Orosur Mining Inc. said Dec. 18 that Uruguayan subsidiary Loryser SA reached a payment plan agreement with the majority of its creditors in the country.
The company started a reorganization and credit protection process in June due to ongoing operational challenges at the San Gregorio gold mine.
Loryser's owed amounts and the costs required to close down the operation responsibly will be covered by giving the net proceeds from the sale and 10 million Orosur shares to the creditors. Loryser will manage the entire process, which is expected to take two years.
The subsidiary has so far put these terms to 90% of the creditors by value, and 68% of creditors by value have executed them to date.
The payment deal is subject to a number of customary approvals, and Orosur expects this process to conclude in the first half of 2019. Once fully approved, the agreement will be legally binding for all creditors.