(TheNewswire)
Toronto, ON. – TheNewswire – July 21, 2021 - Otso Gold Corp. (“ Otso ” or the “ Company ”),(TSXV:OTSO) (OTC:FIEIF) ispleased to announce that it has received US$11.155 million from theexercise of 284,944,440 common share purchase warrants (the“ Warrants ”) previously issued to Brunswick Gold Ltd (“ Brunswick Gold ”) ona private placement basis on February 8, 2021 (the “ Transaction ”). Forfurther details regarding the Warrants, see the Company’s pressrelease dated February 8, 2021.
The Company intends to use the proceeds from the exercise of the Warrants to enable it to continuethe Company’s return to production of the Otso Gold Mine, targetedin Q3.
Additionally, the Company expects the previouslyannounced updated NI 43-101 Technical Report from John T. Boyd Companywill be published shortly. The report was delayed as a result of theCompany making the decision to bring further results from previousdrilling compaigns and further results from the current drillingprogram.
For furtherinformation, please contact:
Clyde Wesson
Vice President
1 917 287-0716
info@otsogold.com
www.otsogold.com
Early WarningDisclosure
The following information is providedpursuant to the early warning requirements of Canada’s NationalInstrument 62-104 and National Instrument 62-103 with respect tocommon shares in the capital of the Company (the“ Common Shares ”).
Prior to exercise of the Warrants,Brunswick Gold had beneficial ownership and control over 284,944,440Common Shares and 284,944,440 Warrants, representing approximately46.03% of the issued and outstanding Common Shares on completion on anon-diluted basis, and approximately 63.05% of the issued andoutstanding Common Shares on a partially diluted basis, assuming theexercise of all of the Warrants. Upon completion of the exercise ofthe Warrants, Brunswick Gold acquired beneficial ownership and controlover 569,888,880 Common Shares, representing approximately 63.05% ofthe issued and outstanding Common Shares on a non-diluted basis,
Brunswick Gold first acquired the CommonShares and the Warrants for investment purposes. As described in themanagement information circular prepared by the Company dated December21, 2020 and filed on SEDAR and www.sedar.com and as provided pursuant to the terms of an investor rights agreemententered into between the Company and Brunswick Gold, the Company’sboard of directors was reconstituted on February 8, 2021 to consist ofthe following seven directors: Brian Wesson, Clyde Wesson, YvetteHarrison and four nominees from Brunswick Gold (Vladimir Lelekov,Nicolas Pascault, Victor Koshkin and Martin Smith). Additionally, Mr. Vladimir Lelekov wasappointed as Chairperson of the Board. The investor rights agreementalso granted Brunswick Gold the right to designate a financialcontroller of the Company and certain other customary registration andpreemptive subscription rights in respect of future sales ofsecurities by the Company.
For further information and to obtain acopy of the updated early warning report filed under applicableCanadian provincial and territorial securities legislation inconnection with the Transaction, please go to the Company’s profileon the SEDAR website (www.sedar.com) or contact Andreas Orphanides ataorphanides@brunswickrail.com. Brunswick Gold has its registeredoffice at 2-4 Arch Makarios III Avenue, Capital Center, 9th Floor,Nicosia 1065, Cyprus.
Caution
The Company cautions that it has notdefined or delineated any proven or probable reserves for the OtsoGold Mine Project and mineralization estimates may therefore requireadjustment or downward revision based upon further exploration ordevelopment work or actual production experience. Mineral resourcesthat are not mineral reserves do not have demonstrated economicviability.
The Company also cautions that thedecision by the Company to proceed to develop the Otso Gold MineProject and extract mineralization proceeded without the Company firstestablishing reserves supported by a technical report and completing apre-feasibility or feasibility study. Accordingly, there is a higherrisk of technical and economic failure at Otso because developmentproceeded without first establishing reserves supported by a technicalreport and completing a feasibility study. This is particularlyrelevant as the Company has proceeded with development at Otso onindicated and inferred resources without first completing apreliminary economic report.
Forward-looking Statements
This press release contains forward-looking statementsregarding the Company based on current expectations and assumptions ofmanagement, which involve known and unknown risks and uncertaintiesassociated with our business and the economic environment in which thebusiness operates. All such statements are forward-looking statementsunder applicable Canadian securities legislation. Any statementscontained herein that are not statements of historical facts may bedeemed to be forward-looking statements. By their nature,forward-looking statements require us to make assumptions and aresubject to inherent risks and uncertainties. We caution our readers ofthis press release not to place undue reliance on our forward-lookingstatements as a number of factors could cause actual results orconditions to differ materially from current expectations. Pleaserefer to the risks set forth in the Company's continuous disclosuredocuments that can be found on SEDAR (www.sedar.com) under theCompany’s issuer profile. The Company does not intend, and disclaimsany obligation, except as required by law, to update or revise anyforward-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 theTown of Raahe, Finland. The
Otso Gold Mine is fully built, fully permitted, has allinfrastructure in place, two open pits
and is progressing towards a restart at 2 milliontonnes per annum throughput.
Neither the TSX Venture Exchange norits Regulation Services Provider (as that term is defined in thepolicies of the TSX Venture Exchange) accepts responsibility for theadequacy or accuracy of this release.
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