London, October 15, 2021 . Orosur Mining Inc. (“Orosur” or “the Company”) (TSX: OMI) (AIM: OMI) announces its unaudited results for the quarter ended August 31, 2021.
All dollar figures are stated in US$ unless otherwise noted. The unaudited condensed financial statements of the Company for the quarter ended August 31, 2021 and the related management’s discussion and analysis (“MDA”) have been filed and are available for review on the SEDAR website at www.sedar.com and on the Company’s website at www.orosur.ca.
A link to the PDF version of the financial statements is available here: http://www.rns-pdf.londonstockexchange.com/rns/2366P_1-2021-10-15.pdf
A link to the PDF version of the MDA is available here: http://www.rns-pdf.londonstockexchange.com/rns/2366P_2-2021-10-15.pdf
· On July 6, 2021, the Company announced the assay results from nine additional diamond drillholes including multiple high-grade gold intersections with associated silver and zinc – including 59.55m @9.16g/t Au and 61.75m @2.05g/t Au. For more detail, please see the Company’s news release dated July 6, 2021.
· Also as set out in the above news release, work commenced on regional mapping and sampling across the wider lease holding in Colombia. A large program of BLEG sampling was commenced, which should provide vectors to more targeted programs in following quarters. Initial results have been promising, with two new prospect areas identified and named for future reference, Pupino and Pepas.
· The Company commenced work on converting the last of its secure license applications to granted status so that they can be accessed for exploration work later in the year.
· Post period end, as announced on September 7, 2021, the Company was informed by its Colombian Joint Venture (“JV”) partner, Minera Monte Águila SAS (“Monte Águila”) that it had elected to exercise its right to assume operatorship of the Anzá Project in Colombia. Monte Águila is a 50/50 JV between Newmont Corporation (“Newmont”) (NYSE:NEM, TSX:NEM) and Agnico Eagle Mines Limited (“Agnico”) (TSX:AEM), and is the vehicle by which these two companies jointly exercise their rights and obligations with respect to the Exploration Agreement with Venture Option (“Exploration Agreement”) over the Anzá Project.
· The Anzá Project has now moved into its fourth year of Phase 1 during which time a further US$4.0 million is required to be spent pursuant to the Exploration Agreement.
· While Monte Águila manages the Anzá Project, Minera Anzá will continue to be the 100% owner of the licences, until such time as Monte Águila has met its financial obligations with respect to the Exploration Agreement and elected to move to Phase 2 by September 2022.
· In Uruguay, the Company’s wholly owned subsidiary, Loryser, continues to focus 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.
· As part of the Creditors Agreement, Orosur issued 10,000,000 Orosur common shares, in December 2019, to a trust for the benefit of Loryser’s creditors. On September 10, 2021 the Company announced that it had been informed by the San Gregorio Trust that it had successfully sold its entire shareholding of 10 million common shares in the Company, which amount will be applied to meet Loryser’s obligations under the Creditors Agreement.
· Good progress is being made on the sale of Loryser’s other assets including plant and equipment. The proceeds from all of these sales will be used to pay liabilities in Uruguay in connection with the aforementioned Creditors Agreement.
On August 31, 2021, the Company had a cash balance of US$6,265k (May 31, 2021US$6,958k). As at the date of this announcement the Company had a cash balance of US$5,685k.
Strategy and outlook
During the period, the Company continued its focus on developing the potential at Anza and continuing the orderly closure of its historical operations in Uruguay in accordance with the Court approved Creditors Agreement.
The Company has also been examining new business opportunities in South America, and on July 7th, 2021, it announced that it had entered into a non-binding Letter of Intent in order to establish a joint venture on a tin project in Rhondonia state in Brazil. The parties are progressing matters.
The Company intends to continue building its project portfolio with other high-quality assets, subject to current travel restrictions caused by Covid-19.
Transfer from the TSX to the TSX Venture Exchange
The Company has received approval to transfer its listing from the TSX to the TSX Venture Exchange. The Company believes that the transfer will provide it with operational efficiencies, with lower costs and with a reporting regime which is closer to that of the AIM market, whilst allowing shareholders to have continued trading liquidity in Canada.
The Company’s existing listing on AIM, where approximately 90% of the Company’s liquidity resides, will continue without interruption as normal during the transition and beyond.
The Company expects a seamless transition, delisting from TSX at market close on Friday 29th October 2021 to listing on the TSX Venture Exchange at market opening on Monday 1st November 2021. The Company’s Common Shares will continue to trade under the symbol “OMI”. Shareholder approval for the delisting from the TSX is not required since the Company will have its Common Shares listed on the TSXV.
For further information, please contact:
Orosur Mining Inc
Louis Castro, Chairman
Brad George, CEO
Tel: +1 (778) 373-0100
If anyone reads this article found it useful, helpful? Then please subscribe www.share-talk.com or follow SHARE TALK on our Twitter page for future updates.
Terms of Website Use
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned