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Orosur Mining Inc - First Quarter 2021 Results

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 30th 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.

 

 

 

For further information, please contact:

 

Orosur Mining Inc

Louis Castro, Chairman,

Brad George, CEO

[email protected]

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

[email protected]              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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