LONDON, UK / ACCESS Newswire / January 30, 2025 / Orosur Mining Inc. ("Orosur" or "the Company") (TSXV:OMI)(AIM:OMI) the minerals developer and explorer with operations in Colombia, Argentina and Nigeria, announces its unaudited results for the quarter ended November 30, 2024. 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, 2024 and the related management's discussion and analysis ("MD&A") have been filed and are available for review on the SEDAR+ website at www.sedarplus.ca. The financial statements and the MD&A are also available on the Company's website at www.orosur.ca.
A link to the PDF version of the financial statements is available here:
HIGHLIGHTS Operational and financial highlights for the six months ended November 30, 2024 are set out below:
Operational
In Colombia, on November 27, 2024, the Company completed the acquisition of Minera Monte Aguila S.A.S. ("Monte Aguila") as a result of which the Company now has 100% ownership of the Company's flagship Anzá Gold Project. Under the terms of the acquisition, Orosur's wholly owned Canadian subsidiary, Waymar Resources Ltd., purchased all of the issued shares of Monte Aguila from wholly owned subsidiaries of Newmont and Agnico resulting in Orosur regaining 100% ownership of the Project. No cash is payable up front, with all consideration deferred and wholly contingent upon commercial production from the Anza Project. The agreed consideration is a net smelter royalty of 1.5% on all future mineral production, plus a capped fixed royalty of an aggregate amount of US$75 per ounce of gold or gold equivalent ounce on the first 200,000 gold equivalent ounces of mineral production. Completion of the acquisition was subject to customary conditions including the approval of the TSXV, which conditions have all been met. The Company also re-took operatorship of the Anza Gold Project, commencing a drilling program at the Pepas prospect in late November 2024 which has extended post quarter end with very good results.
In Argentina, the Company has completed and submitted all the necessary environmental studies that are required as part of the Santa Cruz Province drilling permit process. Consideration of these reports and drilling approval was expected to take several months. The Company has now received the approval necessary for drilling. A further geo-physical campaign is planned to refine targets after which the Company will consider drilling, likely to take place later in 2025 subject to funding.
In Nigeria, the Company will look to make some advances on its lithium project, but at a slower pace whilst lithium prices continue to recover.
In Uruguay, the Company's wholly owned subsidiary, Loryser, continues to focus its activities on the final stages of the Creditors Agreement. In line with the Creditors Agreement, Loryser has sold all of its assets. It has paid for the settlements with all of its former employees; it has finalised the reclamation and remediation works on the tailings dam and has successfully concluded a one-year post-closure control phase. Loryser is well advanced in distributing the proceeds to Loryser's trade creditors in accordance with the Creditors' Agreement, via a Court approved settlement agent.
Financial
The unaudited condensed interim consolidated financial statements have been prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are accounted for as Assets and Liabilities held for sale (at the lower of book value or fair value) and Profit and Loss from discontinuing operations. This accounting treatment has been applied to the activities in Uruguay and Chile.
On September 30 th , 2024, the Company announced that it had raised the sum of £835,000 (before expenses) through a placing of 30,035,971 new common shares of no par value at a price of 2.78 pence per Placing Share, together with a grant of one unlisted warrant to purchase one additional common share exercisable at US$0.0494 (approximately 3.697p) for every two Placing Shares subscribed for.
