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Orosur Mining Inc. a?? Third Quarter 2020 Results & Board Change

Orosur Mining Inc. ("Orosura?? or "the Companya??) (TSX/AIM: OMI), a South American-focused gold developer and explorer, is pleased to announce the results for the third quarter ended February 29, 2020 ("Q3 20a?? or the "Quartera??) as well as the appointment of Louis Castro, aged 61, as Chairman and Non-Executive Director of the Company to replace Robert Schafer, who has retired from the Company's board.


HIGHLIGHTS





In accordance with the Exploration Agreement with Venture Option over the AnzA? project in Colombia (the "Exploration Agreementa??) with Newmont Colombia S.A.S. ("Newmonta??), Newmont made a cash payment of US$690k to Minera AnzA? in November 2019 to cover its outstanding commitments for the first Year of the Exploration Agreement (September 2018 to September 2019) and to maintain its phase 1 earn-in rights.






In Uruguay, the Creditors Agreement was finally approved by the Court in September 2019 and, as a result, became legally binding on all trade creditors. During Q3 20, Loryser focused its activities in the implementation of the Creditors Agreement and the sale of its Uruguayan assets. As agreed in the Creditors Agreement, on December 19, 2019, Orosur issued 10,000,000 common shares to a trust for the benefit of Lorysera??s creditors.






As at February 29, 2020, the Company had a cash balance of US$463k (May 31, 2019 - US$512k).






After the end of the Q3 20, as previously announced on March 5, 2020, an additional cash payment of US$500k was received by the Company from Newmont, in connection with maintaining its earn-in rights pursuant to the Exploration Agreement.






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 for 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


The Board adopted an aggressive strategic plan to restructure its business, and recapitalize and transform the Company by advancing its AnzA? project in Colombia (now with Newmont as a partner), whilst progressing other opportunities, as well as finding a fair solution in Uruguay for all stakeholders. This strategy remains unchanged.


In Colombia, Newmont met its Year 1 commitments and payments pursuant to the Exploration Agreement. In March 2020, Newmont made the third US$500k cash payment to Orosur with the fourth and final payment of this sort expected in September 2020.
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