MONTEVIDEO, Uruguay--(BUSINESS WIRE)--Orosur Mining Inc. (“Orosur” or “the Company”) (TSX: OMI) (AIM:OMI) announces that the Court in Uruguay has approved the payment plan agreement between the Company’s wholly owned subsidiary, Loryser SA (“Loryser”) and Loryser’s creditors (the “Agreement”).
As previously announced, Loryser applied for a reorganization process in June 2018. In December 2018, Loryser proposed the Agreement to which 71.48% of its creditors consented. The public notice period has concluded, without opposition, and the Agreement has now been approved by the Reorganization Court in Montevideo. The Court decree was publicly posted on September 13, 2019. The ratification by the Court means that the Agreement is legally binding on all creditors and that Intervenor’s control over Loryser ceases.
The Agreement provides that the net proceeds from the sale of Loryser’s assets in Uruguay, together with the issuance of 10 million common shares in Orosur, shall fully satisfy all amounts owing by Loryser to its creditors, as well as provide funds for Loryser to conduct this process and manage the orderly closure of its operations. The Agreement requires Loryser to manage and complete the sale and payment process within two years, starting from the date of the ratification by the Court. The issuance of common shares in Orosur is subject to the approval of the Toronto Stock Exchange.
Ignacio Salazar, CEO of Orosur, said:
“Following the strong support received to our proposed Agreement in Uruguay, we are pleased to have completed now the ratification process with the approval from the Court. The ratification means that the Agreement is legally binding on all creditors and that Intervenor´s control over Loryser ceases. This is a significant milestone in achieving a satisfactory conclusion for all stakeholders in Uruguay.”
Forward Looking Statements
All statements, other than statements of historical fact, contained in this news release constitute "forward looking statements" within the meaning of applicable securities laws, including but not limited to the "safe harbour" provisions of the United States Private Securities Litigation Reform Act of 1995 and are based on expectations estimates and projections as of the date of this news release.
Forward-looking statements include, without limitation, the ability to implement the creditors Agreement successfully including approval from the TSX to issue shares as well as continuation of the business of the Company on a going concern and other events or conditions that may occur in the future. The Company’s continuance as a going concern is dependent upon its ability to obtain adequate financing, to reach profitable levels of operations and to reach a satisfactory implementation of the Agreement. These material uncertainties may cast significant doubt upon the Company’s ability to realize its assets and discharge its liabilities in the normal course of business and accordingly the appropriateness of the use of accounting principles applicable to a going concern. There can be no assurance that such statements will prove to be accurate. Actual results and future events could differ materially from those anticipated in such forward looking statements. Such statements are subject to significant risks and uncertainties including, but not limited to, those as described in Section “Risks Factors” of the Company’s most recent Management’s Discussion and Analysis and Annual Information Form. The Company disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events and such forward-looking statements, except to the extent required by applicable law.
About Orosur Mining Inc.
Orosur Mining Inc. (TSX: OMI; AIM: OMI) is a precious metals developer and explorer focused on identifying and advancing gold projects in South America. The Company operates in Colombia and Uruguay.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation ("MAR"). Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain. If you have any queries on this, then please contact Ryan Cohen, VP Corporate Development of the Company (responsible for arranging release of this announcement on behalf of the Company) on: +1 (778) 373-0100.