SOURCE: Osprey Gold Corporation

August 22, 2006 09:00 ET

Osprey Retains All Mining Assets

TORONTO -- (MARKET WIRE) -- August 22, 2006 -- Osprey Gold Corp. (PINKSHEETS: OSGL) announced that, further to the dismissal of the lawsuit by the United District Court, District of Nevada on July 26th, 2006 pursuant the Settlement Agreement and Mutual Release between the parties executed on July 17th, 2006, the Benarroch Group has retained all the assets of the Company.

Furthermore, as per the Settlement Agreement:

The Company cancelled and returned to Treasury 61,050,000 million common shares previously belonging to the Leliever Group.

The Leliever Group, upon defaulting on the payment of US $1,500,000 to the Benarroch Group and defaulting on the payment of approximately US $242,000 to a number of unsecured creditors of Osprey, has made Osprey the sole beneficial owner of the following properties:

1)      Jerome 63 patented and 119 un-patented claims
2)      Lingman Lake
                14 patented claims known as the Kennecott Claims
                5 un-patented claims
3)      Camp situated near Gogama
The Leliever Group delivered to the Benarroch Group a copy of a letter sent by Leliever Group attorneys withdrawing their complaint against Credifinance Securities Limited with the Investment Dealer Association of Canada.

Linda Kent, Corporate Secretary & Treasurer of Osprey, indicated that, "This is the best possible outcome for Osprey shareholders as the Company can now move on and continue, with the help of reliable professionals, the exploration and development of its properties."

Osprey Gold Corp. acquired advanced exploration-stage properties with near-term production potential and future growth through exploration discoveries. Its acquisition and development emphasis is focused on properties containing gold and other strategic minerals located in Canada. Osprey holds interests in exploration properties located in the province of Ontario.

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 Treasurer
    (416) 884-8807