South America-focused Orosur Mining posted a pre-tax loss of $6.1-million in the quarter ended September 30, a significant increase from a year earlier loss of $384 000, as restructuring costs ballooned following the closure of the company’s Uruguay operations.
Orosur has been restructuring the Uruguay subsidiary, Loryser, since June and in August placed its San Gregorio operation under care and maintenance. The company incurred restructuring costs of $3.3-million in the quarter under review.
The TSX- and Aim-listed firm reported on Monday that it had a cash balance of $1.5-million, of which $400 000 is held by Loryser and is subject to the reorganisation procedures.
Its total debt of $1.9-million is held by Loryser.
Following the closure of the San Gregorio mine, Orosur’s focus has shifted to its exploration project in Colombia. Gold major Newmont has partnered with the junior to advance the high-grade Anzá project.