SOURCE: Osprey Gold Corporation

June 16, 2005 19:56 ET

Osprey Gold Corp. Releases Excerpts From Nevada Court Order

TORONTO -- (MARKET WIRE) -- June 16, 2005 -- The following is a detailed excerpt from the Nevada court order on June 6, 2005, regarding Osprey Gold Corp. (OTC: OSGL). The entire court order will be filed promptly with the Securities and Exchange Commission.

"On May 26, 2005, a hearing was held before the NASD Board of Governors. As a result of the May 26th hearing, it was determined that Osprey's stock was not eligible for quotation on the OTC Bulletin Board. The delisting was caused by Plaintiffs' failure to make the necessary SEC filings as expressly required by the Preliminary Injunction, entered February 25, 2005, docket #28 ("Preliminary Injunction"). The delisting was effective with the open of business on June 6, 2005. The Court has provided Plaintiffs an opportunity to protect the interests of Osprey shareholders, which they have failed to do. Plaintiffs have also violated the requirements of the Preliminary Injunction entered upon Plaintiffs' request.

Defendants will suffer irreparable injury if Plaintiffs are allowed to continue in control of Osprey's assets, pursuant to the terms Preliminary Injunction;

The balance of harms favors modifying the Preliminary Injunction;

IT IS HEREBY ORDERED that the Preliminary Injunction, entered herein on February 25, 2005, super ceded by the following Order:

1. Effective as of June 6, 2005, Gordon Leliever, Betty North, Doug Budden, and Boardwalk Creation, Ltd. and their officers, agents, servants, employees, and attorneys and those persons in active concert or participation with those who received actual notice of this order by personal service or otherwise ("Plaintiffs") have no authority to act on behalf of Osprey or to hold themselves out as officers, directors, agents, representatives, or associates of Osprey. All authority and control granted to Plaintiffs by the Preliminary Injunction or by operation of law is immediately revoked and terminated;

2. Plaintiffs are enjoined from taking any action or purporting to take 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 any board of directors or shareholders meetings, filing any papers, forms, or proxy statements with the SEC, soliciting or contacting Osprey shareholders, except as allowed by Nevada law in relation to any shareholders meeting or proxy and excluding parties to this actions and their relatives, disseminating information regarding this lawsuit, issuing Osprey stock, interfering with Osprey's operations, interfering with Osprey's contractual or business relations, interfering with any dealings regarding the Osprey website, and contacting or making representations to Osprey's vendors, suppliers, contractors, consultants, geological engineers, geologists, assay agents, and all of Osprey's employees;

3. Plaintiffs are enjoined from selling or transferring any mining claims in the name of Osprey or Boardwalk Creations, Ltd. or in which Osprey has an ownership interest, equitable interest, claimed interest, or option interest, including the 14 Lingman Lake claims belonging to Osprey but currently in the name of Boardwalk Creation Ltd., and the 4 claims purchased from Cool Minerals Inc. Plaintiffs are further enjoined from selling or transferring any mining claim(s) not specifically referenced above, whether or not in the name of Osprey, except upon a minimum of 10 business days notice of the sale to Defendants. The Notice shall include Plaintiffs' sworn statement describing the ownership of the claim(s), an accounting of the consideration exchanged for said claim(s), and Plaintiffs statement that Osprey has no ownership interest, equitable interest, claimed interest, option interest, or any other claimed interest to the claim(s);

4. Plaintiffs shall immediately relinquish control and possession to Defendants of all Osprey's assets, financial documents, ledgers, books, minute books, corporate documents, checkbooks, deposit books, bank statements, trust account records, account statements, records, legal papers (to the extent not privileged), assay reports, core logs, core samples, geological samples, geological reports, equipment, vehicles, computers, the Osprey Gold mining camp, located at 303 Sultan Road, Gogama, Ontario, P0M1W0, the Osprey corporate office, located at 210 Broadway, Orangeville, Ontario, L9W1K3, the Osprey website, www.ospreygold.com, and any other Osprey facilities, whether or not the aforementioned is in the control or possession of Plaintiffs or third parties, including Plaintiffs attorneys, employees, agents, and financial consultants. Plaintiffs shall immediately produce a "privilege log" for any documents or communications referenced above which Plaintiffs allege are privileged;

5. Plaintiffs shall yield prosecution of any action against Lucien Cool or Cool Minerals Inc. to recover the four mining claims belonging to Osprey but currently in the name of Cool Minerals Inc., including executing any necessary documents. Plaintiffs shall immediately produce to Defendants all documents regarding the administrative action against Mr. Cool and Cool Minerals Inc. in connection with the above-mentioned claims;

6. Plaintiffs shall produce an accounting of all funds received by Plaintiffs in the name of or on behalf of Osprey since November 1, 2004, including but not limited to an accounting of the $67,500 loan allegedly received from John Leliever;

7. Only Defendants are entitled to receive mail addressed to or intended for Osprey. Effective immediately all mail addressed to or intended for Osprey shall be delivered only to Defendants. Plaintiffs shall immediately execute a copy of a Mail Agreement acceptable to the Canada Post Corporation, to allow Osprey's mail to be delivered to Defendants."

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