The share price of TSX-V-listed Otso Gold fell sharply on Tuesday, as the junior miner announced that management services company Lionsbridge Capital had terminated its services, resulting in CEO Clyde Wesson and VP Brian Wesson resigning with immediate effect.
Clyde and Brian Wesson have been running Otso Gold since 2019, when they were installed by their management-services company.
Otso Gold announced it had retained the services of a chief restructuring officer (CRO) to provide support and expertise to the board to continue ramping up its mine in Finland to full commercial production.
Dan Andersson, MD and head of Nordic Operational Restructuring and CRO Services with Alvarez & Marsal Restructuring and Turnaround (A&M) would act as CRO and interim CEO, responsible for the day-to-day operations of the company.
In addition, Thomas Dillenseger, MD with A&M’s restructuring practice in London, would act as interim CFO. Andersson and Dillenseger would be located at the company’s mine site.
M&A would also assist the board with continuing efforts to refinance its outstanding indebtedness, including the secured indebtedness due on December 7.
Andrey Maruta would transition from CFO to the role of VP corporate finance to assist in securing new long-term financing solutions.
Besides Clyde and Brian Wesson’s resignations, Yvette Harrison had also resigned from the board. Martin Smith resigned for personal reasons and lawyer Christopher Mallon had been appointed as new independent director.
Otso lost one-third of its value, falling to C$0.04 a share.