TIDMOMI
Orosur Mining Inc. ("Orosur" or "the Company") (TSX/AIM: OMI), a
South American-focused gold developer and explorer, is pleased to
announce the results for the third quarter ended February 29, 2020
("Q3 20" or the "Quarter") as well as the appointment of Louis
Castro, aged 61, as Chairman and Non-Executive Director of the
Company to replace Robert Schafer, who has retired from the
Company's board.
HIGHLIGHTS
-- In accordance with the Exploration Agreement with Venture Option over the
Anzá project in Colombia (the "Exploration Agreement") with Newmont
Colombia S.A.S. ("Newmont"), Newmont made a cash payment of US$690k to
Minera Anzá in November 2019 to cover its outstanding commitments
for the first Year of the Exploration Agreement (September 2018 to
September 2019) and to maintain its phase 1 earn-in rights.
-- In Uruguay, the Creditors Agreement was finally approved by the Court in
September 2019 and, as a result, became legally binding on all trade
creditors. During Q3 20, Loryser focused its activities in the
implementation of the Creditors Agreement and the sale of its Uruguayan
assets. As agreed in the Creditors Agreement, on December 19, 2019,
Orosur issued 10,000,000 common shares to a trust for the benefit of
Loryser's creditors.
-- As at February 29, 2020, the Company had a cash balance of US$463k (May
31, 2019 - US$512k).
-- After the end of the Q3 20, as previously announced on March 5, 2020, an
additional cash payment of US$500k was received by the Company from
Newmont, in connection with maintaining its earn-in rights pursuant to
the Exploration Agreement.
-- Assets held for sale in Uruguay have been recorded in this quarter and in
the FY19 consolidated financial statements at the lower of book value or
fair value. The consolidated financial statements were 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 and Profit and Loss from discontinuing
operations. This accounting treatment has been applied to the activities
in Uruguay and Chile.
Outlook and Strategy
The Board adopted an aggressive strategic plan to restructure
its business, and recapitalize and transform the Company by
advancing its Anzá project in Colombia (now with Newmont as a
partner), whilst progressing other opportunities, as well as
finding a fair solution in Uruguay for all stakeholders. This
strategy remains unchanged.
In Colombia, Newmont met its Year 1 commitments and payments
pursuant to the Exploration Agreement. In March 2020, Newmont made
the third US$500k cash payment to Orosur with the fourth and final
payment of this sort expected in September 2020.
In Phase 1, Newmont may earn a 51% ownership interest in Anzá by
spending US$10 million in qualifying expenditures over four years
and making cash payments to Orosur equalling a total of US$2
million during the first two years of the Phase 1 earn-in period.
During the first two years of the Exploration Agreement (commencing
September 2018), Newmont is committed to spend a minimum of US$1
million per year on qualifying expenditures ("Minimum Work
Commitment"), or pay Orosur cash in lieu of completing said minimum
work commitment, in order to maintain the Phase 1 earn-in right. In
years 3 and 4, the Minimum Work Commitment increases to US$4
million per year.
The Exploration Agreement comprises 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 US$4 million over Phases 1 and 2, spending a minimum of
US$30 million in qualifying expenditures over twelve years, and in
addition completing N.I. 43-101 compliant prefeasibility and
feasibility studies through the end of Phase 3.
In Uruguay, Loryser is focusing its activities in the
implementation of the Creditors Agreement. 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 in September 2019.
Board Changes
Louis Castro has been appointed Chairman and Non-Executive
Director of the Company replacing Bob Schafer, who has retired from
the Company's board.
Mr. Castro is a chartered accountant and former investment
banker with more than 30 years' City and industry experience. Louis
is a non-executive director and Chairman of the Audit Committee at
Stanley Gibbons Group plc, Jangada Mines plc and Tekcapital plc. He
was previously CFO at Eland Oil and Gas, an AIM listed upstream
company operating in Nigeria, and CEO at Northland Capital Partners
investment bank and broker, where he represented a significant
number of mining and oil & gas clients, including clients in
South America.
Mr. Schafer joined the Board of Orosur in June 2018. He has
recently been elected as President of the US-based "Society for
Mining, Metallurgy and Exploration" ("SME") and is focusing his
time in this new role.
Ignacio Salazar, CEO of Orosur, commented:
"We are pleased to announce the appointment of Louis to the
Orosur's Board and welcome his proven track record in the industry
and in capital markets over decades. Louis' significant experience
is of notable value given the Company's focus on advancing the Anzá
Project in Colombia whilst progressing other opportunities. It is
with great regret that the Board has accepted Mr. Schafer's
decision to retire. We wish him all the best in his professional
and personal endeavours and thank him for his service to the
Company and its shareholders."
For further information, please contact:
Orosur Mining Inc
Ignacio Salazar, Chief Executive Officer
Ryan Cohen, VP Corporate Development
info@orosur.ca
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP -- Nomad & Joint Broker
Jeff Keating / Caroline Rowe
Tel: +44 (0) 20 3 470 0470
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.
