Otso Gold Announces Proceeds of US$11.155 Million from Warrant Exercise and Corporate Update


Toronto, ON. TheNewswire July 21, 2021 - Otso Gold Corp. (" Otso " or the " Company "), (TSXV:OTSO) (OTC:FIEIF) is pleased to announce that it has received US$11.155 million from the exercise of 284,944,440 common share purchase warrants (the " Warrants ") previously issued to Brunswick Gold Ltd (" Brunswick Gold ") on a private placement basis on February 8, 2021 (the " Transaction "). For further details regarding the Warrants, see the Company's press release dated February 8, 2021.

The  Company  intends  to  use  the  proceeds  from  the  exercise  of  the Warrants  to enable it to continue the Company's return to production of the Otso Gold Mine, targeted in Q3.

Additionally, the Company expects the previously announced updated NI 43-101 Technical Report from John T. Boyd Company will be published shortly.  The report was delayed as a result of the Company making the decision to bring further results from previous drilling compaigns and further results from the current drilling program.

For further information, please contact:

Clyde Wesson
Vice President

1 917 287-0716


Early Warning Disclosure

The following information is provided pursuant to the early warning requirements of Canada's National Instrument 62-104 and National Instrument 62-103 with respect to common shares in the capital of the Company (the " Common Shares ").

Prior to exercise of the Warrants, Brunswick Gold had beneficial ownership and control over 284,944,440 Common Shares and 284,944,440 Warrants, representing approximately 46.03% of the issued and outstanding Common Shares on completion on a non-diluted basis, and approximately 63.05% of the issued and outstanding Common Shares on a partially diluted basis, assuming the exercise of all of the Warrants. Upon completion of the exercise of the Warrants, Brunswick Gold acquired beneficial ownership and control over 569,888,880 Common Shares, representing approximately 63.05% of the issued and outstanding Common Shares on a non-diluted basis,

Brunswick Gold first acquired the Common Shares and the Warrants for investment purposes. As described in the management information circular prepared by the Company dated December 21, 2020 and filed on SEDAR and www.sedar.com and as provided pursuant to the terms of an investor rights agreement entered into between the Company and Brunswick Gold, the Company's board of directors was reconstituted on February 8, 2021 to consist of the following seven directors: Brian Wesson, Clyde Wesson, Yvette Harrison and four nominees from Brunswick Gold (Vladimir Lelekov, Nicolas Pascault, Victor Koshkin and Martin Smith). Additionally, Mr. Vladimir Lelekov was appointed as Chairperson of the Board. The investor rights agreement also granted Brunswick Gold the right to designate a financial controller of the Company and certain other customary registration and preemptive subscription rights in respect of future sales of securities by the Company.

For further information and to obtain a copy of the updated early warning report filed under applicable Canadian provincial and territorial securities legislation in connection with the Transaction, please go to the Company's profile on the SEDAR website (www.sedar.com) or contact Andreas Orphanides at aorphanides@brunswickrail.com. Brunswick Gold has its registered office at 2-4 Arch Makarios III Avenue, Capital Center, 9th Floor, Nicosia 1065, Cyprus.


The Company cautions that it has not defined or delineated any proven or probable reserves for the Otso Gold Mine Project and mineralization estimates may therefore require adjustment or downward revision based upon further exploration or development work or actual production experience. Mineral resources that are not mineral reserves do not have demonstrated economic viability.

The Company also cautions that the decision by the Company to proceed to develop the Otso Gold Mine Project and extract mineralization proceeded without the Company first establishing reserves supported by a technical report and completing a pre-feasibility or feasibility study.  Accordingly, there is a higher risk of technical and economic failure at Otso because development proceeded without first establishing reserves supported by a technical report and completing a feasibility study.  This is particularly relevant as the Company has proceeded with development at Otso on indicated and inferred resources without first completing a preliminary economic report.

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. Any statements contained herein that are not statements of historical facts may be deemed to be forward-looking statements. By their nature, forward-looking statements require us to make assumptions and are subject to inherent risks and uncertainties. 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. 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. 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, Finland. The

Otso Gold Mine is fully built, fully permitted, has all infrastructure in place, two open pits

and is progressing towards a restart at 2 million tonnes per annum throughput.

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.

Copyright (c) 2021 TheNewswire - All rights reserved.

News Provided by TheNewsWire via QuoteMedia

The Conversation (0)
Warriedar Resources

Warriedar Resources Investor Update

This presentation prepared by Warriedar Resources Limited (“Warriedar” or “the Company”), include forward looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward-looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Keep reading...Show less
Warriedar Resources

A$2M Cash From Non-Core Asset Sale

Warriedar Resources Limited (ASX: WA8) (Warriedar or the Company) advises that it has signed a binding agreement for the sale of its residual Golden Range camp assets to Fenix Resources Limited (ASX:FEX) for cash consideration of A$2 million.

Keep reading...Show less
Spartan Resources

High-Grade Focus Delivers 2.48MOZ @ 4.79g/T – 47% Increase in Ounces and 91% in Grade

Aggressive drilling at the flagship Never Never Deposit and the new Pepper discovery outlines 1.87Moz @ 8.65g/t within 2km of the plant

Spartan Resources Limited (“Spartan” or the “Company”) (ASX: Spartan) is pleased to announce the Updated Mineral Resource Estimate (“MRE”) for its 100%-owned Dalgaranga Gold Project “DGP”, located in the Murchison region of Western Australia.

Keep reading...Show less
Gold in a mine cart.

Kula Gold Launches Drill Program at Past-producing Mount Palmer Gold Mine

Kula Gold (ASX:KGD) announced the start of a reverse-circulation drill program at its recently acquired Mount Palmer gold mine asset in the Southern Cross Goldfields last Wednesday (July 17).

“The historic Mt Palmer Gold Mine (formerly known as the Yellowdine Mine) was last commercially mined in 1944 down to the 6th Level (160 meters) at 15.9 grams per tonne,” the company shared in a press release.

The site historically produced approximately 158,000 ounces of gold at 15.9 grams per tonne prior to its closure in 1944. The onset of the Second World War and subsequent mine flooding left the site closed.

Keep reading...Show less

Latest Press Releases

Related News