Mr. Craig Lindsay reports
OTIS GOLD ARRANGES PRIVATE PLACEMENT
Otis Gold Corp. has arranged a non-brokered private placement financing of up to 10 million units at a price of 10 cents per unit for aggregate gross proceeds of up to $1-million. Each unit will consist of one common share and one-half of a common share purchase warrant. Each whole warrant will entitle the holder to acquire one additional common share of the company at an exercise price of 15 cents per common share for a period of 30 months from the closing date of the financing. Members of the company's board of directors and management team may be participating in this offering.
The proceeds from this financing will be used to initiate drilling at the Kilgore project and for general working capital purposes. Finders' fees may be paid on a portion of the funds raised. All securities issued will be subject to a hold period of four months and one day from closing. The proposed financing is subject to the approval of the TSX Venture Exchange.
About the Kilgore project
The Kilgore project lies on the northeastern margin of the Miocene-Pliocene Kilgore Caldera complex in the Eastern Snake River Plain, Idaho. The Kilgore project contains the Kilgore deposit, with a current National Instrument 43-101 resource, as follows: an indicated resource of 825,000 ounces gold in 44.6 million tonnes at a grade of 0.58 gram per tonne gold; and an inferred resource of 136,000 ounces gold in 9.4 million tonnes at a grade of 0.45 gram per tonne gold. The Kilgore deposit is a low-sulphidation, gold-bearing, quartz-adularia epithermal system hosted in Tertiary volcanic rocks, local Tertiary intrusive rocks and basement Late Cretaceous, Aspen formation sedimentary rocks.
About Otis Gold Corp.
Otis is a resource company that is focused on the acquisition, exploration and development of precious metal deposits in Idaho.
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