REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

25/03/2024 07:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20240325:nRSY0320Ia&default-theme=true

RNS Number : 0320I  Orosur Mining Inc  25 March 2024

 

 

 

Orosur Mining Inc - Colombia update

 

·    LOI signed as first step in Orosur reassuming 100% ownership of Anzá
Project

·    Targeting completion of transaction by end of April 2024

·    Planning for reassuming ownership, operatorship and recommencement of
drilling is underway

 

London, March 25, 2024. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), is pleased to announce an update on the status of the
Company's flagship Anzá Project ("Project") in Colombia.

 

The Project is the subject of an Exploration Agreement with Venture Option
("Exploration Agreement") with Colombian company Minera Monte Águila ("MMA").
MMA is itself a 50/50 joint venture between Newmont Corporation ("Newmont")
and Agnico Eagle Mines Limited ("Agnico") and is the Colombian vehicle by
which these two companies jointly exercise their rights and obligations with
respect to the Exploration Agreement over the Project. MMA is the current
operator of the Project.

 

The Exploration Agreement came into effect in September 2018, with the first
phase lasting four years and being successfully completed in September 2022,
such that MMA earned a 51% interest in the Project. The Company and MMA then
began the process of moving toward Phase 2 of the Exploration Agreement, which
included a US$2 million option payment being made to Orosur in early March
2023.

 

Subsequent to this, as announced on May 4, 2023, the Company was informed that
MMA was reviewing its alternatives in respect of the Project and may not
proceed to Phase 2 of the Exploration Agreement.

 

The Company is pleased to announce that on March 22, 2023 it entered into a
non-binding letter of intent with MMA, that provides for a transaction
pursuant to which Orosur would repurchase, directly or indirectly, MMA's
interest in the Project, resulting in Orosur having a 100% ownership of the
Project ("Transaction"). The proposed consideration set out in the letter of
intent is a net smelter return royalty of 1.5% and cash payments of up to
US$15 million payable upon meeting certain agreed production thresholds.

 

Subject to several conditions, including but not limited to, the negotiation
of definitive documentation and the completion of due diligence, the Company
expects that the Transaction can be completed as early as the end of April
2024.

 

Further details of the Transaction remain commercially confidential and will
be disclosed if and when the Transaction is completed.

 

Preparations

 

Concurrently with negotiation of the Transaction, the Company has begun the
process of preparing to reassume ownership and operatorship of the Project.
This involves, among other things, the recruitment of staff, liaising with the
local community, discussions with relevant contractors and suppliers and the
obtaining of various permits required for field operations.

 

Should the Transaction be completed, the Company hopes to be able to
recommence drilling operations as quickly as possible after reassuming
operatorship.

 

Orosur CEO Brad George commented:

 

"After such a long period in abeyance, we are excited at the prospect of
reassuming ownership and control of Anzá at this time of buoyant gold prices
and heightened market interest in precious metals.  Most importantly, the
structure of the Transaction whereby all consideration is deferred and
contingent upon production allows us to immediately direct our resources into
the ground."

 

 

For further information, visit www.orosur.ca (http://www.orosur.ca) , follow
on X @orosurm or please contact:

 

Orosur Mining Inc

Louis Castro, Chairman

Brad George, CEO

info@orosur.ca (mailto:info@orosur.ca)

Tel: +1 (778) 373-0100

 

SP Angel Corporate Finance LLP - Nomad & Broker

Jeff Keating / Caroline Rowe / Kasia Brzozowska

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 (mailto: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 the Anzá Project

 

Anzá is a gold exploration project, comprising three exploration licences,
four exploration licence applications, and a small exploitation permit,
totalling in aggregate 207.5km2 in the prolific Mid-Cauca belt of Colombia.

 

Orosur's interest in the Anzá Project is currently held via its subsidiary,
Minera Anzá S.A.

 

The project is located 50km west of Medellin and is easily accessible by
all-weather roads and boasts excellent infrastructure including water, power,
communications and large exploration camp.

 

The Anzá Project is subject to an Exploration Agreement with Venture Option
dated September 7th, 2018, as announced on September 10th, 2018, between
Orosur's 100% subsidiary Minera Anzá S.A ("Minera Anzá") and Minera Monte
Águila SAS ("Monte Águila"), a 50/50 joint venture between Newmont
Corporation ("Newmont") and Agnico Eagle Mines Limited ("Agnico").

 

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 of those plans, completion of the Transaction to
re-assume 100% of the Anza Project, 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, to reach profitable levels of
operations 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 to, those as described in Section
"Risks Factors" of the Company's MD&A for the year ended May 31, 2023. 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 (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDQKBBQABKDQNB