TIDMOMI
RNS Number : 4035C
Orosur Mining Inc
19 October 2020
Orosur Mining Inc . - First Quarter 2021 Results
London, October 19, 2020 . Orosur Mining Inc. ("Orosur" or "the
Company") (TSX: OMI) (AIM: OMI) announces the unaudited results for
the quarter ended August 31, 2020. All dollar figures are stated in
US$ unless otherwise noted. The unaudited condensed financial
statements of the Company for the quarter ended August 31, 2020 and
the related management's discussion and analysis have been filed
and are available for review on the SEDAR website at www.sedar.com
. And they are also available on the Company's website at
www.orosur.ca .
A link to the PDF version of this announcement is also available
here:
http://www.rns-pdf.londonstockexchange.com/rns/4035C_1-2020-10-18.pdf
Highlights
-- As announced on September 3, 2020, an additional cash payment
of $500k, in addition to the $500k received in March 2020, was
received by the Company from Newmont Colombia, in connection with
maintaining its earn-in rights pursuant to the Exploration
Agreement.
-- As announced on 30(th) September 2020, Newmont Corporation,
entered into a Joint Venture with Agnico whereby the two companies
will jointly assume and advance Newmont's prior rights and
obligations with respect to the Anzá Project in Colombia on a 50:50
basis, with Agnico as operator of the Joint Venture which is named
Monte Aguila.
-- Initial funding of approximately $650k was received by Minera
Anzá on October 2, 2020 from Agnico to restart the exploration
program. This funding is to be directed solely to fund exploration
on the Anzá Project for the 12 month period starting September 7,
2020 and is the first contribution of the required US$4m of
expenditure for this 12 month period per the terms of the
Exploration Agreement.
-- This funding is not related to the payment in lieu, for the
shortfall of qualifying expenditure for the previous 12 month
period ended September 6, 2020. The payment in lieu, which amounts
to $582k is payable no later than November 7, 2020.
-- In Uruguay, the Company's wholly owned subsidiary, Loryser,
has focused 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.
-- On August 6, 2020, the Company sold its mining and
exploration permits in the San Gregorio Project area of Uruguay to
Kiwanda Group LLC for an aggregate cash consideration of $550k of
which $250k was received on completion and a further $300k is
payable on August 1, 2021.
-- On August 31, 2020, the Company had a cash balance of $356k
(May 31, 2020 $782k). As at the date of this announcement the
Company had a cash balance of $630k.
-- On July 17, 2020 Brad George was appointed Chief Executive
Officer and Thomas Masney was appointed as a non-executive
director, replacing Ignacio Salazar and HD Lee respectively.
Strategy and outlook
During the first quarter ended August 31, 2020 the Board has
continued to apply its strategic plan to recapitalize and transform
the Company by advancing its Anzá Project in Colombia (with Newmont
and Agnico as partners), whilst progressing other opportunities, as
well as finding a fair solution in Uruguay for all
stakeholders.
As explained above, Newmont, and its new partner in the Anza
project, Agnico, will need to spend $4 million on the Anza project
between now and September 2021,to maintain its earn-in rights in
the project, which should lead to an acceleration in the
exploration and appraisal of the project in the coming year.
In Uruguay, the Company wholly owned subsidiary, Loryser is well
advanced in the sale of its assets in Uruguay and with the
reclamation and remediation of the tailings dam.
F or further information, please contact:
Orosur Mining Inc
Louis Castro, Chairman,
Brad George, CEO
info@orosur.ca
Tel: +1 (778) 373-0100
SP Angel Corporate Finance LLP - Nomad & Broker
Jeff Keating / Caroline Rowe
Tel: +44 (0) 20 3 470 0470
Flagstaff Communications
Tim Thompson
Mark Edwards
Fergus Mellon
orosur@flagstaffcomms.com Tel: +44 (0)207 129 1474
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 .
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 Monte Águila of
those plans, Monte Águila'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
MD&A 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.
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Financial
Position
(Expressed in thousands of United States dollars)
Unaudited
As at As at August 31, May 31,
2020 2020
ASSETS
Current assets
Cash and cash equivalents $ 356 $ 782 Accounts receivable and
other assets 119 130
Assets held for sale of Uruguay 2,891 3,081
Total current assets
3,366 3,993
Non--current assets
Property, plant and equipment 70 72
Exploration and evaluation assets 6,582 6,479
Total assets $ 10,018 $ 10,544
LIABILITIES AND (DEFICIT)
Current liabilities
Accounts payable and accrued liabilities $ 314 $ 313
Liabilities of Chile discontinued operation 2,014 2,010
Liabilities held for sale of Uruguay 18,244 17,389
Total current liabilities 20,572 19,712
Deficit
Share capital 65,670 65,670
Shares held by Trust (380) (380)
Contributed surplus 5,991 5,987
Currency translation reserve (2,050) (2,016)
Deficit (79,785) (78,429)
Total deficit (10,554) (9,168)
Total liabilities and deficit $ 10,018 $ 10,544
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Loss and
Comprehensive Loss
(Expressed in thousands of United States dollars)
Unaudited
Three Months Three Months
Ended Ended
August 31, August 31,
2020 2019
(Restated
Note 1)
Operating expenses
Corporate and administrative expenses $ 253) $ (362)
Exploration expenses (21) (38)
Other income 8 -
Net finance cost (1) (1)
Loss on fair value of financial instrument - (12)
Net foreign exchange loss (14) 3
Net loss for the period for continued operations $
(281) $ (410)
Other comprehensive loss
Cumulative translation adjustment $ (34) $ (117)
Total comprehensive loss for the period
from continued operations (315) (527)
Income (loss) from discontinued operations (1,075) 117
Total comprehensive loss for the period (1,390) (410)
Basic and diluted net loss per share for continued operations $
(0.00) $
(0.00)
Basic and diluted net loss per share for discontinued
operations
$ (0.01) $ 0.00
Weighted average number of common shares
outstanding 160,278 150,278
Orosur Mining Inc.
Condensed Interim Consolidated Statements of Cash Flows
(Expressed in thousands of United States dollars)
Unaudited
Three Months Three Months
Ended Ended
August 31, August 31,
2020 2019
(Restated
Note 1)
Operating activities
Net loss for the period $ (1,356) $ (293)
Adjustments for:
Share--based payments 4 6
Fair value of financial instrument - 12
Gain on sale of property, plant and equipment (140) (253)
Foreign exchange and other 559 (64)
Changes in non--cash working capital items:
Accounts receivable and other assets (98) 68
Inventories 145 106
Accounts payable and accrued liabilities 316 (453)
Net cash used in operating activities (570) (871)
Investing activities
Proceeds received for sale of property, plant and equipment
140 330
Proceeds received from exploration and option agreement -
500
Exploration and evaluation expenditures (150) (57)
Net cash (used in) provided by investing activities (10) 773
Net Change in cash and cash equivalents (580) (98)
Net change in cash classified within assets held for sale 154
134
Cash and cash equivalents, beginning of period 782 512
Cash and cash equivalents, end of period $ 356 $ 548
Operating activities
-- continued operations (276) (407)
-- discontinued operations (294) (464)
Investing activities
-- continued operations (150) 443
-- discontinued operations 140 330
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