LONDON, UNITED KINGDOM / ACCESS Newswire / April 28, 2025 / 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 February 28th, 2025. All dollar figures are stated in US$ unless otherwise noted.
The unaudited condensed interim financial statements of the Company for the quarter ended February 28th, 2025 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.
Operational and financial highlights for the quarter ended February 28th, 2025 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. The Company also re-took operatorship of the Anza Gold Project, commencing a drilling program at the Pepas prospect in late November 2024 which is still continuing and has produced some exceptional results, the details of which can be found in the Company's news releases on its website at www.orosur.ca.
In addition, on February 4, 2025, the Company announced that, following some surface sampling to the area immediately north of Pepas ("Pepas North"), a number of areas of mineralised material have been identified, with one large area along a small walking track exposing saprolite and semi-fresh rock. Over 100m of mineralisation was identified at surface, with samples taken at 1m intervals over the entire length of the exposure. Assay results averaged 1.15g/t Au over 105m, with individual samples at times exceeding 5g/t Au. This channel sample is at the southern extreme of the new Pepas North anomalous area, but over 200m north of the limit of current drilling. The Company is expected to commence drilling Pepas North during Q4 2025.
In Argentina, on February 17, 2025, the Company announced the successful completion of the first phase of the two phase exploration joint venture over the El Pantano gold project in Santa Cruz province, Argentina ("Project" or "El Pantano"). This milestone marks a significant step forward in the Company's strategic development of the Project. Having invested US$1m over three years, the Company has now earned a direct 51% interest in the Argentine company, Deseado Dorado S.A.S ("Deseado"), that owns the exploration licences that make up the Project. The Company can now move to the second phase of the JV, that could see it move to 100% ownership of Deseado upon investment of an additional US$2m over two years. Upon such an outcome, the original vendors would then retain a residual 2% NSR royalty, 1% of which the Company could repurchase at its election for US$1m.
Post period end, a geo-physical campaign commenced with the objective of refining targets after which the Company will consider drilling, likely to take place later in 2025 subject to funding.
In Nigeria, the Company will look to make some advances on its lithium project, but at a slower pace whilst lithium prices continue to recover.
In Uruguay, the Company's wholly owned subsidiary, Loryser, continues to focus its activities on the final stages of the Creditors Agreement. In line with the Creditors Agreement, Loryser has sold all of its assets. It has paid for the settlements with all of its former employees; it has finalised the reclamation and remediation works on the tailings dam and has successfully concluded a one-year post-closure control phase. Loryser is well advanced in distributing the proceeds to Loryser's trade creditors in accordance with the Creditors' Agreement, via a Court approved settlement agent.
Financial and Corporate
The unaudited condensed interim consolidated financial statements have been prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are accounted for as Assets and Liabilities held for sale (at the lower of book value or fair value) and Profit and Loss from discontinuing operations. This accounting treatment has been applied to the activities in Uruguay and Chile.
At the Company's AGM, held on December 12, 2024 all resolutions put to shareholders were duly passed.
On December 19, 2024, the Company announced that it had raised the sum of £1.25 million (before expenses) through a placing of 18,939,394 new common shares of no par value ("Placing Share") at a price of 6.6 pence per Placing Share.
On February 28, 2025, the Company had a cash balance of US$ 2,355,000 (May 31, 2024 US$ 1,328,000). As at the date of this MD&A and including the funds raised in the private placement (detailed below), the Company had a cash balance of US$ 5,570,000.
Post period end, on March 27, 2025, the Company announced the closing of an oversubscribed private placement (the "Private Placement") which raised aggregate gross proceeds of C$6,000,000, including the full exercise of the broker's option for gross proceeds of C$1,000.000. Under the Private Placement, the Company sold an aggregate of 35,294,117 units of the Company (the "Units") at a price of C$0.17 per Unit. Each Unit consisted of one common share of the Company (each, a "Unit Share") and one half of one common share purchase warrant (each whole warrant, a "Warrant"). Each whole Warrant entitles the holder to purchase one common share of the Company (each, a "Warrant Share") at a price of C$0.25 at any time on or before March 27, 2027.
