SOURCE: Osprey Gold Corporation

June 16, 2005 17:55 ET

Control of the Osprey Gold Corp. Ordered by District Court of Nevada

TORONTO -- (MARKET WIRE) -- June 16, 2005 -- Linda Kent, Corporate Secretary and Director of Osprey Gold Corp. (the "Company" or "Osprey") (OTC: OSGL) is pleased to announce that at a District Court Hearing held in Las Vegas, Nevada, on June 6, 2005, and effective on that date, the Court has ordered that the Plaintiffs, Gordon Leliever, Betty North, Douglas Budden, Boardwalk Creation Ltd, et al, who initiated a lawsuit against Georges Benarroch, Linda Kent, Credifinance Securities Ltd. and others., relinquish to Georges Benarroch, Linda Kent, Credifinance Securities Ltd. et al., the Defendants, exclusive control of the Company and all of its assets forthwith.

Gordon Leliever, Betty North et al. have been enjoined from, amongst other orders which will be disclosed in the Court Order, taking any action whatsoever on behalf of Osprey or making representations on behalf of Osprey, including, but not limited to: making press releases or other statements, conducting Board of Directors or Shareholders meetings, and filing any papers, forms or proxy statements with the SEC. Furthermore, Gordon Leliever, Betty North et al. have no authority to act on behalf of Osprey or to hold themselves out as officers, directors, agents, representatives, or associates of Osprey due to failure to comply with the Preliminary Injunction issued on February 25, 2005. In particular, failure to protect the assets of the Company, as well as failure to prepare, revise and file financial statements and necessary SEC filings in a timely fashion, which eventually prompted the NASD to delist the Company from the OTC Bulletin Board on June 6, 2005. The NASD stated that Osprey was delinquent in their Form 10Q quarterly filings for the periods ending September 30, 2003, June 30, 2003, and September 30, 2004, as well as the Form 10K annual filings for the periods ending December 31, 2003, and December 31, 2004. The shares of Osprey are now listed on the OTC Pink Sheets under the symbol OSGL.PK. All authority and control granted to the Plaintiffs by the Preliminary Injunction have been revoked and terminated.

"As soon as Gordon Leliever, Betty North et al. provide the lawful management of Osprey with all of the documents, and access to the assets needed in order to operate the Company, we shall proceed with the audit matters and complete a thorough review, performed by recognized professionals, of the mining properties of Osprey," said Linda Kent, who continued, "...it will be a difficult task, as we believe the Company has no funds available and cannot issue shares until the trial is over, however we feel committed to the shareholders and will do our best to recover any assets, if missing, reduce corporate expenses and publish the adequate disclosures, which will be our main focus." The Plaintiffs will be required to produce an inventory of all assets, facilities, equipment, vehicles and documents turned over to the Defendants as well as an accounting of all funds received by Osprey since November 1, 2004. The Plaintiffs are also enjoined from selling or transferring any mining claims in the name of Osprey or Boardwalk Creation Ltd., or in which Osprey has an interest, including 14 Lingman Lake claims belonging to Osprey, but currently in the name of Boardwalk Creation Ltd. and 4 claims purchased from Cool Minerals Inc.

A copy of the Court Order issued by the District Court of Nevada will be filed promptly with the Securities and Exchange Commission.

This press release includes statements which may constitute "forward-looking statements." These statements are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Investors are cautioned that such forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. These factors include, without limitation, future trends in mining prices, the availability of capital for development in the mining sector, competitive factors and other risks detailed in the Company's periodic filings with the Securities and Exchange Commission.

Contact Information

  • Contact:
    Linda Kent
    Corporate Secretary and Treasurer
    Osprey Gold Corp.
    (416) 955-1588