REG - Orosur Mining Inc - Colombia update

Orosur MiningAnnouncement

03/06/2024 07:00

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RNS Number : 7521Q  Orosur Mining Inc  03 June 2024

 

 

 

 

Orosur Mining Inc - Colombia update

 

·    Acquisition of MMA progressing

·    Final negotiations will extend into June

·    Company well advanced in preparations to reassume control of Project

 

 

London, June 3, 2024. Orosur Mining Inc. ("Orosur" or the "Company")
(TSXV/AIM:OMI), announces 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 SAS
("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 under the Exploration Agreement in respect of the Project. MMA is
the current operator of the Project.

 

As announced on March 25(th), 2024, Orosur entered into a non-binding letter
of intent ("LOI") with MMA and affiliates of Newmont and Agnico, that provided
for the acquisition of MMA, resulting in Orosur acquiring, directly or
indirectly, a 100% legal and beneficial ownership of the Project
("Acquisition"). The proposed consideration for the Acquisition is a 1.5% net
smelter royalty and deferred cash payments which are all wholly contingent on
future production.

 

Discussions are progressing and negotiations and the finalisation of
definitive documentation will extend into June. The Acquisition is subject to
approval by the TSXV and compliance with certain Canadian securities laws,
including Multilateral Instrument 61-101 - Protection of Minority Security
Holders in Special Transactions ("MI 61-101"), given that one of the parties
is Newmont which is a 14% shareholder in Orosur (and therefore a related party
under the rules for both the TSXV, AIM and MI 61-101).

 

Logistics and Planning

While final negotiations continue, the Company's technical and commercial
teams have, over the last month, been undertaking the necessary planning and
community consultation to allow it to reassume operatorship of the Project as
quickly as possible after completion of the Acquisition.

 

 

 

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, finalisation and execution of
definitive agreements relating to the Acquisition; completion of the
acquisition 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 also 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,
successful negotiation and execution of definitive documents relating to the
Acquisition, approval of the TSXV, reliance on exemptions from shareholder
approval of the Acquisition, and those other risks and uncertainties 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.

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