16th Oct 2019 11:12
(Alliance News) - Orosur Mining Inc is on course with its new strategy, it said on Wednesday, as it looks to restructure operations in Uruguay and Colombia.
In August 2018, Orosur put its San Gregorio mine in Uruguay on care and maintenance due to falling grades, hitting production and increasing costs.
Orosur also signed an exploration agreement with Newmont Mining for the Anza project in Colombia. A first payment was received in April, and another in August, totalling USD1 million. Another USD1 million is due in two payments in 2020.
During the quarter to August 31, Orosur made progress in Uruguay after coming to an agreement with creditors, which will see the proceeds from the sale of assets, alongside the issue of 10 million Orosur shares, fully satisfy debt owned to creditors.
Looking ahead, the plan is to continue work at Anza and finalise asset sales in Uruguay. Orosur had cash of USD548,000 at the end of August, up a bit from USD512,000 in May.
Shares were 7.9% higher on Wednesday in London at a price of 3.50 pence each.
By George Collard; [email protected]
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