Orosur Mining Inc Results for First Quarter ended August 31, 2023 (6121R)

TIDMOMI

RNS Number : 6121R

Orosur Mining Inc

30 October 2023

Orosur Mining Inc.

Results for First Quarter ended August 31, 2023

London, October 30th, 2023 . Orosur Mining Inc. ("Orosur" or "the Company") (TSX-V: OMI) (AIM: OMI) the minerals developer and explorer with operations in Colombia, Argentina, Nigeria and Brazil announces its unaudited results for the quarter ended August 31, 2023. 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, 2023 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/6121R_2-2023-10-27.pdf

A link to the PDF version of the MD&A is available here : http://www.rns-pdf.londonstockexchange.com/rns/6121R_1-2023-10-27.pdf

HIGHLIGHTS

-- In Colombia, negotiations continued with Monte Aguila on the shareholders agreement which will govern the new mining company to be owned 51% by Monte Agulia and 49% by Orosur. These discussions have continued post the period end. Whilst exploration activities have been wound back, some mapping and surface sampling has been carried out; a variety of licence processes, such as the integration of smaller licences have been advanced; and Monte Aguila has continued to fund the promotion of relationships with local community groups to strengthen the social licence to operate the Project.

-- In Brazil, on July 5, 2023, the Company announced that given the success of the regional stream sediment program performed across the Company's Ariquemes district, it had decided to move to the next phase which has targeted two prospects at Oriente Novo (in the east of the Company's tenements) and at Paraiso in the west and to the north of the Bom Futuro tin mine. Sampling was performed during July and August and assays are expected imminently.

-- In Argentina, on May 4, 2023 the Company announced that mapping and ground magnetic surveys at El Pantano had identified a major NW-SE structural corridor over 20km long and 5km wide, with large areas of silicification, alteration and geochemical anomalism over extensive areas. Mapping to the north of the main structure has so far identified over 70 quartz veins over an area in excess of 20km(2) , with textures indicative of cooler temperatures, fully consistent with the model of a very large low-sulphidation epithermal system. Mapping of this vein field continued until the commencement of the winter recess in early June. Soil sampling assay results were received and continued to add weight to the geological model with extended anomalism in gold and key pathfinder elements. Sampling and ground magnetic surveys recommenced after the winter recess in September with the plan of completing coverage of the highest priority parts of the project before the end of the year.

-- In Uruguay the Company's wholly owned subsidiary, Loryser, continued 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.

-- Post the period end, on October 16,2023, the Company announced that it had signed a joint venture agreement over four licences in the Nigerian lithium belt. The Company, via a new 100% owned UK subsidiary, Lithium West Limited ("Lithium West"), may earn up to 70% equity in the project in two phases: Phase 1 - Lithium West can earn 51% equity in the project by spending a total of US$3m over a maximum of three years. Phase 2 - Lithium West can earn an additional 19% equity in the project, up to a total of 70%, by spending an additional US$2m over a maximum of two years. Other prospective areas are currently being examined and it is possible that additional licences may be added to the project in the near term.

Financial and Corporate

-- 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 discontinued operations. This accounting treatment has been applied to the activities in Uruguay and Chile.

-- On August 31, 2023, the Company had a cash balance of $3,186,000 (May 31, 2023: $3,748,000). As at the date of this announcement the Company had a cash balance of $2,350,000.

Louis Castro, Executive Chairman of Orosur said:

"This has been a very busy progressive first quarter for the Company, with positive advances across all our portfolio. We are particularly delighted, post period, to add a high quality Lithium asset in Nigeria with an in situ team, which will allow us to focus on both our South American activities and on our new asset. "

 
 Condensed Interim Consolidated Statements of Financial Position 
 (Expressed in thousands of United States 
  dollars) 
 Unaudited 
                                                   As at        As at 
                                                 August 31,     May 31, 
                                                    2023 
                                                     $           2023 
                                                                   $ 
--------------------------------------------  -------------  ---------- 
 ASSETS 
 
 Current assets 
  Cash                                                3,186       3,748 
  Restricted cash                                        12          12 
  Accounts receivable and other assets                  208         219 
  Assets held for sale in Uruguay                       958         898 
--------------------------------------------  -------------  ---------- 
 Total current assets                                 4,364       4,968 
 
 Non-current assets 
  Property, plant and equipment                         137         123 
  Exploration and evaluation assets                   3,787       3,334 
--------------------------------------------  -------------  ---------- 
 Total assets                                         8,288       8,425 
--------------------------------------------  -------------  ---------- 
 
 LIABILITIES AND DEFICIT 
 
 Current liabilities 
  Accounts payable and accrued liabilities              269         336 
  Liability of Chile discontinued operation           2,248       2,204 
  Liabilities held for sale in Uruguay               12,719      12,546 
--------------------------------------------  -------------  ---------- 
 Total current liabilities                           15,236      15,086 
--------------------------------------------  -------------  ---------- 
 