On November 30, 2024, the Company had a cash balance of $945,000 (May 31, 2024 $2,104,000). As at the date of this announcement the Company has a cash balance of $2,200,000.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
Unaudited
As at
November 30, 2024
$
As at
May 31,
2024
$
ASSETS
Current assets
Cash
945
1,328
Restricted cash
12
12
Accounts receivable and other assets
391
279
Assets held for sale in Uruguay
192
226
Total current assets
1,540
1,845
Non-current assets
Property and equipment
319
202
Exploration and evaluation assets
5,632
3,343
Right-of-use asset
131
-
Total assets
7,622
5,390
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities
667
445
Liability of Chile discontinued operation
-
2,376
Liabilities held for sale in Uruguay
10,618
11,208
Right-of use asset
27
-
Total current liabilities
11,312
14,029
Non-current liabilities
Contingency royalties
2,556
-
Right-of use asset
147
-
Total liabilities
14,015
14,029
Equity
Share capital
70,086
69,529
Share-based payments reserve
10,645
10,538
Warrants
697
302
Currency translation reserve
(2,488
)
(1,808
)
Accumulated deficit
(85,324
)
(87,194
)
Total equity attributable to owners of the parent
(6,384
)
(8,633
)
Non-controlling interest
(9
)
(6
)
Total equity
(6,393
)
(8,639
)
Total liabilities and equity
7,622
5,390
Condensed Interim Consolidated Statements of Income (Loss) and
Comprehensive Income (Loss)
(Expressed in thousands of United States dollars)
(Except common shares and per share amounts)
Unaudited
Three Months Ended November 30, 2024
$
Three Months Ended November 30, 2023
$
Six Months Ended November 30, 2024
$
Six Months Ended November 30, 2023
$
Corporate and administrative expenses
(478
)
(468
)
(913
)
(866
)
Exploration expenses
(33
)
(26
)
(109
)
(53
)
Share-based compensation
(107
)
-
(107
)
-
Other income
13
10
51
16
Net finance cost
(3
)
(5
)
(6
)
(9
)
Foreign exchange gain net
(10
)
97
18
156
Net (loss) for the period for continuing
operations
(618
)
(392
)
(1,066
)
(756
)
(Loss) income from discontinued operations
2,767
136
2,936
(114
)
Net income (loss) for the period
2,149
(256
)
1,870
(870
)
Item which may be subsequently reclassified to profit or loss:
Cumulative translation adjustment
(292
)
356
(680
)
683
Total comprehensive income (loss) for the
period
1,857
100
1,190
(187
)
Basic and diluted net income (loss per share for
- continuing operations
(0.00
)
(0.00
)
(0.00
)
(0.00
)
- discontinued operations
0.01
0.00
0.01
(0.00
)
Weighted average number of common
shares outstanding
225,718,428
188,560,300
215,596,429
188,560,300
(Expressed in thousands of United States dollars)
Unaudited
Six Months Ended
November 30, 2024
$
Six Months Ended
November, 2023
$
Operating activities
Net income (loss) for the period for continued and discontinued operations
1,870
(870
)
Adjustments for
Depreciation / Write downs
10
6
Share-based payments
107
-
Reversed liability and interest accrued
(2,376
)
-
Foreign exchange and other
(11
)
366
Changes in non-cash working capital items:
Accounts receivable and other assets
(69
)
(271
)
Accounts payable and accrued liabilities
(628
)
(138
)
Net cash used in operating activities
(1,097
)
(907
)
Investing activities
Purchase of property and equipment
-
(85
)
Exploration and evaluation expenditures
(268
)
(727
)
Net cash used in investing activities
(268
)
(808
)
Financing activities
Proceeds from issue of common shares, net of shares issuance cost
952
-
Net cash provided by financing activities
952
-
Net change in cash
(413
)
(1,715
)
Net change in cash classified within assets held for sale
30
71
Cash, beginning of period
1,328
3,748
Cash end of period
945
2,104
Operating activities
- continuing operations
1,309
)
(836
)
- discontinued operations
(2,406
)
(71
)
Investing activities
- continuing operations
(268
)
(808
)
- discontinued operations
-
-
Financing activities
- continuing operations
952
-
For further information, visit www.orosur.ca, follow on X @orosurm or please contact:
Orosur Mining Inc Louis Castro, Chairman, Brad George, CEO info@orosur.ca Tel: +1 (778) 373-0100
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
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.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
About Orosur Mining Inc. Orosur Mining Inc. (TSXV:OMI)(AIM:OMI) is a minerals explorer and developer currently operating in Colombia, Argentina and Nigeria.
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, completion of the Acquisition, Orosur becoming operator of the Anzá Project, the expected focus on the Pepas prospect, the exploration plans in Colombia and the funding of those plans, and other events or conditions that may occur in the future. 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 to, meeting the closing conditions of the Acquisition, timing of closing of the Acquisition and those as described in Section "Risks Factors" of the Company's MD&A for the year ended May 31, 2024. 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. The Company's continuance as a going concern is dependent upon its ability to obtain adequate financing, and to reach a satisfactory closure 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.
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