Orosur shares rally on oversubscribed Colombia financing news
Orosur Mining Inc. [OMI-TSX, AIM] said Friday a previously announced private placement offering that aims to generate gross proceeds of $14 million is oversubscribed and fully allocated.
Orosur shares advanced on the news, rising 10.5% or $0.03 to 31.5 cents. The shares trade in a 52-week range of 76 cents and 23.5 cents.
Under the terms of the offering, the company will issue 43.7 million units priced at 32 cents per unit. The company said it intends to use the net proceeds principally to advance the Anza exploration project in Colombia.
Each unit will consist of one common share and one half of one common share purchase warrant. Each whole warrant will entitle the holder to purchase a common share, (each a warrant share and the warrant shares underlying the warrants with the common shares to be referred to as underlying securities) for US$0.32 (approximately C$0.45) at any time during the period starting 61 days after closing and ending on the date that is 24 months after closing.
The company has granted the underwriting agents an option to sell up to an additional 6.25 million units at the offering price, raising up to an additional $2.0 million. That option can be exercised for up to 48 hours prior to closing, which is expected to occur around October 6, 2025.
“We are delighted at the take up of the offering and the oversubscription in difficult market conditions,’’ said Orosur Executive Chairman Louis Castro. “The proceeds will be spent almost exclusively on drilling at the company’s Anza project in Colombia, including our most recent target at El Cedro,” he said. “The funds will allow us to start to show the true potential of the project.’’
Anza is a gold exploration project, consisting of three exploration licenses, a small exploitation permit and a large number of licence applications covering 399 square kilometres, in the prolific Mic-Cauca belt of Colombia. Orosur is also active in Argentina and Nigeria.
The Anza project is located 50 kilometres west of Medellin and 60 kilometres south of the giant Buritica deposit which was recently acquired by Chinese firm Zijin Mining Group Co. Ltd. for $1.4 billion via a takeover of Continental Gold Inc.
The project is easily accessible by all-weather roads and boasts excellent infrastructure, including water, power and communications as well as a large exploration camp.
The company is focused on three prospects within the Anza Project – Pepas, APTA and El Cedro. All three prospects are within the same granted exploration title that is broken into two, non-contiguous pieces.
El Cedro is a cluster of gold/copper porphyry intrusions and associated flanking hydrothermal systems in the south of the project area.
First drilling commenced at the El Cedro system on August 26, 2026. Assays for the first 61.35 metres have been received, with the entire interval being mineralised, for a composite intersection of 61.35 metres at 0.93 g/t gold. The final sample of this assayed interval returned 1.25 g/t gold.