TIDMOMI
Orosur Mining Inc. ("Orosur" or "the Company") (TSX/AIM:OMI), a
South American-focused gold developer and explorer announces its
unaudited results for the first quarter ended August 31, 2019 ("Q1
2020" or the "Quarter").
HIGHLIGHTS
-- In August 2019, Orosur received the second of four half-yearly US$500k cash payments from Newmont Goldcorp ("Newmont") as part of the previously announced Exploration Agreement with Venture Option for the Anzá project in Colombia (the "Exploration Agreement").
-- Newmont has paid US$310k of the US$1 million minimum work commitment for the first year of the Exploration Agreement (ended September 2019) and must meet the shortfall in cash to Orosur by November 7, 2019, in order to maintain its Phase 1 earn-in right.
-- In Uruguay, as announced on September 17, 2019, the Court has approved the payment plan agreement between the Company's wholly owned subsidiary, Loryser SA ("Loryser") and Loryser's creditors (the "Creditors Agreement"). The ratification by the Court means that the Creditors Agreement is legally binding on all creditors and that the intervenor's control over Loryser has ceased.
-- The Creditors Agreement provides that the net proceeds from the sale of Loryser's assets in Uruguay, together with the issuance of 10 million common shares in Orosur, shall fully satisfy all amounts owed by Loryser to its creditors, as well as provide funds for Loryser to conduct this process and manage the orderly closure of its operations. The Creditors Agreement requires Loryser to manage and complete the sale and payment process within two years, starting from the date of the ratification by the Court.
-- The Company has a cash balance of US$548k at August 31, 2019 (May 31, 2019 - US$512k million).
Outlook and Strategy
During the year ended May 31, 2018, the board adopted an
ambitious strategic plan to restructure its business, and
recapitalize and transform the Company by advancing the Anzá
project in Colombia, as well as finding a fair solution in Uruguay
for all stakeholders and reducing its activities in Chile. The
strategy remains unchanged and on course.
In Colombia, the first two years of the Exploration Agreement
(commencing in September 2018) have relatively low minimum work
commitments (US$1 million per year). The minimum work commitment
increases in years 3 and 4, to US$4 million per year. In order to
maintain the Phase 1 earn-in right, there are two additional
semi-annual $500k cash payments due to be paid by Newmont to Orosur
(in March and September 2020), in addition to the payment of $690k
to cover the shortfall of minimum work commitments of Year 1
mentioned above.
In Uruguay, with the Creditors Agreement finally approved by the
Court in September 2019, Loryser already started its
implementation. The successful sale of assets locally in Uruguay
and internationally in cooperation with broker Savona is a key
component to optimizing the outcome with creditors. The Company is
in the process of issuing the 10 million common shares in Orosur
which is subject to the approval of the Toronto Stock Exchange.
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.
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 Exploration
Agreement, Loryser's ability to implement the Creditors Agreement
successfully including approval from the TSX to issue shares as
well as continuation of the business of the Company on 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 Agreement. 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 most
recent Management's Discussion and Analysis and 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.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors that may cause Orosur's actual
results, performance or achievements to be materially different
from any of its future results, performance or achievements
expressed or implied by forward-looking statements. All
forward-looking statements herein are qualified by this cautionary
statement. Accordingly, readers should not place undue reliance on
forward-looking statements.
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 atAugust 31,2019 As atMay 31,2019
ASSETS
Current assets
Cash and cash equivalents $ 548 $ 512
Accounts receivable and other assets 318 292
Assets held for sale 4,096 4,452
Total current assets 4,962 5,256
Non-current assets
Property, plant and equipment 84 87
Exploration and evaluation assets 8,885 8,983
Restricted cash 1 -
Total assets $ 13,932 $ 14,326
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $ 203 $ 235
Warrants 23 13
Liabilities held for sale 22,925 23,393
Total liabilities 23,151 23,641
Equity
Share capital 65,290 65,290
Contributed surplus 5,953 5,947
Currency translation reserve (1,770 ) (1,653 )
Total Deficit (78,692 ) (78,899 )
Total (deficit) / equity (9,219 ) (9,315 )
Total (deficit) / equity and liabilities $ 13,932 $ 14,326
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Income (loss) and Comprehensive Income (loss)
(Expressed in thousands of United States Dollars)
Unaudited
Three MonthsEndedAugust 31,2019 Three MonthsEndedAugust 31,2018
(Restated)
Operating expenses
Corporate and administrative expenses $ (356 ) $ (259 )
Exploration expenses (38 ) (20 )
Other income 500 -
Net finance cost (1 ) (5 )
(Loss) gain on fair value of financial instrument (12 ) 21
Net foreign exchange gain/(loss) 3 (14 )
96 (277 )
Net income (loss) for the period for continuing operations $ 96 $ (277 )
Other comprehensive loss
Cumulative translation adjustment $ (117 ) $ (190 )
Total comprehensive income (loss) for the period from continuing operations (21 ) (467 )
Income (loss) from discontinuing operations 111 (6,108 )
Total comprehensive income (loss) for the period 90 (6,575 )
Basic and diluted net income (loss) per share for continued operations $ 0.00 $ (0.00 )
Basic and diluted net income (loss) per share for discontinued operations $ 0.00 $ (0.05 )
Weighted average number of common shares outstanding 150,278 118,788
Orosur
Mining
Inc.
Condensed
Interim
Consolidated
Statements
of
Cash
Flows
(Expressed
in
thousands
of
United
States
Dollars)
Unaudited
Three MonthsEndedAugust 31,2019 Three MonthsEndedAugust 31,2018
(Restated)
Operating
activities
Net $ 96 $ (277 )
income
(loss)
for the
period
Adjustments
for:
Share-based 6 13
payments
Fair 12 (21 )
value
of
financial
instrument
Gain on - 7
sale
of
property,
plant
and
equipment
Other (5 ) 137
Changes
in
non-cash
working
capital
items:
Accounts 16 9
receivable
and
other
assets
Accounts (32 ) (20 )
payable
and
accrued
liabilities
Net 93 (152 )
cash
provided
by
(used
in)
operating
activities
-
continued
operations
Investing
activities
Exploration (57 ) (167 )
and
evaluation
expenditures
Net (57 ) (167 )
cash
used
in
investing
activities
-
continued
operations
Financing
activities
Issue - 250
of
common
shares
Net - 250
cash
provided
by
financing
activities
-
continued
operations
Net 36 (69 )
change
in
cash
and
cash
equivalents
-
continued
operations
Cash 512 80
and
cash
equivalents,
beginning
of
period
Cash $ 548 $ 11
and
cash
equivalents,
end of
period
Net 330 (318 )
cash
used
in
investing
activities
-
discontinued
operations
Net (468 ) 136
cash
provided
by
(used
in)
operating
activities
-
discontinued
operations
Net - -
cash
provided
by
financing
activities
-
discontinued
operations
Orosur Mining Inc Ignacio Salazar, Chief Executive OfficerRyan
Cohen, VP Corporate Developmentinfo@orosur.ca +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Joint Broker Jeff
Keating / Stephen Wong+44 (0)20 3 470 0470
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(END) Dow Jones Newswires
October 16, 2019 02:00 ET (06:00 GMT)
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