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Orosur Mining Inc. a?? Second Quarter 2019/20 Results

Orosur Mining Inc. ("Orosura?? or "the Companya??) (TSX/AIM: OMI), a South American-focused gold developer and explorer announces the results for the second quarter ended November 30, 2019 ("Q2 20a?? or the "Quartera??).


HIGHLIGHTS





In accordance with the Exploration Agreement with Venture Option (the "Exploration Agreementa??), Newmont Colombia made a further cash payment of US$690k to Minera AnzA? in November 2019 to cover its outstanding commitments and to maintain its Phase 1 earn-in rights.






In Uruguay, as announced on September 17, 2019, the Court approved the payment plan agreement between the Companya??s wholly owned subsidiary, Loryser SA ("Lorysera??) and Lorysera??s creditors (the "Creditorsa?? Agreementa??). The ratification by the Court means that the Creditorsa?? Agreement is legally binding on all trade creditors and that the intervenora??s control over Loryser ceases.






The Creditorsa?? Agreement provides that the net proceeds from the sale of Lorysera??s assets in Uruguay, together with the issuance of 10 million common shares in Orosur, shall fully satisfy all amounts owing by Loryser to its trade creditors, as well as provide funds for Loryser to conduct this process and manage the orderly closure of its operations. The Creditorsa?? Agreement requires Loryser to manage and complete the sale and payment process within two years, starting from the date of the ratification by the Court.






As announced on December 6, 2019, 10,000,000 common shares were issued to a trust for the benefit of Lorysera??s creditors in accordance with the court-approved agreement.






The non-binding letter of intent signed in November 2019 with IMC International Mining Corp. expired on December, 27, 2019 without completing a definitive agreement. Loryser remains in discussions with IMC as well as considering alternative options with other potential partners to sell its mining and exploration permits in Uruguay.








The Company had a cash balance of US$809k at November 30, 2019 (May 31, 2019: US$512k).






Assets held for sale in Uruguay have been recorded in this quarter and in the FY19 consolidated financial statements at the lower of book value or fair value. The consolidated financial statements were prepared on a going concern basis under the historical cost method except for certain financial assets and liabilities which are accounted as Assets and Liabilities held for sale and Profit and Loss from discontinuing operations: this accounting treatment has been applied to the activities in Uruguay and Chile.





Outlook and Strategy


During the year ended May 31, 2018, the Board adopted an aggressive strategic plan to restructure its business, and recapitalize and transform the Company. The Companya??s main objectives were advancing the AnzA? Project: the Companya??s flagship, high grade gold exploration asset in Colombia; finding a fair solution in Uruguay for all stakeholders; and reducing its activities in Chile. This strategy remains unchanged.


In Colombia, Newmont Colombia has fulfilled its Year 1 commitments and payments under the requirements of the Exploration Agreement.
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