TSXV:OTSO

Shareholder Update

(TheNewswire)



April 7, 2021 TheNewswire - Toronto, ON Otso Gold Corp. (" Otso " or the " Company "), (TSXV:OTSO) is pleased to release the following Shareholders' update.

As announced on February 8, 2021, the Company secured US$11 million in funding required to complete its preparatory works on site in Finland and complete the Company's corresponding drilling campaign (as previously outlined).  The Company is excited to have both the capital and depth of experience that Brunswick Gold Ltd (‘BGL') brings and the path is now clear for the return to production of the Otso Gold Mine. We are pleased to report that the Company is progressing well.

We provide the following update on various developments:

Corporate

The Company reports the resignation of Mark Gelmon as the Chief Financial Officer of the Company to pursue other opportunities. We thank Mark for his service to the Company.

We are pleased to announce that Mr. Andrey Maruta (FCCA) will be joining Otso as our permanent Chief Financial Officer. Andrey has over 18 years of experience in the mining and metals industry across global exchanges including LSE, AIM (LSE), ASX, TSXV  and JSE. Andrey is currently  Group Chief Financial Officer for Kore Potash plc (ASX, AIM, JSE) and was previously Chief Financial Officer of Petropavlovsk plc (LSE). Andrey will bring significant expertise and experience to the management team and will ensure the Company is well-positioned for its return to production. Andrey will be joining the Otso team in June 2021.

Clyde Wesson will assume the duties of interim CFO, until Andrey joins the team in June, in addition to his ordinary duties for the Company.

Operations

As previously announced, the Company is focused on returning to production.  We now have the capital required to complete all preparatory works and a drilling program. The delays in funding and the effects of COVID-19 have affected the Company's plans and we are now targeting a Q3 2021 production date.

The Company is expediting its return to production program and, to this end, in addition to the staffing-up of site since February, 2021, all senior management of Otso will be on-site this month to ensure COVID-19 does not interrupt our plans and that the necessary expertise is available to support the return to production.

Drilling Program

The key to returning the mine to production is ensuring that the Company has sufficient confidence in the ore body to develop a robust mine plan. The strategy in this regard is two-fold.

First, the Company is completing the second phase of its previously announced Drilling Program. To this end, the Company will drill an additional estimated 4,500m of diamond infill drilling. This is expected to provide sufficient confidence in the resource base to publish an independent NI43-101 technical report and mine plan to underpin the recommencement of production. It is expected the Company will continue to drill past the 4,500m once mining commences, for the foreseeable future, to further expand our resource base.

We are pleased to announce that the first drill rig arrived on site in March with a second drill rig to begin in mid this month. The Company is also investigating the possibility of bringing a third rig to site. The Drilling Program is key to our return to production and so the focus is on expediting the program and ensuring sufficient data is collected to provide confidence in the resource base.

The Company expects to release the final results from the first phase of the Drilling Program to the market shortly and will thereafter release results as they become available.

Second, the Company has retained the John T Boyd Company (‘Boyd') as independent engineers. The Company is leveraging the considerable experience that Boyd has with the Otso Gold Mine resources.  Since 2018, Boyd has assisted in designing the current phase of the Drilling Program and at the completion will publish an updated NI43-101 technical report and mine plan to inform the decision to restart the mining operations. Boyd will then update the resources with a view to upgrading to reserves and expanding the resource base as necessary while drilling continues. A Feasibility Study will then be published by Boyd.

Preparatory Works

The Company has retained Knight Piesold Consulting ('KP') to advise on the upgrades to our existing infrastructure and ensure that our water treatment process is capable of managing the planned 2 million tonnes per annum throughput and ensuring consistency with best practices.

We have also commenced discussions with key contractors for production to ensure the necessary infrastructure and capabilities are available to expedite the restart of the mine as soon as the necessary geological work is complete.

The market will be updated regularly on the progress in returning the Otso Gold Mine to production.

"Brian Wesson"

President and CEO
Otso Gold Corp.

For further information, please contact:

Clyde Wesson
Vice President
1 917 287 0716

info@otsogold.com
www.otsogold.com

The technical disclosure in this news release has been reviewed and approved by Gregory B. Sparks P.Eng a Qualified Person as defined by National Instrument 43-101.

Caution

The Company cautions that it has not defined or delineated any proven or probable reserves for the Otso 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 Osto 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 Osto 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 Osto on indicated and inferred resources without first completing a preliminary economic report.


About the Company

Otso Gold Corp. wholly owns the Otso Gold Mine near the town of Raahe in 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)
Map of Ontario, Canada, with "Top 5 Canadian Mining Stocks This Week" text overlay.