Condensed Interim Consolidated Statements of Financial Position (Expressed in thousands of United States dollars) Unaudited
As at
February 28, 2025
$
As at
May 31,
2024
$
ASSETS
Current assets
Cash
2,355
1,328
Restricted cash
12
12
Accounts receivable and other assets
335
279
Assets held for sale in Uruguay
90
226
Total current assets
2,792
1,845
Non-current assets
Property and equipment
322
202
Exploration and evaluation assets
6,394
3,343
Total assets
9,508
5,390
LIABILITIES AND EQUITY
Current liabilities
Accounts payable and accrued liabilities
528
445
Liability of Chile discontinued operation
-
2,376
Liabilities held for sale in Uruguay
10,609
11,208
Total current liabilities
11,137
14,029
Non-current liabilities
Contingency royalties
2,556
-
Total liabilities
13,693
14,029
Equity
Share capital
72,306
69,529
Share-based payments reserve
10,849
10,538
Warrants
919
302
Currency translation reserve
(2,151
)
(1,808
)
Accumulated deficit
(86,099
)
(87,194
)
Total equity attributable to owners of the parent
(4,176
)
(8,633
)
Non-controlling interest
(9
)
(6
)
Total equity
(4,185
)
(8,639
)
Total liabilities and equity
9,508
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
Nine Months Ended
February 28, 2025
$
Nine Months Ended
February 29, 2024
$
Corporate and administrative expenses
(1,384
)
(1,285
)
Exploration expenses
(181
)
(72
)
Share-based compensation
(311
)
-
Other income
52
24
Net finance cost
(11
)
(13
)
Foreign exchange gain net
89
157
Net loss for the period for continuing operations
(1,746
)
(1,189
)
Income (loss) from discontinued operations
2,841
(136
)
Net income (loss) for the period
1,095
(1,325
)
Item which may be subsequently reclassified to profit or loss:
Cumulative translation adjustment
(343
)
821
Total comprehensive income (loss) for the period
752
(504
)
Basic and diluted net income (loss) per share for
- continuing operations
(0.00
)
(0.00
)
- discontinued operations
0.01
(0.00
)
Weighted average number of common shares outstanding
229,999,586
189,057,082
Condensed Interim Consolidated Statements of Cash Flows (Expressed in thousands of United States dollars) Unaudited
Nine Months Ended
February 28, 2025
$
Nine Months Ended
February 29, 2024
$
Operating activities
Net income (loss) for the period for continued and discontinued operations
1,095
(1,325
)
Adjustments for
Depreciation / write downs
16
8
Share-based payments
311
-
Reversed liability and interest accrued
(2,376
)
-
Foreign exchange and other
(606
)
479
Changes in non-cash working capital items:
Accounts receivable and other assets
(8
)
(266
)
Accounts payable and accrued liabilities
(203
)
(35
)
Net cash used in operating activities
(1,771
)
(1,139
)
Investing activities
Purchase of property and equipment
-
(86
)
Exploration and evaluation expenditures
(729
)
(1,025
)
Net cash used in investing activities
(729
)
(1,111
)
Financing activities
Proceeds from issue of common shares, net of shares issuance cost
2,376
486
Proceeds from exercise of options
10
3
Proceeds from exercise of warrants
1,008
-
Net cash provided by financing activities
3,394
489
Net change in cash
894
(1,761
)
Net change in cash classified within assets held for sale
133
(5
)
Cash, beginning of period
1,328
3,748
Cash end of period
2,355
1,982
Operating activities
- continuing operations
738
(1,144
)
- discontinued operations
(2,509
)
5
Investing activities
- continuing operations
(729
)
(1,111
)
Financing activities
- continuing operations
3,394
-
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
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.
Qualified Persons Statement
The information in this news release was compiled, reviewed and verified by Mr. Brad George, BSc Hons (Geology and Geophysics), MBA, Member of the Australian Institute of Geoscientists (MAIG), CEO of Orosur Mining Inc. and a qualified person as defined by National Instrument 43-101.
Orosur Mining Inc. staff follow standard operating and quality assurance procedures to ensure that sampling techniques and sample results meet international reporting standards
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 continuing 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, those described in the Section "Risks Factors" of the Company's MD&A for the year ended May 31, 2024. The Company's continuance as a going concern is dependent upon its ability to obtain adequate financing, to reach profitable levels of operations 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. 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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