Otso raises $11m as it begins to move to production

14th December 2020 By: Mariaan Webb - Creamer Media Deputy Editor Online

TSX-V-listed Otso Gold on Monday announced that it had executed a subscription agreement with Brunswick Gold for a strategic investment of $11-million into the company.

Brunswick is a limited liability company incorporated under the laws of Cyprus, acting at arm’s length to Otso, pursuant to which the Investor has agreed to purchase 284 944 440 units, at an issuance price equal to $0.05/unit, for aggregate gross proceeds of $11-million.

On completion, the proposed financing would fully fund Otso to enable it to return its namesake mine, in Finland, to production.

On completion of the financing, the company would immediately restart its detailed directional diamond drilling programme to inform a geological model and detailed mine plan that would be used to move to production in 2021.

Otso said that its secured creditor and its major unsecured creditor in Finland had agreed to defer the payment of certain amounts owing to such parties to December 2021, thereby allowing the company to fund preparatory work.

The Otso gold mine, near the town of Raahe, has nameplate capacity of two-million tonnes a year.