Orosur reports increased cash, operational progress

(Sharecast News) - Orosur Mining reported a sharp increase in cash and continued operational progress across its Colombian and Argentine assets in its unaudited results for the second quarter on Monday, following a heavily oversubscribed equity raise completed during the period.

The AIM-traded group said it ended the three months ended 30 November with cash of $16.3m, up from $4.9m on 31 May, reflecting the completion of a CAD 20m brokered private placing in October.

In Colombia, Orosur said infill drilling continued throughout the quarter at the Pepas gold prospect within the Anzá project, with the aim of delivering a NI 43-101 compliant mineral resource estimate.

The company said drilling had "firmed up the Pepas deposit" and improved definition of the thick, high-grade mineralisation, with results broadly in line with expectations.

It said the mineral resource estimate was expected by the end of January.

At the nearby El Cedro prospect, a large-scale soil geochemical survey outlined a substantial gold-bearing porphyry system, with soil assays locally exceeding one gram of gold per tonne, while integration of new geochemical data with historic mapping and airborne geophysics identified a second porphyry system to the south within the same structural corridor.

In Argentina, Orosur said it has earned a direct 51% interest in Deseado Dorado, which holds the El Pantano project in Santa Cruz province, and had now moved into the second phase of the joint venture.

Under the phase, the company could increase its interest to 100% by investing a further $2m, largely to fund a 3,000-metre drill programme that commenced in November and was expected to finish in early 2026.

Initial drilling confirmed a low sulphidation epithermal system, with assays pending.

The firm also said it had decided to withdraw from its lithium project in Nigeria to prioritise capital and human resources.

It said the Nigerian investment was fully impaired in the accounts as at 31 May 2025 and remained fully impaired.

For the six months ended 30 November, Orosur reported a net loss of $4.5m, compared with net income of $1.9m a year earlier, reflecting higher share-based compensation and a $2.5m loss on the fair value of warrants.

Net cash used in operating activities was $1.3m, while exploration and evaluation expenditure totalled $1.8m.

Financing activities generated net cash of $14.5m over the period, driven by the equity raise and the exercise of options and warrants.

At 1358 GMT, shares in Orosur Mining were up 7.06% at 39.88p.

Reporting by Josh White for Sharecast.com.

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