London South East were delighted to be joined by the Orosur Mining (OMI) senior team for an exclusive webinar last night (15.5.2023). We were joined live online by Louis Castro, Chairman who took commercial questions, and Brad George CEO who discussed strategy.
This in-depth webinar recording includes a very interesting and revealing deep dive into Anza and how the joint venture there between gold majors Newmont & Agnico and exploration Junior OMI operates, with many questions from investors answered.
* Brad indicates that the preferred option would be to take back control of the Anza asset.
* Louis states quite clearly that the 90 days option in the contract is fairly meaningless as Colombian law has changed since the JV was signed and complex tax implications for Orosur need to be addressed. The route through this is to continue to create a JV company and this IS currently being progressed.
* The JV is governed by instructions in writing, and to date Orosur have only had verbal instructions re care and maintenance. Orosur are pushing as hard as possible for clarity and a strategic decision to be taken quickly.
* Louis makes the point that care and maintenance is expensive and costs around $700,000 per annum. Even for Agnico/Newmont this is not a situation which they will allow to continue forever.
* Brad says that with the change in Government in Colombia last year, the new slightly left-leaning incumbents are less keen on large miners, and many projects have been slowed down whilst the permitting and paperwork is dealt with by the bureaucracy.
Orosur Mining (OMI)