Orosur Mining Inc. ("Orosur" or "the Company"), a South American-focused gold developer and explorer is pleased to announce the start of exploration activities with Newmont at the Anzá project in Colombia and provide an update on the Uruguayan reorganisation process.
Start of Exploration Activities in Colombia
Exploration activities at the Anzá project have been initiated within the scope of the Exploration Agreement with Venture Option with Newmont Colombia SAS, a subsidiary of Newmont Goldcorp ("Newmont"). The Company has already relogged 2,400 metres of the drill core from an area north of APTA. This is the area where a new broad zone of gold mineralization covering a continuous strike of 450m was discovered by Orosur during the 2018 drilling campaign. Geophysical and geochemical reinterpretation is now planned at the Anzá project. The objective of this initial activity, which requires no field work, is to update the geological model, in conjunction with Newmont.
Update on Uruguay Reorganization Process
As announced in December 2018, Loryser SA ("Loryser"), the Company's primary Uruguayan subsidiary, reached an agreement to cease Loryser's creditor protection process, with the majority of its creditors ("the Agreement") with a final endorsement of approximately 72% of creditors by value.
Pursuant to the Uruguayan Reorganization Act, the Intervenor reviewed the legitimacy of the creditors' debt claims and prepared the final list of creditors. The Court and the Intervenor are in the last stages finalising the process and publishing the Agreement for ratification. Although the process has run its course without any significant incidents, it is progressing slower than expected due to the high number of national and international creditors involved; totalling approximately 200, of which some 30 filed a late claim. As a result of this and also the Uruguayan judiciary holidays in July, the Company now expects the ratification process to be extended well into the second half of calendar 2019. Once approved by the Court, the Agreement will be legally binding on all of Loryser's creditors and Loryser's creditor protection status will cease together with the Intervenor's control over Loryser.
Loryser has already started implementing some of the commitments included in the Agreement; most notably advancing the remediation of the tailings dam. The dewatering of the tailings dam was almost completed during the recent summer months in the Southern hemisphere (which made the activity significantly more efficient), having successfully dewatered and treated approximately 1,000,000 cubic metres of material. This work represents approximately 40% of the total remediation work in the tailings dam.