The O.T. Mining Corporation Announces a Recapitalization Including Closing of a $375,000 Investment in the Company
01 March 2014 - 5:50AM
Marketwired
The O.T. Mining Corporation Announces a Recapitalization Including
Closing of a $375,000 Investment in the Company
BASIN, MT--(Marketwired - Feb 28, 2014) - The O.T. Mining
Corporation (OTC Pink: OTMN) ("OTMN" or the "Company") is
pleased to announce it has closed on a recapitalization of OTMN's
balance sheet which also includes an initial investment of $375,000
of fresh capital into the Company. As part of the
recapitalization, the Company converted a substantial amount of
corporate indebtedness into common shares of OTMN which effectively
eliminated most of the outstanding debt of the
Company. Another important aspect of the recapitalization plan
was the conversion of nearly the entire debt owed to executives of
the Company. The investor group, consisting of several
accredited individual investors (the "Investors"), has received
4,687,500 common shares of OTMN priced at $0.08 per share,
10,000,000 options to purchase additional shares of OTMN priced at
$0.10 per share, and 4,687,500 warrants to purchase shares of OTMN
at a price of $0.16 per share. If all options and warrants in
this initial $375,000 investment are exercised, this will infuse
$1,750,000 of additional capital into OTMN. Under the terms of
the investment, the Investors may invest up to an additional
$375,000 on the same terms, for a total of $750,000.
Rosemary L. Christensen, OTMN's President and Chief Executive
Officer, commented on the recapitalization. "This transaction
was critical for the future of our Company and its shareholders,"
says Christensen. "OTMN has suffered along with the entire
metals exploration sector the past several years, and was unable to
investigate and maximize the value of the Company's assets for the
shareholders. In a single transaction, we have accomplished
several important financial and strategic objectives: (1)
eliminated almost all outstanding indebtedness of the Company; (2)
injected sufficient working capital into the Company to sustain
future corporate operations for 18 months or more; (3) began
discussions with a leading mining engineering consultant who will
assist and advise OTMN in investigating mineral development
activities; and (4) engaged an investment banking advisor /
broker-dealer, IIP Securities LLP, who will advise the Company in
seeking strategic and financial alternatives, including but not
limited to additional financings, potential development joint
ventures with larger mining companies, and monetization of select
Company assets."
Christensen commented further on OTMN's immediate
plans. "With this financial cushion, OTMN Management and the
Board of Directors will now work closely with our mining advisor
and investment banker to develop a strategic and financial plan for
the Company designed to discover, measure and indicate the
copper-gold-silver-molybdenum mineral resource within OTMN's rights
to the Ruby Property and surrounding property."
About The O.T. Mining Corporation -- OTMN holds the rights,
including acres of fee simple land, 13 patented mining claims and
291 unpatented mining claims, to the famed and previously producing
Ruby Property and nearby Basin Mill in Jefferson County,
southwestern Montana. The property contains three high
priority exploration targets. Exploration work completed to
date by OTMN includes airborne and ground geophysics, Mobile Metal
Ion geochemistry, limited drilling, geologic mapping and surface
sampling. OTMN's North Area porphyry system is in the same
geologic structure as, and is geochemically and geophysically
similar to, the porphyry system at Butte, Montana, which is the
fourth largest porphyry system in the world and was once known as
"The Richest Hill on Earth." The Company's mineral property
and assets have been described in a report prepared in conformity
with Canadian National Instrument 43-101 ("NI 43-101") Standards of
Disclosure for Mineral Projects.
Disclaimer: This press release contains certain "Forward-Looking
Statements." All statements, other than statements of
historical fact, included herein are forward-looking statements
that involve various risks and uncertainties. There can be no
assurance that such statements will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements.
For further information contact: Rosemary L. Christensen
President Tel: (514) 935-2445 Fax: (514) 935-8161 E-mail:
rchristensen@otmining.com Web site: www.otmining.com
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