Results for First Quarter ended August 31, 2024
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London, October 30th, 2024. Orosur Mining Inc. ("Orosur" or "the Company") (TSX-V: OMI) (AIM: OMI) the minerals developer and explorer with operations in Colombia, Argentina and Nigeria, announces its unaudited results for the quarter ended August 31, 2024. All dollar figures are stated in US$ unless otherwise noted. The unaudited condensed interim financial statements of the Company for the quarter ended August 31, 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: http://www.rns-pdf.londonstockexchange.com/rns/1125K_2-2024-10-29.pdf
A link to the PDF version of the MD&A is available here: http://www.rns-pdf.londonstockexchange.com/rns/1125K_1-2024-10-29.pdf
HIGHLIGHTS
Operational and financial highlights for the three months ended August 31, 2024 are set out below:
Operational
- In Colombia, the Company continued its negotiations with Agnico and Newmont for the acquisition of MMA to regain 100% ownership of the Anza gold project, whilst continuing with some low-level sampling and community work.
- Post the quarter end, on September 10, 2024, the Company entered into a sale and purchase agreement ("SPA") to acquire MMA, thereby reassuming 100% of the Company's flagship Anza Gold Project in Colombia. Under the SPA, Orosur's wholly owned Canadian subsidiary, Waymar Resources Ltd., will purchase all of the issued shares of MMA from wholly owned subsidiaries of Newmont and Agnico resulting in Orosur regaining 100% ownership of the Anza Project (the "Acquisition"). No cash is payable up front, with all consideration deferred and wholly contingent upon commercial production from the Anza Project. The agreed consideration payable to Newmont and Agnico consists of a net smelter royalty of an aggregate amount of 1.5% on all future mineral production, plus a further royalty of an aggregate amount of US$75 per ounce of gold or gold equivalent ounce for the first 200,000 gold equivalent ounces of mineral production. Completion of the Acquisition has been approved by the TSXV and Completion is now subject only to customary closing conditions.
- 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 is expected to take several months and it is thus anticipated the Company will have drilling permits later in the 2024 calendar year.
- In Nigeria, where the project returned good early results, the Company is proceeding at a slower pace whilst lithium prices start 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 paying agent.
Financial
- The condensed unaudited 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 discontinued operations. This accounting treatment has been applied to the activities in Uruguay and Chile.
- Post the quarter end, on September 30, 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 ("Placing Shares") at a price of 2.78 pence per Placing Share, together with a grant of one unlisted 2 year warrant to purchase one additional common share exercisable at US$0.0494 (approximately 3.697pence) for every two Placing Shares subscribed for. As part of their fee, 3,003,597 unlisted 5 year warrants were granted to the Company's broker on the transaction, exercisable at US$0.03715 (approximately 2.78 pence) for every share subscribed for.
- On August 31, 2024, the Company had a cash balance of US$710,000 (May 31, 2024: US$1,328.000). As at the date of this announcement, the Company has a cash balance of US$1,150,000.
Condensed Interim Consolidated Statements of Financial Position
(Expressed in thousands of United States dollars)
Unaudited
| As at August 31, 2024 $ | As at May 31, 2024 $ | |
|---|---|---|
| ASSETS | ||
| Current assets | ||
| Cash | 710 | 1,328 |
| Restricted cash | 12 | 12 |
| Accounts receivable and other assets | 290 | 279 |
| Assets held for sale in Uruguay | 210 | 226 |
| Total current assets | 1,222 | 1,845 |
| Non-current assets | ||
| Property, plant and equipment | 188 | 202 |
| Exploration and evaluation assets | 3,111 | 3,343 |
| Total assets | 4,521 | 5,390 |
| LIABILITIES AND EQUITY | ||
| Current liabilities | ||
| Accounts payable and accrued liabilities | 428 | 445 |
| Liability of Chile discontinued operation | 2,417 | 2,376 |
| Liabilities held for sale in Uruguay | 10,982 | 11,208 |
| Total current liabilities | 13,827 | 14,029 |
| Equity | ||
| Share capital | 69,529 | 69,529 |
| Share-based payments reserve | 10,538 | 10,538 |
| Warrants | 302 | 302 |
| Currency translation reserve | (2,196) | (1,808) |
| Accumulated deficit | (87,473) | (87,194) |
| Total equity attributable to owners of the parent | (9,300) | (8,633) |
| Non-controlling interest | (6) | (6) |
| Total equity | (9,306) | (8,639) |
| Total liabilities and equity | 4,521 | 5,390 |
Condensed Interim Consolidated Statements of Loss and Comprehensive Loss
(Expressed in thousands of United States dollars)
(Except common shares and per share amounts)
Unaudited
| Three Months Ended August 31, 2024 $ | Three Months Ended August 31, 2023 $ | |
|---|---|---|
| Corporate and administrative expenses | (435) | (398) |
| Exploration expenses | (76) | (27) |
| Other income | 38 | 6 |
| Net finance cost | (3) | (4) |
| Foreign exchange gain net | 28 | 59 |
| Net loss for the period for continuing operations | (448) | (364) |
| Income (loss) from discontinued operations | 169 | (250) |
| Net loss for the period | (279) | (614) |
Item which may be subsequently reclassified to profit or loss:
| Three Months Ended August 31, 2024 $ | Three Months Ended August 31, 2023 $ | |
|---|---|---|
| Cumulative translation adjustment | (388) | 327 |
| Total comprehensive loss for the period | (667) | (287) |
| Basic and diluted net income (loss) per share for | ||
| - continuing operations | (0.00) | (0.00) |
| - discontinued operations | 0.00 | 0.00 |
| Weighted average number of common shares outstanding | 193,212 | 188,560 |
| Condensed Interim Consolidated Statements of Cash Flows | ||
| (Expressed in thousands of United States dollars) | ||
| Unaudited | Three Months Ended August 31, 2024 $ | Three Months Ended August 31, 2023 $ |
| Operating activities | ||
| Net loss for the period for continued and discontinued operations | (279) | (614) |
| Adjustments for | ||
| Depreciation / Write downs | 5 | 2 |
| Foreign exchange and other | (47) | 109 |
| Changes in non-cash working capital items: | ||
| Accounts receivable and other assets | (10) | 14 |
| Accounts payable and accrued liabilities | (215) | 70 |
| Net cash used in operating activities | (546) | (419) |
| Investing activities | ||
| Purchase of property, plant and equipment | - | (9) |
| Exploration and evaluation expenditures | (85) | (171) |
| Net cash used in provided by investing activities | (85) | (180) |
| Net change in cash | (631) | (599) |
| Net change in cash classified within assets held for sale | 13 | 37 |
| Cash, beginning of period | 1,328 | 3,748 |
| Cash end of period | 710 | 3,186 |
| Operating activities | ||
| - continuing operations | (533) | (382) |
| - discontinued operations | (13) | (37) |
| Investing activities | ||
| - continuing operations | (85) | (180) |
| - discontinued operations | - | - |
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