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Orosur Mining Inc Announces Results for First Quarter Ended August 31, 2022

Orosur Mining Inc

Orosur Mining Inc. Results for First Quarter ended August 31, 2022

LONDON, UK / ACCESSWIRE / October 31, 2022 / Orosur Mining Inc. ("Orosur" or "the Company") (TSXV:OMI)(AIM:OMI) announces its unaudited results for the quarter ended August 31, 2022. All dollar figures are stated in US$ unless otherwise noted. The unaudited condensed financial statements of the Company for the quarter ended August 31, 2022 and the related management's discussion and analysis ("MD&A") 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/5732E_1-2022-10-30.pdf

A link to the PDF version of the MD&A is available here:

http://www.rns-pdf.londonstockexchange.com/rns/5732E_2-2022-10-30.pdf

Highlights

Colombia

· On June 27, 2022, assay results from five additional holes in APTA were announced. Reasonable grades of gold were intercepted in two of the holes and the other holes showed lower levels of gold but high-grade copper and zinc evident at depth. As planned, drilling focus was then shifted to Pepas and Pupino.

· On September 6, 2022, subsequent to the quarter end, the Company announced assay results from the Pepas prospect to the north of Anza, including assay results from PEP001 which returned a substantial, high-grade intersection of 150.9m @ 3.00g/t Au (from surface). Also announced on that day, was that Monte Aguila had informed the Company that it had met its expenditure of US$4m for the year.

· On September 9, 2022, the Company that announced that its JV partner, Monte Águila, provided the Company with a Phase 1 Earn-In Notice, having completed all of the Phase 1 obligations, including investing US$10 million in the Anza Project. The Company and Monte Aguila will begin the process of forming a new mining company ("Mining Company") that will hold title to the Anza Project's concessions and applications. The Company was also notified by Monte Aguila that in accordance with the Exploration Agreement, it will enter Phase 2 following negotiation and execution of a joint venture agreement to govern the operations of the Mining Company. Once the Mining Company is formed, which is expected to take several months, Orour will initially have 49% ownership and Monte Aguila, 51% ownership in the Mining Company, which will be managed by Monte Aguila.

· On October 21,2022, the Company announced assay results from four additional diamond drill holes at Pepas and Pupino. Both the Pepas and Pupino prospects are located in the northern region of the Anzá Prospect, roughly 12km and 8km respectively north northeast from the central APTA prospect that had seen most drilling at Anzá up until early 2022. At PEPAS, holes PEP005 and PEP007 were drilled from the same pad as PEP001 but in different directions. Both holes returned substantial gold intersections, with the best at PEP007 being 80.55m @ 3.05g/t Au from surface (including 41.75m @ 5.24g/t). Two additional holes are currently underway from new pads in an attempt to better define the geometry of the mineralised body at Pepas.

Argentina

· On June 28, 2022, the Company announced further positive results from the in-fill program, confirming previous work and results. High levels of gold soil anomalies, over 1 km, including 150 ppb, plus pathfinder elements over a wider area are suggestive of a major epithermal system. This work has defined a high priority target to be followed up in the coming two months.

Uruguay

· 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 which is nearing completion.

· During the course of the year, Loryser agreed and paid for the settlements with all of its former employees, with the proceeds received from the sale of certain of its assets.

· 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, 2022, the Company had a cash balance of US$ 3,634k (May 31, 2022: US$ 4,221k). As at the date of this announcement the Company had a cash balance of US$ 3,033k.

Outlook and Strategy

During the period, the Company continued its focus on developing the potential at Anza in Colombia as well as progressing its Ariquemes tin project in Brazil, and its El Pantano gold/silver project in Argentina. The combination of the three projects have transformed the Company into a well-balanced minerals exploration company.

The Company will continue to build its project portfolio with other high-quality assets, whilst concluding the orderly closure of its historical operations in Uruguay.

