The Orosur Mining Inc (LON: OMI) share price rallied 9% higher today after the junior miner released operations update about its performance during its fiscal third quarter, which ended on 28 February 2022.
The mining company, whose operations are all in South American countries, including Brazil, Colombia, Argentina, and Uruguay, achieved significant milestones during the three months, including signing multiple joint venture agreements.
Orosur Mining signed a joint venture agreement with Meridian Mining UK Societas (“Meridian”) in Brazil to jointly exploit the potential resources within the Ariquemes tin project (“Project”) in the State of Rondonia, western Brazil.
The agreement signed on 14 January 2022 will see Orosur Mining acquire a 75% stake in the project by investing $3 million over four years in two phases. The first phase requires OMI to invest $1 mln in the project over two years to earn a 50% stake, while the second phase requires a further $2 mln investment over two years for the remaining 25% steak.
Orosur Mining did not stop there but went on to sign another joint venture agreement in Argentina with DESEADO DORADO S.A.S, a private Argentinean company, and its shareholders regarding the El Pantano Gold/Silver Project in the Santa Cruz Province.
The agreement signed by OMI was almost identical to its Brazil JV agreement since the company is expected to spend $3 million on the project to earn a 100% stake in the project over five years. The deal will also be executed in two phases.
Phase one requires OMI to invest $1 million in the project over the first three years to earn a 51% stake. The miner then has to invest a further $2 million over two years to acquire the remaining 49% making it the sole owner of the project.
The two joint ventures give Orosur Mining exposure to two projects, with the Brazil project having significant estimated tin reserves, while the Argentina project has significant gold and silver deposits.
Investors were happy to see all the data within a single release, although the miner had updated the markets on its JVs when it signed them. Its Uruguay project progressed well after a creditor sold some of its shares to meet its debt obligations.
The company had a cash balance of $4,791k compared to $6,958k on May 31, 2021, enough to keep funding its operations.
*This is not investment advice. Always do your due diligence before making investment decisions.
Orosur Mining share price.
Orosur Mining shares surged 9.04% to trade at 11.45p, rising from Thursday’s closing price of 10.50p.
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