alvarez & marsal

Otso Gold Announces Appointment of Chief Restructuring Officer; Resignation and Appointment of Directors; Resignation of Lionsbridge PTY Ltd and Provides Corporate Update

Trading Symbol: TSX-V: OTSO

 Otso Gold Corp. (" Otso " or the " Company "), (TSXV: OTSO) is pleased to announce the appointment of Alvarez & Marsal Nordic AB to provide Chief Restructuring Officer (" CRO ") and other services to the Company and to provide the following corporate update to shareholders.

As part of the Company's ongoing efforts to return the Otso Gold Mine to full commercial production, the Company has retained the services of a CRO in order to provide additional support and expertise to the board of directors of the Company in connection with the ramp-up of the Company's operations. These appointments continue the Company's efforts to ensure operations are long-term, sustainable, profitable and conducted in accordance with best practices.

Mr. Dan Andersson , Managing Director and Head of Nordic Operational Restructuring and CRO Services with Alvarez & Marsal Restructuring and Turnaround, will act as CRO and interim Group Chief Executive Officer (CEO) responsible for day-to-day operation of the Company, bringing over 15 years of experience as a Chief Restructuring Officer and board advisor. In addition, Mr. Thomas Dillenseger , Managing Director with Alvarez and Marsal's restructuring practice in London , will act as interim Group CFO to the Company, with over 20 years of experience in financial and operational restructuring, performance improvement and interim management. The CRO and Group CFO will report to the board of directors. Both Messrs Andersson and Dillenseger are now located at the Company's Mine Site.

In addition to management and operational services and expertise, A&M will also provide support to the board of directors in connection with the Company's continuing previously disclosed efforts to secure the refinancing of its outstanding indebtedness, including the secured indebtedness due on December 7, 2021 .

In connection with the appointment of the CRO/CEO and the new interim Group CFO, the Company also announces that it intends that Mr. Andrey Maruta will transition from the role of Chief Financial Officer of the Company to Vice President, Corporate Finance in order to continue to assist with the Company's efforts to secure new long-term financing solutions.

The Company today also announces that Ms. Yvette Harrison and Messrs Clyde and Brian Wesson (being all the nominee directors of Lionsbridge) resigned from the board of directors of the Company. Clyde and Brian Wesson also resigned from their senior leadership positions with the Company as Chief Executive Officer and Vice President, respectively. Under a services agreement (" Services Agreement ") between the Company and Lionsbridge Capital Pty Ltd (" Lionsbridge "), Lionsbridge provided both Clyde and Brian Wesson to manage the Otso Gold Mine.  In light of Lionsbridge's abrupt termination today of the Services Agreement, the Board of Directors is taking immediate steps to ensure that all senior leadership roles and responsibilities are transitioned to A&M in the short term. In this regard, the Board of Directors has also initiated an immediate review of management practices and operations, including for compliance with the Company's internal policies and ethical standards. This review is underway, and while the results cannot be pre-judged, the Company reiterates its commitment to good corporate governance. The Company will update the market on the results of this review, including with respect to any further significant operational matters.

In addition, the Company also announces the resignation of Mr. Martin Smith for personal reasons and that it has appointed a new independent director to replace Mr. Smith's vacancy, Mr. Christopher Mallon , to the board of directors.  Mr Mallon, a lawyer by training, is a founding partner of Fulcrum Partners which provides advice to stressed and distressed companies. Mr Mallon has also had extensive experience as a practicing lawyer in all forms of corporate restructurings including being a partner of Skadden Arps, Slate, Meagher & Flow (UK) LLP from November 2007 to December 2018 ; a partner at Weil Gotshal & Manges from October 2001 to November 2007 ;  a senior manager at Freshfields Bruckhaus Deringer from January 1999 to October 2001 ; and prior thereto, a partner or assistant solicitor with other notable law firms.  Mr Mallon holds a BA, B Juris and LLB. He was admitted as a barrister and solicitor of the Supreme Court of Western Australia in 1982 and was admitted as a solicitor in England in 1987. As a result of the above described resignations, the Company now has four directors.