Top 5 Canadian Mining Stocks This Week: Onyx Gold Shines with 118 Percent Gain

Welcome to the Investing News Network's weekly look at the best-performing Canadian mining stocks on the TSX, TSXV and CSE, starting with a round-up of Canadian and US news impacting the resource sector.

Statistics Canada released April’s gross domestic product (GDP) numbers on Friday (June 27). The data showed a slowing in the Canadian economy with a 0.1 percent monthly decline after it increased 0.2 percent in March as businesses attempted to get ahead of US tariff deadlines.

In April, the shift in US trade policy led to significant declines in the manufacturing sector, which saw its largest drop in four years at 1.9 percent. Durable goods manufacturing declined for the first time in four months, dropping 2.2 percent d. The most heavily impacted sub-sectors were transportation equipment and the auto sector, which fell 21.6 percent and 5.2 percent, respectively.

Keep reading...Show less
Gold bars with "5 Top Australian Mining Stocks" text overlay.

Top 5 Australian Mining Stocks This Week: GBM Soars on AU$13 Million Raise

Welcome to the first edition of the Investing News Network's weekly round-up of Australia’s top-performing mining stocks on the ASX, starting with news in Australia's resource sector.

In significant news for Australia's iron sector, mining giant Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), together with its joint venture partner Hancock Prospecting, said on Tuesday (June 24) that the partners will invest a combined US$1.6 billion to develop the Hope Downs 2 iron ore project in the Pilbara region, Western Australia.

Companies focused on antimony and gold have also been making news this week, such as Resolution Minerals (ASX:RML) announcing its acquisition of the Horse Heaven project in Idaho, US, and Ausgold (ASX:AUC,OTC Pink:AUSGF) signing an agreement to acquire Critica’s (ASX:CRI,OTC Pink:VTMLF) Kulin gold project in Western Australia.

Keep reading...Show less
Maritime Resources Announces an up to $10 Million Best Efforts Private Placement Financing

Maritime Resources Announces an up to $10 Million Best Efforts Private Placement Financing

Maritime Resources Corp. (TSXV: MAE) ("Maritime" or the "Company") is pleased to announce that it has entered into an agreement with Paradigm Capital Inc. ("Paradigm") as lead agent and sole bookrunner, for and on behalf of a syndicate of agents (collectively, the "Agents"), in connection with a proposed best efforts private placement offering (the "Offering") of up to 8,850,000 common shares in the capital of Maritime (the "Offered Securities") to be issued at $1.13 per Offered Security (the "Issue Price") for gross proceeds of up to $10,000,500.

The Company will also grant the Agents an option (the "Agents' Option") to sell up to an additional 1,327,500 Offered Securities at the Issue Price for additional gross proceeds of up to $1,500,075, exercisable in whole or in part by the Agents at any time 48 hours prior to the Closing Date (as defined herein).

News Provided by Newsfile via QuoteMedia

Keep reading...Show less
Wooden blocks spelling "M&A" on a computer keyboard.

Tudor to Acquire American Creek in Latest Gold M&A Deal

Tudor Gold (TSXV:TUD,OTC Pink:TDRRF) has signed a definitive agreement to acquire American Creek Resources (TSXV:AMK,OTCQB:ACKRF) in an all-share transaction, marking a consolidation in BC's Golden Triangle.

Under the deal, dated Wednesday (June 25), each American Creek shareholder will receive 0.238 shares of Tudor for each share held, effectively giving Tudor an 80 percent ownership stake in the Treaty Creek project — one of Canada’s largest undeveloped gold-copper porphyry systems. American Creek previously held a fully carried 20 percent interest.

"Our acquisition of American Creek increases our interest to 80 percent in the Treaty Creek Project, which hosts one of the largest gold discoveries in Canada with excellent potential for expansion and additional gold-copper discoveries, at a reasonable per ounce of gold equivalent cost," said Joe Ovsenek, Tudor Gold president and CEO, in a press release.

Keep reading...Show less
Gold bars in stacks.

Top 7 ASX Gold ETFs in 2025

The price of gold reached record highs in 2025, driven by global economic uncertainty stemming from shifting US trade policy and escalating geopolitical tensions in the Middle East.

For many investors, gold is a tool for diversification. The precious metal is known for its ability to act as a safe haven and hence operates as a protective option when building a balanced portfolio.

Gold exchange-traded funds (ETFs) give investors a relatively easy way to get exposure to physical gold without having to worry about the extra hassle of buying and storing the metal — not to mention insuring it. Gold ETFs can also track a basket of gold-focused stocks, allowing investors to spread risk instead of betting on individual companies.

Keep reading...Show less

Latest Press Releases

Related News

×