Second Quarter Results for 2020/21
LONDON, UK / ACCESSWIRE / January 14, 2021 / Orosur Mining Inc. ("Orosur" or "the Company") (TSX:OMI)(AIM:OMI), a South American-focused gold developer and explorer, is pleased to announce the results for the second quarter ended November 30, 2020 ("Q2 21" or the "Quarter"). All dollar figures are stated in US$ unless otherwise noted. The unaudited condensed interim financial statements of the Company for the quarter ended November 30, 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. 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/6271L_1-2021-1-13.pdf
Highlights of the Second Quarter Results for 2020/21
- 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.
- On September 30, 2020, Newmont Corporation, entered into a Joint Venture with Agnico Eagle ("Agnico") whereby it was agreed that the two companies 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. Orosur's Anzá Project is subject to the Exploration Agreement with Newmont Colombia. Newmont Colombia then became the Joint Venture vehicle between Newmont and Agnico and its name was changed to Minera Monte Águila SAS ("Monte Águila").
- Orosur's position with respect to the Anzá project, and all terms and conditions of the Exploration Agreement remain unchanged. Monte Águila assumes all rights and obligations with respect to the Anzá Project that were previously held by Newmont Colombia, with Orosur's wholly owned subsidiary Minera Anzá remaining operator of the Anzá Project and conducting exploration work on behalf of Monte Águila, until such time as Monte Águila assumes operatorship at its discretion.
- Initial funding of approximately $650k was received by Minera Anzá on October 2, 2020 from Agnico to restart the exploration program. And a further $1,130k was received subsequent to the period end on December 11, 2020. This funding is to be directed solely to fund exploration on the Anzá Project for the 12 month period starting September 7, 2020 and are the first two tranches of the required $4 million 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 months period ended September 6, 2020. The payment in lieu, which amounted to $582k was received on November 5, 2020.
- Upon receipt of exploration funds, Minera Anzá began the process of re-establishing its field camp at the Anzá project in readiness for commencement of field operations. In addition, a process of recruitment was commenced to hire the required technical and logistics staff.
- Drilling operations commenced on the November 15, 2020, at the Anzá project, but no assay results were returned during the quarter.
- In Uruguay, the Company has focused its activities on the implementation of the Creditors Agreement, which was approved by the Court in September 2019, and the sale of the assets of its Uruguayan subsidiary Loryser.
- Loryser is continuing with the reclamation of the tailings dam which is progressing well.
- Good progress is also being made on the sale of Loryser's other assets including plant and equipment. The proceeds from these sales will be used to pay liabilities in Uruguay in connection with the aforementioned Creditors Agreement.
Financial and Corporate
- On November 30, 2020, the Company had a cash balance of $1.5 million (May 31, 2020 - $0.8 million). As at January 12, 2021 the cash balance was $7.6 million, subsequent to the private placement and options exercised set out below.
- On October 30, 2020, 2,876,670 options were exercised by a number of employees and former employees.
- Subsequent to the period end, on December 7, 2020, the Company completed a private placement financing consisting of the sale of 23,529,412 units (the "Units") at 17 pence per Unit for aggregate gross proceeds of £4 million ($5,372,000). Each Unit consisted of one (1) common share in the capital stock of the Company ("Common Share") and one-half (1/2) of one Common Share purchase warrant (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire an additional Common Share at a price of 25.5 pence for a period of 12 months from the date of issuance.
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
[email protected] 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.
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SOURCE: Orosur Mining Inc