 Deficit 
  Share capital                                      69,341      69,341 
  Share-based payments reserve                       10,539      10,539 
  Currency translation reserve                      (2,398)     (2,725) 
  Deficit                                          (84,430)    (83,816) 
--------------------------------------------  -------------  ---------- 
 Total deficit                                      (6,948)     (6,661) 
--------------------------------------------  -------------  ---------- 
 Total liabilities and deficit                        8,288       8,425 
--------------------------------------------  -------------  ---------- 
 
 
 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        Three Months 
                                                    Ended               Ended 
                                                  August 31,          August 31, 
                                                     2023                2022 
                                                       $                   $ 
---------------------------------------------  --------------  ---------------------- 
 
 
  Corporate and administrative expenses                 (398)                   (407) 
  Exploration expenses                                   (27)                    (62) 
  Other income                                              6                       6 
  Net finance cost                                        (4)                     (2) 
  Gain on fair value of warrants                            -                      76 
  Foreign exchange (loss) gain net                         59                    (39) 
---------------------------------------------  --------------  ---------------------- 
 Net (loss) for the period for continuing 
  operations                                            (364)                   (428) 
 (Loss) income from discontinued operations             (250)                      71 
---------------------------------------------  --------------  ---------------------- 
 Net (loss) for the period                              (614)                   (357) 
 Item which may be subsequently reclassified 
  to profit or loss: 
  Cumulative translation adjustment                       327                   (505) 
---------------------------------------------  --------------  ---------------------- 
 Total comprehensive (loss) for the period              (287)                   (862) 

---------------------------------------------  --------------  ---------------------- 
 
 Basic and diluted net (loss) income 
  per share for 
  - continuing operations                              (0.00)                  (0.00) 
  - discontinued operations                            (0.00)                    0.00 
 Weighted average number of common shares 
  outstanding                                         188,560                 188,432 
---------------------------------------------  --------------  ---------------------- 
 
 
 Condensed Interim Consolidated Statements of Cash Flows 
 (Expressed in thousands of United States 
  dollars) 
  Unaudited                                         Three Months    Three Months 
                                                       Ended           Ended 
                                                     August 31,      August 31, 
                                                        2023            2022 
                                                          $               $ 
------------------------------------------------  --------------  -------------- 
 
 Operating activities 
 Net loss for the period for continued 
  and discontinued operations                              (614)           (357) 
 Adjustments for 
  Depreciation / Write downs                                   2               - 
  Gain on fair value of warrants                               -            (76) 
  Gain on sale of property, plant and equipment                -             (4) 
  Foreign exchange and other                                 109           (266) 
 Changes in non-cash working capital items: 
  Accounts receivable and other assets                        14             (9) 
  Inventories                                                  -              17 
  Accounts payable and accrued liabilities                    70            (81) 
------------------------------------------------  --------------  -------------- 
 Net cash used in operating activities                     (419)           (776) 
 
 Investing activities 
 Decrease in restricted cash                                   -             150 
 Proceeds received for sale of property, 
  plant and equipment                                          -               4 
 Purchase of property, plant and equipment                   (9)               - 
 Proceeds received from exploration and 
  option agreement                                             -              37 
 Exploration and evaluation expenditures                   (171)            (61) 
------------------------------------------------  --------------  -------------- 
 Net cash (used in) provided by investing 
  activities                                               (180)             130 
 Net change in cash                                        (599)           (646) 
 Net change in cash classified within 
  assets held for sale                                        37              59 
 Cash, beginning of period                                 3,748           4,221 
------------------------------------------------  --------------  -------------- 
 Cash end of period                                        3,186           3,634 
------------------------------------------------  --------------  -------------- 
 
 Operating activities 
 - continuing operations                                   (382)           (713) 
 - discontinued operations                                  (37)            (63) 
 Investing activities 
 - continuing operations                                   (180)             126 
 - discontinued operations                                     -               4 
------------------------------------------------  --------------  -------------- 
 

F or further information, visit www.orosur.ca , follow on twitter @orosurm or please contact:

Orosur Mining Inc

Louis Castro, Chairman,

Brad George, CEO

[e-mail]

Tel: [phone]

SP Angel Corporate Finance LLP - Nomad & Broker

Jeff Keating / Kasia Brzozowska

Tel: [phone]

Turner Pope Investments (TPI) Ltd - Joint Broker

Andy Thacker/James Pope

Tel: [phone]

Flagstaff Communications

Tim Thompson

Mark Edwards

Fergus Mellon

   [e-mail]               Tel: [phone] 

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, Nigeria and Brazil,

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, Argentina, Nigeria and Brazil and the funding in Colombia 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 MD&A and the Annual Information Form. 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.

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October 30, 2023 03:00 ET (07:00 GMT)