Orosur Mining Inc.
Orosur Mining (OMI) has announced a modest fundraise of £0.50m (gross) through an equity placing priced at 2.95p/share, together with a grant of one unlisted warrant (‘Warrant’) at 50% premium for every Placing share subscribed (together the ‘Placing’). With cash-in-hand of c.US$1.7m (c.£1.4m) at end-January 2024, the Group was already more than able to fund its corporate overhead into 2025. The additional funds, however, will enable it to complete its move away from the primarily passive phase it assumed since 2018 (during which exploration funding was provided through its major JV partners), to become an active explorer once again.
Given that the uncertainty generated amongst the international mining community following the appointment of Gustavo Petro’s left-wing administration in 2022 has now largely receded, amid surging support for more right-leaning and more investment-friendly opposition parties, the timing looks good. Improved sentiment toward funding early-stage mineral exploration across Colombia, appears set to coincide with Orosur reclaiming 100% control of its flagship Anzá Gold Project (the ‘Anzá Project’).
Pledging to direct all of yesterday’s net new funding into the ground, the Board plans to progress its early-stage projects this year, all of which are considered world class in terms of district and potential scale. With the majors having left Anzá with a number of ‘walk up’ drill-ready targets for when the negotiations complete, the Placing proceeds will instead be directed to rapidly advance and add value to the Group’s projects in Nigeria, and South America. This is likely to include a first drill program for Lithium West in Nigeria while also defining targets at El Pantano in Argentina. With over of 12 months forward runway now in hand, the Group can be expected to generate significant news flow in the coming weeks and months.
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