A court in Uruguay approved the payment plan agreed in December 2018 between Orosur Mining Inc.'s wholly owned unit Loryser SA and its creditors.
The company started a reorganization and credit protection process in June 2018 due to ongoing operational challenges at the San Gregorio gold mine.
The agreement is legally binding on all creditors following ratification by the reorganization court in Montevideo and stops the intervenor's control over Loryser, according to a Sept. 17 release.
The payment plan was accepted by 71.48% of Loryser creditors, under which net proceeds from the sale of its assets in Uruguay and issue of 10 million common shares in Orosur will satisfy all amounts owed to creditors and fund the closure of operations.
The agreement requires Loryser to manage and complete the sale and payment process within two years.
