Orosur Mining Inc. – Termination of Anillo Option Agreement
May 25 2018 - 2:00AM
Business Wire
Orosur Mining Inc. (“Orosur” or “the Company”) (TSX/AIM: OMI), a
South American-focused gold producer, developer and explorer
announces its decision to terminate the option agreement on its
Anillo gold exploration project with Nacional del Cobre de Chile
(“Codelco”), Chile’s national mining company, located close to
Antofagasta, in Region II, Chile and focus its resources on its
core properties in Colombia and Uruguay.
The Anillo project was originally optioned from Codelco in 2010,
giving Orosur the right to acquire a 65% interest in the project by
spending US$4,000,000 over 4 years and completing a bankable
feasibility study.
On June 6, 2015, the Company closed a further option agreement
with Asset Chile Exploración Minera Fondo de Inversión Privado
(“AC”), whereby AC subscribed for an initial amount of Anillo SPA
common shares equal to 16% of the capital of Anillo SPA for gross
proceeds of US$850,000. AC had a further option to elect to earn up
to 32.5% and up to 40%, by funding an additional US$1,250,000 and
an additional US$1,375,000 respectively, which did not
materialise.
Rather, following completion of the first phase of capital,
Orosur and AC agreed to extend AC’s timing to enter into phase 2
until December 2017 in exchange for AC paying care and maintenance
costs of Anillo as well as the Chilean office costs and also
allowing Orosur to enter into discussions with other parties to
potentially fund the project.
In view of the lack of positive exploration results during phase
1, AC gave notice of their intention not to enter into phase 2,
following which and given the lack of alternative partners and the
early stage and high-risk nature of this project, the Company has
decided not to proceed with the option agreement. The termination
of the option agreement is concluded by notifying Codelco and the
notice was given to Codelco on May 24, 2018. There are no penalties
involved with the termination of the Anillo option agreement.
Orosur has an asset value of approximately US$5.5 million
recognized in its statements for the Anillo project which will be
written down in the next financial results.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a fully integrated
gold producer, developer and explorer focused on identifying and
advancing gold projects in South America. The Company operates the
only producing gold mine in Uruguay (San Gregorio) and has
assembled an exploration portfolio of high quality assets in
Uruguay, Chile and Colombia.
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.
Forward Looking Statements
All statements, other than statements of historical fact,
contained or incorporated by reference in this news release,
including any information as to the future financial or operating
performance of the Company, constitute "forward-looking statements"
within the meaning of certain securities laws, including the "safe
harbour" provisions of the Securities Act (Ontario) and 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. There can be no assurance that such statements
will prove to be accurate. Such statements are subject to
significant risks and uncertainties, and actual results and future
events could differ materially from those anticipated in such
statements. Forward-looking statements include, without limitation
success of exploration activities; permitting time lines; the
failure of plant; equipment or processes to operate as anticipated;
accidents; labour disputes; requirements for additional capital
title disputes or claims and limitations on insurance coverage. 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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version on businesswire.com: https://www.businesswire.com/news/home/20180524006313/en/
For further information, please contact:Orosur Mining
IncIgnacio Salazar, Chief Executive OfficerRyan Cohen, VP
Corporate Development+1-778-373-0100info@orosur.caorCantor
Fitzgerald Europe – Nomad & Joint BrokerDavid Porter /
Keith Dowsing, +44 (0) 20 7894 7000orNumis Securities Limited –
Joint BrokerJohn Prior / James Black / Paul Gillam, +44 (0) 20
7260 1000