +44 (0)20
3470 0470Nominated Adviser & Joint BrokerJeff Keating / Stephen
WongNumis Securities Limited, +44 (0) 20 7260 1000Joint BrokerJohn
Prior / James Black / Paul Gillam
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 the funding from
Newmont of those plans, Newmont´s decision to continue with the
option agreement, 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, and the outcome of
the arbitration process in Chile against FV and any effects of that
arbitration´s decision to the Company. 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 those as described in
Section "Risks Factors" of the Management's Discussion and Analysis
for the three months ended February 28, 2019 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. 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 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(Expressed in thousands of United States
Dollars)Unaudited
As at As at
February 28, May 31,
2019 2018
ASSETS
Current assets
Cash and cash equivalents $ 1,033 $ 1,390
Accounts receivable and other assets 928 1,550
Inventories 5,301 6,100
Asset held for sale - 120
Total current assets 7,262 9,160
Non-current assets
Accounts receivable and other assets 73 73
Property, plant and equipment 3,261 6,578
Exploration and evaluation assets 9,724 9,755
Restricted cash 49 201
Total assets $ 20,369 $ 25,767
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 20,500 $ 17,845
Current portion of long-term debt 1,711 1,730
Warrants 409 68
Environmental rehabilitation provision 139 139
Total current liabilities 22,759 19,782
Non-current liabilities
Long-term debt 211 211
Environmental rehabilitation provision 5,248 5,283
Total liabilities 28,218 25,276
Equity
Share capital 65,290 63,290
Contributed surplus 5,965 5,893
Currency translation reserve (1,037) (912)
Deficit (78,067) (67,780)
Total equity (7,849) 491
Total equity and liabilities $ 20,369 $ 25,767
The accompanying notes to the unaudited condensed interim
consolidated financial statements are an integral part of these
statements.
Orosur Mining Inc.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 28, February 28,
2019 2018 2019 2018
Gross profit
(loss)
Sales $ - $ 8,555 $ 4,202 $ 29,534
Cost of - (9,234) (7,119) (28,714)
sales
Gross profit - (679) (2,917) 820
(loss)
Operating
expenses
Corporate (528) (382) (1,569) (1,776)
and
administrative
expenses
Restructuring (81) (597) (4,048) (1,407)
costs
Exploration (28) (6) (121) (32)
written
off
Exploration (1,850) (417) (2,012) (417)
expenses
Obsolescence - 10 (5) (35)
provision
Other income 1,236 92 1,535 222
Net finance (17) (63) (87) (209)
cost
Care (571) - (1,184) -
and
maintenance
Loss on fair (320) - (341) (10)
value of
financial
instrument
Net foreign 133 65 462 328
exchange
gain/(loss)
(2,026) (1,298) (7,370) (3,336)
Loss before (2,026) (1,977) (10,287) (2,516)
income
taxes
Income tax - - - (2)
recovery
Net loss for $ (2,026) $ (1,977) $ (10,287) $ (2,518)
the period
Other
comprehensive
income
(loss)
Items that
will be
reclassified
subsequently
to income
Cumulative $ 624 $ 70 $ (125) $ (66)
translation
adjustment
Other 624 70 (125) (66)
comprehensive
income
(loss) for
the period
Total $ (1,402) $ (1,907) $ (10,412) $ (2,584)
comprehensive
loss
for the
period
Basic and $ (0.01) $ (0.02) $ (0.08) $ (0.02)
diluted
net
loss per
share
Weighted
average
number
of common
shares
outstanding 150,278 117,587 136,774 113,867
The accompanying notes to the unaudited condensed interim
consolidated financial statements are an integral part of these
statements.
Orosur Mining Inc.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,
2019 2018
Operating activities
Net loss for the period $ (10,287) $ (2,518)
Adjustments for:
Depreciation 3,533 5,911
Share-based payments 72 50
Exploration and evaluation 121 32
expenses written off
Obsolescence provision 5 35
Fair value of financial instrument 341 (20)
Accretion of asset retirement obligation 57 57
Gain on sale of property, (902) (65)
plant and equipment
Other 383 (23)
Changes in non-cash working
capital items:
Accounts receivable and other assets 622 234
Inventories 794 397
Accounts payable and accrued liabilities 2,655 2,212
Net cash provided by (used (2,606) 6,302
in) operating activities
Investing activities
Purchase of property, plant and equipment (340) (7,897)
Environmental tasks (92) (114)
Proceeds from sale of fixed assets 938 10
Exploration and evaluation expenditures (510) (4,553)
Net cash used in investing activities (4) (12,554)
Financing activities
Issue of common shares 2,000 2,894
Restricted cash 152 -
Loan payments (19) (176)
Investment in Anillo 120 69
Loans received - 1,500
Net cash provided by financing activities 2,253 4,287
Net change in cash and cash equivalents (357) (1,965)
Cash and cash equivalents, 1,390 3,357
beginning of period
Cash and cash equivalents, end of period $ 1,033 $ 1,392
The accompanying notes to the unaudited condensed interim
consolidated financial statements are an integral part of these
statements.
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(END) Dow Jones Newswires
April 16, 2019 02:00 ET (06:00 GMT)
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