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 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 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.
Regulatory Disclosures
The following disclosures are required regarding Louis Emmanuel
Castro's appointment pursuant to Rule 17 and Schedule Two paragraph
(g) of the AIM Rules for Companies:
Current directorships and partnerships:
-- Tekcapital plc
-- Jangada Mines Plc
-- Stanley Gibbons Plc
-- Green Park Petroleum Limited
-- Inception Energy Limited
-- Oryx Management Limited
-- Hollingsworth Minerals Inc.
Past directorships and partnerships held over the last 5
years:
-- Ascent Resources Plc
-- Hallwood Oil & Gas Inc.
-- Eland Oil & Gas Plc
-- Westport Oil Limited
-- Akonic Energy Limited
Louis has no direct or indirect interest in the Company's
ordinary shares.
No further disclosure is required pursuant to AIM Rule 17 and
paragraph (g) to Schedule Two of the AIM Rules for Companies.
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States Dollars)
Unaudited
As at As at
Feb 29, May 31,
2020 2019
ASSETS
Current assets
Cash and cash equivalents $463 $512
Accounts receivable and other assets 536 292
Assets held for sale 3,797 4,452
Total current assets 4,796 5,256
Non--current assets
Property, plant and equipment 80 87
Exploration and evaluation assets 8,310 8,983
Total assets $13,186 $14,326
EQUITY AND LIABILITIES
Current liabilities
Accounts payable and accrued liabilities $295 $235
Warrants - 13
Liabilities held for sale 22,234 23,393
Total liabilities 22,529 23,641
Equity
Share capital 65,670 65,290
Contributed surplus 5,981 5,947
Currency translation reserve (1,922) (1,653)
Total Deficit (79,072) (78,899)
Total (deficit) / equity (9,343) (9,315)
Total (deficit) / equity and liabilities $13,186 $14,326
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
Feb 29, Feb 29, Feb 29, Feb 29,
2020 2019 2020 2019
(Restated) (Restated)
Operating expenses
Corporate and
administrative
expenses ($351) ($332) ($1,061) ($1,165)
Exploration expenses (14) (11) (71) (49)
Other income - - 501 -
Net finance cost 21 1 18 (4)
(Loss) on fair value of
financial instrument (20) (320) (11) (341)
Net foreign exchange
gain/(loss) (6) (2) (16) (30)
(370) (664) (640) (1,589)
Net loss for the period
for continued
operations ($370) ($664) ($640) ($1,589)
Other comprehensive
income (loss)
Cumulative translation
adjustment $- $624 ($269) ($125)
Total comprehensive loss
for the period from
continued operations -370 -40 -909 -1,714
Income (loss) from
discontinued
operations (203) (1,362) 467 (8,698)
Total comprehensive loss
for the period (573) (1,402) (442) (10,412)
Basic and diluted net
loss per share for
continued operations $0.00 $0.00 $0.00 ($0.01)
Basic and diluted net
loss per share for
discontinued
operations $0.00 ($0.01) $0.00 ($0.06)
Weighted average number
of common shares
outstanding 159,618 150,278 153,380 136,774
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
Feb 29, Feb 29,
2020 2019
(Restated)
Operating activities
Net loss for the period ($640) ($1,589)
Adjustments for:
Share--based payments 34 72
Fair value of financial instrument (11) 341
Loss on sale of property, plant and equipment - 12
Other (68) 214
Changes in non--cash working capital items:
Accounts receivable and other assets 133 (73)
Accounts payable and accrued liabilities 60 (264)
Net cash (used in) operating activities -- continued
operations (492) (1,287)
Investing activities
Proceeds received for exploration and evaluation
expenditures 1,030 -
Exploration and evaluation expenditures (577) (419)
Net cash provided by (used in) investing activities
-- continued operations 453 (419)
Financing activities
Issue of common shares - 2,000
Advances to discontinued operations (10) 165
Net cash provided by (used in) financing activities
-- continued operations (10) 2,165
Net change in cash and cash equivalents -- continued
operations (49) 459
Cash and cash equivalents, beginning of period 512 80
Cash and cash equivalents, end of period $463 $539
Net cash provided by (used in) investing activities
-- discontinued operations 73 475
Net cash (used in) operating activities --
discontinued operations (264) (1,598)
Net cash provided by (used in) financing activities
-- discontinued operations 10 34
The accompanying notes to the unaudited condensed interim
consolidated financial statements are an integral part of these
statements.
View source version on businesswire.com:
https://www.businesswire.com/news/home/20200413005525/en/
CONTACT:
Orosur Mining Inc.
SOURCE: Orosur Mining Inc.
Copyright Business Wire 2020
(END) Dow Jones Newswires
April 14, 2020 02:00 ET (06:00 GMT)
Orosur Mining (LSE:OMI)
Historical Stock Chart
From Jun 2024 to Jul 2024
Orosur Mining (LSE:OMI)
Historical Stock Chart
From Jul 2023 to Jul 2024
