Otso Enters Into Subscription Agreement With Strategic Investor to Raise US$11 Million and Begins to Move to Production
Toronto, ON. – Otso Gold Corp. (“Otso” or the “Company”), (TSX.V:OTSO) is pleased to announce that it has executed a subscription agreement (the “Agreement”) with Brunswick Gold Ltd (the “Investor” or “Brunswick Gold”) for a strategic investment of US$11 million into the Company. Brunswick Gold is a limited liability company incorporated under the laws of the Republic of Cyprus, acting at arm’s length to Otso, pursuant to which the Investor has agreed to purchase 284,944,440 units (each, a “Unit”), at an issuance price equal to $0.05 per Unit, for aggregate gross proceeds of US$11million (the “Financing”).
On completion, the proposed Financing will fully fund the Company to enable it move forward in line with the Company’s previous press releases including the Company’s planned return to production. On completion of the Financing, the Company intends to immediately restart its detailed directional diamond drilling program to inform a robust geological model and detailed mine plan that will be used to move to production in 2021 (the “Preparatory Work”). The Preparatory Work includes the Company’s intention to release an updated technical report that will underpin the Mine Plan.