Trading Symbol: TSX-V: OTSO
TORONTO, Nov. 30, 2021 /CNW/ - Otso Gold Corp.
("Otso" or the "Company"), (TSXV: OTSO) is
pleased to announce the appointment of Alvarez & Marsal Nordic
AB to provide Chief Restructuring Officer ("CRO") and other
services to the Company and to provide the following corporate
update to shareholders.
As part of the Company's ongoing efforts to return the Otso Gold
Mine to full commercial production, the Company has retained the
services of a CRO in order to provide additional support and
expertise to the board of directors of the Company in connection
with the ramp-up of the Company's operations. These appointments
continue the Company's efforts to ensure operations are long-term,
sustainable, profitable and conducted in accordance with best
practices.
Mr. Dan Andersson, Managing
Director and Head of Nordic Operational Restructuring and CRO
Services with Alvarez & Marsal Restructuring and Turnaround,
will act as CRO and interim Group Chief Executive Officer (CEO)
responsible for day-to-day operation of the Company, bringing over
15 years of experience as a Chief Restructuring Officer and board
advisor. In addition, Mr. Thomas
Dillenseger, Managing Director with Alvarez and Marsal's
restructuring practice in London,
will act as interim Group CFO to the Company, with over 20 years of
experience in financial and operational restructuring, performance
improvement and interim management. The CRO and Group CFO will
report to the board of directors. Both Messrs Andersson and
Dillenseger are now located at the Company's Mine Site.
In addition to management and operational services and
expertise, A&M will also provide support to the board of
directors in connection with the Company's continuing previously
disclosed efforts to secure the refinancing of its outstanding
indebtedness, including the secured indebtedness due on
December 7, 2021.
In connection with the appointment of the CRO/CEO and the new
interim Group CFO, the Company also announces that it intends that
Mr. Andrey Maruta will transition
from the role of Chief Financial Officer of the Company to Vice
President, Corporate Finance in order to continue to assist with
the Company's efforts to secure new long-term financing
solutions.
The Company today also announces that Ms. Yvette Harrison and Messrs Clyde and
Brian Wesson (being all the nominee
directors of Lionsbridge) resigned from the board of directors of
the Company. Clyde and Brian Wesson
also resigned from their senior leadership positions with the
Company as Chief Executive Officer and Vice President,
respectively. Under a services agreement ("Services
Agreement") between the Company and Lionsbridge Capital Pty Ltd
("Lionsbridge"), Lionsbridge provided both Clyde and Brian Wesson to manage the Otso Gold
Mine. In light of Lionsbridge's abrupt termination today of
the Services Agreement, the Board of Directors is taking immediate
steps to ensure that all senior leadership roles and
responsibilities are transitioned to A&M in the short term. In
this regard, the Board of Directors has also initiated an immediate
review of management practices and operations, including for
compliance with the Company's internal policies and ethical
standards. This review is underway, and while the results cannot be
pre-judged, the Company reiterates its commitment to good corporate
governance. The Company will update the market on the results of
this review, including with respect to any further significant
operational matters.
In addition, the Company also announces the resignation of Mr.
Martin Smith for personal reasons
and that it has appointed a new independent director to replace Mr.
Smith's vacancy, Mr. Christopher
Mallon, to the board of directors. Mr Mallon, a lawyer
by training, is a founding partner of Fulcrum Partners which
provides advice to stressed and distressed companies. Mr Mallon has
also had extensive experience as a practicing lawyer in all forms
of corporate restructurings including being a partner of Skadden
Arps, Slate, Meagher & Flow (UK) LLP from November 2007 to December
2018; a partner at Weil Gotshal & Manges from
October 2001 to November 2007; a senior manager at
Freshfields Bruckhaus Deringer from January
1999 to October 2001; and
prior thereto, a partner or assistant solicitor with other notable
law firms. Mr Mallon holds a BA, B Juris and LLB. He was
admitted as a barrister and solicitor of the Supreme Court of
Western Australia in 1982 and was
admitted as a solicitor in England
in 1987. As a result of the above described resignations, the
Company now has four directors.
Forward-looking Statements
This press release contains forward-looking statements regarding
the Company based on current expectations and assumptions of
management, which involve known and unknown risks and uncertainties
associated with our business and the economic environment in which
the business operates. All such statements are forward-looking
statements under applicable Canadian securities legislation, and
any other applicable law or regulation of any other jurisdiction.
Any statements contained herein that are not statements of
historical facts, including statements regarding our future results
of operations or financial condition, business strategy and plans
and objectives for future operations, may be deemed to be
forward-looking statements. Specific forward-looking statements in
this press release include, but are not limited to: statements with
respect to operations at the Otso Gold Mine; statements with
respect to the Company's efforts to source a refinancing of
outstanding indebtedness, what the terms or timing of such a
refinancing or similar transaction might be, and that certain of
the Company's secured creditors will have the right to demand
immediate repayment of all outstanding indebtedness and to initiate
steps to enforce their rights; statements that the Company will
provide updates when further disclosure is required or otherwise
appropriate; and statements regarding the future composition of the
board of directors. By their nature, forward-looking statements
require us to make assumptions and are subject to inherent risks
and uncertainties. You should not rely on forward-looking
statements as predictions of future events. We caution our
readers of this press release not to place undue reliance on our
forward-looking statements as a number of factors could cause
actual results or conditions to differ materially from current
expectations. The results, events and circumstances reflected in
the forward-looking statements may not be achieved or occur, and
actual results, events or circumstances could differ materially
from those described in the forward-looking statements.
Please refer to the risks set forth in the Company's continuous
disclosure documents that can be found on SEDAR (www.sedar.com)
under the Company's issuer profile. New risks and uncertainties
emerge from time to time, and it is not possible for us to predict
all risks and uncertainties that could have an impact on the
forward-looking statements contained in this press release. The
Company does not intend, and disclaims any obligation, except as
required by law, to update or revise any forward-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 the Town of
Raahe in Finland. The Otso Gold
Mine is developed, fully permitted, has all infrastructure in
place, two open pits and is currently in the ramp-up towards
commercial production at name plate capacity of 2 million tonnes
per annum.
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.
SOURCE Otso Gold Corp.
