TIDMOMI
RNS Number : 3751E
Orosur Mining Inc
07 July 2021
Orosur Mining Inc - LOI for New Joint Venture, Brazil
London, July 7th, 2021 . Orosur Mining Inc. ("Orosur" or the
"Company") (TSX/AIM:OMI) , announces that it has entered into a
non-binding Letter of Intent (LOI) with Canadian listed Meridian
Mining SE (Meridian) (TSX-V:MNO) in order to finalise a Joint
Venture on Meridian's Ariquemes Tin project (Ariquemes) in
Brazil.
The LOI provides the Company with an exclusivity period of 90
days to complete due diligence and to finalise a JV over Ariquemes,
the broad terms of which have already been discussed between the
parties.
While final terms may differ, it is expected that the Company
will have the right to earn 75% equity in the Ariquemes project
over a four year period (commencing 1(st) Jan 2022) by spending
US$3 million in two stages:
1. Earn 51% interest by spending US$1 million over a 24 month period.
2. Earn an additional 24% interest by spending a further US$2
million over a subsequent 24 month period.
Both parties will work diligently to complete JV negotiations
within the 90 day period and announce full details at that time
however given the non-binding nature of the LOI, shareholders
should note that there is no guarantee that a binding agreement
will be entered into.
For the full PDF version of the announcement with Figures 1 and
2 included, please refer to:
http://www.rns-pdf.londonstockexchange.com/rns/3751E_1-2021-7-6.pdf
Ariquemes
The Ariquemes project comprises a large collection of granted
tenements and applications, totalling almost 3,000km(2) , in
Rhondonia State, western Brazil. The licenses were all accumulated
and owned 100% by Meridian (via its local subsidiary) and represent
the dominant land position in the Rhondonia Tin Province, one of
the world's most significant tin regions.
The region was identified by Meridian following extensive
conceptual work, with later regional work confirming the project's
potential. An extensive database of historical and recent
exploration data is available and has been reviewed by the
Company.
Subsequent to establishing its position in Ariquemes, Meridian
began to deliver exciting drill results from its Cabaçal
Copper/Gold project in the neighbouring state of Mato Grosso, such
that this has now become its primary asset, limiting its ability to
allocate the resources that are required to Ariquemes.
More technical details are available on the Meridian Mining
website and associated SEDAR lodgements.
Figure 1. Ariquemes Project Location (source, Meridian
Mining)
Figure 2. Ariquemes Project Licences (source, Meridian
Mining)
Rationale
The Company has previously noted its interest in exploring new
projects and to that end has been assessing a wide variety of
opportunities over the last 12 months.
With the Anzá project advancing well and being fully funded, the
Orosur Board has taken the strategic decision to leverage the
Company's strong balance sheet, strong technical expertise and
extensive operating capacity in South America by gaining access to
major land positions in key mineralised areas. The Ariquemes
project meets the key selection criteria that had been set:
-- Early stage, but with positive geological indicators
-- Located in a key producing region with proven prospectivity
-- Largest possible land holding (almost 3,000km2)
-- Attractive commodity (the tin price has almost doubled in the
last 12 months to almost $33,000/t)
-- Zero entry cost and low operating cost.
The Company has substantial experience of operating in Brazil
with several of its board and technical staff having spent many
years managing exploration projects and exploration companies
across the country. It is therefore anticipated that expansion into
Brazil can be undertaken with little additional overhead cost.
Orosur CEO Brad George commented:
"With Anzá moving forward positively, the Company is now well
supported and with a strong balance sheet. We feel then that it is
time to start to build our project portfolio with other high
quality assets that broaden our geographical and commodity exposure
and potentially give us enhanced optionality going forward.
Ariquemes is an outstanding opportunity, built up by high quality
geological work by Meridian, and available for the right
reasons".
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 & Joint Broker
Jeff Keating / Caroline Rowe
Tel: +44 (0) 20 3 470 0470
Turner Pope Investments (TPI) Ltd - Joint Broker
Andy Thacker / James Pope
Tel: +44 (0)20 3657 0050
Flagstaff Communications and Investor Communications
Tim Thompson
Mark Edwards
Fergus Mellon
orosur@flagstaffcomms.com
Tel: +44 (0)207 129 1474
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 .
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 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 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.
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