Forward-looking Statements

This press release contains forward-looking statements regarding the Company based on current expectations and assumptions of management, which involve known and unknown risks and uncertainties associated with our business and the economic environment in which the business operates. All such statements are forward-looking statements under applicable Canadian securities legislation, and any other applicable law or regulation of any other jurisdiction. Any statements contained herein that are not statements of historical facts, including statements regarding our future results of operations or financial condition, business strategy and plans and objectives for future operations, may be deemed to be forward-looking statements. Specific forward-looking statements in this press release include, but are not limited to: statements with respect to operations at the Otso Gold Mine; statements with respect to the Company's efforts to source a refinancing of outstanding indebtedness, what the terms or timing of such a refinancing or similar transaction might be, and that certain of the Company's secured creditors will have the right to demand immediate repayment of all outstanding indebtedness and to initiate steps to enforce their rights; statements that the Company will provide updates when further disclosure is required or otherwise appropriate; and statements regarding the future composition of the board of directors. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. You should not rely on forward-looking statements as predictions of future events.  We caution our readers of this press release not to place undue reliance on our forward-looking statements as a number of factors could cause actual results or conditions to differ materially from current expectations. The results, events and circumstances reflected in the forward-looking statements may not be achieved or occur, and actual results, events or circumstances could differ materially from those described in the forward-looking statements.  Please refer to the risks set forth in the Company's continuous disclosure documents that can be found on SEDAR ( www.sedar.com ) under the Company's issuer profile. New risks and uncertainties emerge from time to time, and it is not possible for us to predict all risks and uncertainties that could have an impact on the forward-looking statements contained in this press release. The Company does not intend, and disclaims any obligation, except as required by law, to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

About the Company

Otso Gold Corp. wholly owns the Otso Gold Mine near the Town of Raahe in Finland . The Otso Gold Mine is developed, fully permitted, has all infrastructure in place, two open pits  and is currently in the ramp-up towards commercial production at name plate capacity of 2 million tonnes per annum.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

SOURCE Otso Gold Corp.

View original content: https://www.newswire.ca/en/releases/archive/November2021/30/c3905.html

News Provided by Canada Newswire via QuoteMedia

The Conversation (0)
Otso Gold

Otso Gold

Overview

Otso Gold Corp (TSXV:OTSO) is a gold company nearing production at its wholly-owned Otso Gold Mine in the premiere mining jurisdiction of Finland. The past operating mine complex, which includes the 2 million tonne per annum processing plant, is fully built, licensed, and permitted. The company has advanced through a phased redevelopment plan that is reaching its conclusion with the return to long-term, sustainable production. Moving forward, Otso Gold will launch an extensive exploration and drilling program across the lease areas with a view to expand the life of mine.

The redevelopment plan was centered on gaining an in-depth understanding of the mine areas to inform a comprehensive mine plan. Otso Gold Corp understands that a successful restart is contingent on a robust mine plan and in-depth knowledge of the deposit’s geology. Importantly, Otso Gold have built a team of diverse and highly skilled technical professionals to carry out each phase of the redevelopment plan and sustain production.

Located in Finland, Otso Gold operates within one of the world’s leading mining jurisdictions. In 2018, Forbes ranked Finland as the world’s second-best country for property rights while the Fraser Institute ranked Finland third-best in the world for mining policies, owing to the government’s support of mineral exploration and production. Finland has a 20 percent corporate tax rate and gold producers pay a low royalty of 0.15 percent. Otso Gold seek to leverage technological innovation and ESG standards to promote sustainable mining practices. This includes;

  • Over 70 percent of power is carbon neutral
  • In partnership with Neste, all vehicles on site will run on renewable diesel
  • Advanced, continuous environmental monitoring systems across the site.

Otso Gold received US$11.155 million from the exercise of 284,944,440 common share purchase warrants previously issued to Brunswick Gold Ltd (“Brunswick Gold”) on a private placement basis on February 8, 2021. The Company allocated the proceeds  from  the  exercise  of  the Warrants  toward continuing the Company’s return to production of the Otso Gold Mine, targeted in Q3.