Consolidated Statements of Financial Position (Expressed in thousands of United States dollars)

As at

As at


August 31,

2022

May 31,

2022

ASSETS



Current assets

Cash and cash equivalents

$ 3,634

$ 4,221

Restricted cash

203

353

Accounts receivable and other assets

154

186

Assets held for sale in Uruguay

1,089

1,160

Total current assets

5,080

5,920

Non-current assets

Property, plant and equipment

100

113

Exploration and evaluation assets Colombia

4,985

5,441

Total assets

$ 10,165

$ 11,474

LIABILITIES AND (DEFICIT)



Current liabilities

Accounts payable and accrued liabilities

$ 312

$ 389

Liabilities of Chile discontinued operation

2,075

2,058

Warrant liability

92

168

Liabilities held for sale in Uruguay

12,823

13,134

Total current liabilities

15,302

15,749

Deficit

Share capital

69,339

69,333

Contributed surplus

10,540

10,540

Currency translation reserve

(2,630)

(2,125)

Deficit

(82,386)

(82,029)

Total deficit

(5,137)

(4,275)

Total liabilities and deficit

$ 10,165

$ 11,474



Consolidated Statements of Loss and Comprehensive Loss (Expressed in thousands of United States dollars)

Three Months

Ended

Three Months

Ended


August 31,

2022

August 31,

2021

Operating expenses

Corporate and administrative expenses

$ (407)

$ (320)

Exploration expenses

(62)

-

Share-based compensation

-

(168)

Other income

6

1

Net finance cost

(2)

(1)

Gain on fair value of warrants

76

372

Foreign exchange (loss) gain net

(39)

(69)

Net (loss) for the year for continued operations

$ (428)

$ (185)

Other comprehensive (loss) income:

Cumulative translation adjustment

$ (505)

$ (201)

Total comprehensive (loss) for the year from continued operations

(933)

(386)

Income (loss) from discontinued operations

71

(1,538)

Total comprehensive (loss) for the year

(862)

(1,924)

Basic and diluted net (loss) per share for continued operations

$ (0.00)

$ (0.00)

Basic and diluted net income (loss) per share for discontinued operations

$ 0.00

$ (0.01)

Weighted average number of common shares

outstanding

188,520

188,420



Consolidated Statements of Cash Flows (Expressed in thousands of United States dollars)

Three Months

Ended

Three Months

Ended


August 31,

2022

August 31,

2021





Operating activities



Net loss for the year for continued and discontinued operations

$ (357)

$ (1,723)

Adjustments for:



Share-based payments

-

168

Fair value of warrants

(76)

(372)

Gain on sale of property, plant and equipment

(4)

(111)

Foreign exchange and other

(266)

(133)

Changes in non-cash working capital items:



Accounts receivable and other assets

(9)

(53)

Inventories

17

350

Accounts payable and accrued liabilities

(81)

640

Net cash used in operating activities

(776)

(1,234)

Investing activities



Increase (decrease) in the restricted cash

150

(719)

Proceeds received for sale of property, plant and equipment

4

111

Proceeds received from exploration and option agreement

37

782

Exploration and evaluation expenditures

(61)

(910)

Net cash provided by investing activities

130

(736)

Financing activities



Proceeds from the sale of treasury shares

-

719

Net cash provided by financing activities

-

719

Net Change in cash and cash equivalents

(646)

(1,251)

Net change in cash classified within assets held for sale

59

558)

Cash and cash equivalents, beginning of year

4,221

6,958

Cash and cash equivalents, end of year

$ 3,634

$ 6,958

Operating activities



- continued operations

(713)

(565)

- discontinued operations

(63)

(669)

Investing activities



- continued operations

126

(847)

- discontinued operations

4

111

Financing activities


- continued operations

-

719

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service ('RIS'), this inside information is now considered to be in the public domain.

For further information, please contact:

Orosur Mining Inc

Louis Castro, Executive Chairman,
Brad George, CEO
info@orosur.ca
Tel: +1 (778) 373-0100

SP Angel Corporate Finance LLP - Nomad & 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

Tim Thompson
Mark Edwards
Fergus Mellon
orosur@flagstaffcomms.com
Tel: +44 (0)207 129 1474

About Orosur Mining Inc.

Orosur Mining Inc. (TSXV: OMI; AIM: OMI) is a minerals explorer and developer focused on identifying and advancing projects in South America. The Company currently operates in Colombia, Brazil and Argentina and has discontinued operations in 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 Minera Monte Águila of those plans, Minera 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 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 Company's MD&A for the year ended May 31, 2022. 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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

SOURCE: Orosur Mining Inc



View source version on accesswire.com:
https://www.accesswire.com/723017/Orosur-Mining-Inc-Announces-Results-for-First-Quarter-Ended-August-31-2022