Otso Gold’s Company Highlights

  • Executed redevelopment plan nearing completion in Q3, 2021.
  • Over 70% of power is carbon neutral with cutting-edge environmental monitoring systems in place.
  • Well-funded, fully-permitted and licensed past-producing mine.
  • Low-cost mining operation with two open pits and a 2 million tonne per annum processing plant.
  • Proven recoveries of 87.5 percent.
  • Further exploration potential.
  • Received US$11.155 million to start production of its Otso Gold Mine

Otso Gold’s Flagship Project

Bringing Finland’s Otso Gold Mine Back into Production

The fully-built Otso Gold Mine is located near the town of Raahe, Finland. The access to skilled labor and infrastructure in this established mining jurisdiction directly benefits the Otso Gold Mine. Infrastructure includes low-cost power on-site, a network of paved all-weather roads leading to the mine site, a seaport within twenty minutes and an airport within an hour of the mine site. The €250 million Otso Gold Mine operation includes two developed pits and a completely built 2 million-tonne throughput process plant designed by Metso and Outotec.

The well-defined mineralized zone on the Otso Gold Mine is one of the largest gold resources in the region.

*The materials remaining in the low-grade stockpile from the previous production has been included in the measured category as it is ready to be fed to the mill at start-up. The sulphidic waste rock dump (potentially acid-forming) is included in the inferred category of the estimate as it is considered to be above the planned cut-off grade of 0.3 g/t Gold.

Mine and processing plant

The Otso Gold Mine operation consists of two open pits: the 50-meter-deep North Pit and the 25-meter deep South Pit. Otso Gold Corp’s mine plan emphasizes grade control and reconciliation. Conservative estimates for mining costs come in at €506 per gold ounce.

The plant has a proven operating recovery of 87.5 percent gold at a process cost of €305 per gold ounce. Having already operated in 2019, the processing plant is production-ready with minimal CAPEX required to return to production.

Otso Gold’s Management Team

Vladimir Lelekov – Chairman of the Board

Mr. Lelekov currently serves as Chairman of Brunswick Rail, the largest railcar operating leasing company in Russia. Prior thereto, Mr. Lelekov was CEO of Brunswick Rail from 2006 to February 2013 and returned to the company in May 2017. In 2014, Mr. Lelekov acquired an interest in OOO “Liga-Trans” (one of the largest companies in the sector of collection and environmentally friendly waste disposal) and assumed the position of the Chairman of the Board of the company until 2017.

Brian Wesson – President, Chief Executive Officer & Director

Mr. Brian Wesson has extensive experience spanning a career of over 40 years in the management, operation design and construction of natural resource operations globally. He qualified as an engineer in South Africa, gained an MBA in Australia, studied Economics at the University of South Africa and is a fellow of the Australasian Institute of Mining and Metallurgy and a fellow of the Australian Institute of Company Directors.

Clyde Wesson – Vice-President and Director

Clyde Wesson has significant experience in all aspects of the management of corporate entities, both listed and unlisted. His expertise includes the restructuring and recapitalizing of distressed assets, corporate finance, design and execution of corporate strategy, legal management and bringing assets to market. Wesson holds bachelor’s degrees in both Law and Commerce (LLB, B.Com) and is currently a candidate for a Master’s of Law (LLM) from Melbourne University (2019). He is a solicitor and member of the Supreme Court of NSW and a member of the Australian Institute of Company Directors, Australian Institute of Mining and Metallurgy and the Law Society of NSW.

Yvette Harrison – Chief Financial Officer

Ms. Harrison is a Chartered Professional Accountant with over 20 years of experience in permanent positions as well as in bridge leadership consulting roles with organisations in “immediate-need” situations in mining, real estate investments, technology, forest products, manufacturing and not-for-profit. She has worked as Chief Financial Officer, VP Finance, Director Finance, Controller and Consultant with numerous public and private companies as well as not-for-profits. She also has worked in public practice. Ms. Harrison received her CGA designation from the Certified General Accountants Association of British Columbia in 2002.

Nicolas Pascault – Director

Mr. Pascault serves as CEO of Brunswick Rail, the largest railcar operating leasing company in Russia, a position he has held since November, 2016. Mr. Pascault joined Brunswick Rail in 2004 as Managing Partner and CFO. In January 2015, Mr. Pascault assumed the position of Deputy CEO, reporting directly to the Chairman, and was asked by the Board to support a bond restructuring. Prior thereto, Mr. Pascault served as CFO of Danone Group in Russia from 1998 to 2004 and, from 1990 to 1998, Mr. Pascault worked at Ernst & Young in Moscow, St. Petersburg and Paris in the Audit and Corporate Finance Department. Mr. Pascault graduated from the Institut d’Etudes Politiques of Paris and holds a Master of Finance degree from the University of Paris II.

Victor Koshkin – Director

Mr. Koshkin serves as General Director of Brunswick Rail Management, a management company for Brunswick Rail, the largest railcar operating leasing company in Russia. Prior thereto, from 2003 to 2010, Mr. Koshkin worked in Moscow as CFO at Integrated Energy Technologies, Deputy Head of Business Development at SUAL, and adviser to shareholders of MDM Group. Mr. Koshkin served on the board of privately owned Samara Transformer. Prior to that, from 1996 to 2001, Mr. Koshkin worked as an investment banker at JP Morgan and Lehman Brothers in New York. Mr. Koshkin holds an MBA degree from Harvard Business School and a BA degree in Economics from Wabash College.

Martin Smith – Independent Director

Mr. Smith is an Independent Mining Consultant with over 40 years’ experience in open pit mining. From 2006 to 2015, Mr. Smith was Technical Director of Petropavlovsk Plc (formerly Peter Hambro Mining) based in the Russian Far East and overseeing three large open pit gold mines and their associated processing plants producing c.500,000 ounces of gold per year. Prior thereto, Mr. Smith worked as Country Director for Joy/P&H in India; General Manager of Comedat Phosphate in Jordan and Chief Mining Engineer for Costain Mining Ltd. Martin holds a BSc in Mining Engineering from the Royal School of Mines, Imperial College of Science, London.

Keep reading...Show less

Emerging Mid-Tier Green Gold Producer

Metal Bank

MBK Due Diligence Completed & Whiteheads Drilling Commencing

Metal Bank Limited (ASX:MBK) (‘MBK’ or ‘the Company’) announced on 10 September 2025 that it has signed a non-binding term sheet (Term Sheet) with Hastings Technology Metals Ltd (ASX:HAS) (HAS) for the acquisition of the gold assets of HAS, (subject to due diligence, binding documentation and other conditions precedent including shareholder approval) (Proposed Acquisition), and has commenced a scoping study for the Kingsley and Homestead deposits at the Livingstone Project, furthering its Western Australian focussed gold strategy to expand MBK’s WA gold portfolio and move to production.

Keep reading...Show less
John Feneck, gold bars.

John Feneck: Next Gold, Silver Price Targets, 11 Stocks I'm Bullish on Now

John Feneck, portfolio manager and consultant at Feneck Consulting, shares his outlook for gold and silver prices in 2025. His next target for gold is US$3,800 per ounce, and he still expects US$50 per ounce silver by the end of the year.

He also discusses the potential he sees in junior miners.

Keep reading...Show less
Sun Summit Minerals CEO Niel Marotta.

Sun Summit Minerals Eyes "Multimillion-Ounce" Gold Deposit at JD Project

Sun Summit Minerals (TSXV:SMN,OTCQB:SMREF) is advancing toward a multimillion-ounce resource at its flagship JD gold project in BC following “fantastic” results from the first drill hole, which showed high-grade, shallow mineralization, according to CEO Niel Marotta.

“The thesis here is that, if we prove up a multimillion-ounce deposit, we really think there's 10x potential in our market cap. We're trading at about a C$40 million market cap now, which is about 10 percent of our neighbors. So that, I think, is what people ought to focus on,” he said.

In a recent announcement, Sun Summit reported that the first hole completed in 2025 returned “one of the strongest intervals of consistent and near-surface gold mineralization” drilled to date at the Creek zone. Results include 78 meters of 3.72 grams per ton gold starting at 30 meters down hole. The company plans to conduct follow-up drilling this season.

Keep reading...Show less
Angkor Resources

Angkor Resources

Keep reading...Show less

Latest Press Releases

Related News

×