VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb. 28, 2017) - Otis Gold Corp. ("Otis" or the "Company") (TSX VENTURE:OOO)(OTC PINK:OGLDF) is pleased to announce that it has closed the private placement previously announced on February 24, 2017 whereby Agnico Eagle Mines Limited ("Agnico") has acquired by way of a private placement 14,420,000 common shares ("Common Shares") of Otis at a price of $0.35 per Common Share for proceeds of $5,047,000 (the "Transaction"). As a result of this Transaction, Agnico now owns approximately 9.95% of the issued and outstanding Common Shares on a non-diluted basis. The proceeds from the Transaction shall be primarily used for exploration at Otis' Kilgore Gold Project located in Clark County, Idaho and for working capital and general corporate purposes.
Additionally, Agnico and Otis have entered into an investor rights agreement (the "Investor Rights Agreement") pursuant to which Agnico has the right to participate in certain equity financings by Otis in order to maintain its interest of up to 9.95% in Otis. All of the securities issued under this Transaction are subject to a hold period of four months and one day from the closing date of the Transaction in accordance with applicable Canadian securities laws. No commission or Finder's Fees were paid on this Transaction.
About the Kilgore Gold Project
The Kilgore Gold Project contains a current NI 43-101 (dated September 12, 2012) Indicated Resource of 520,000 ounces (oz) Au in 27.4 million tonnes at a grade of 0.59 g/t Au and an Inferred Resource of 300,000 oz Au in 20.2 million tonnes at a grade of 0.46 g/t Au (the "Kilgore Deposit"). The Kilgore Deposit is part of an extensive low-sulfidation quartz-adularia epithermal gold system hosted in Tertiary volcanic rocks and Aspen Formation calcareous siltstone, shale, and sandstone of Late Cretaceous age. Gold mineralization is of the disseminated, bulk-tonnage type similar to that comprising the classic volcanic-hosted gold deposits at Round Mountain, Nevada.
The Qualified Person under National Instrument (NI 43-101) Standards of Disclosure for Mineral Projects for this News Release is Paul D. Gray, P. Geo, who has reviewed and approved its technical content.
About the Company
Otis is a resource company focused on the acquisition, exploration, and development of precious metal deposits in Idaho, USA. Otis is currently developing its flagship property, the Kilgore Gold Project, located in Clark County, Idaho.
ON BEHALF OF THE BOARD
Craig T. Lindsay, President and CEO
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The forward-looking information contained in this press release is made as of the date hereof, and Otis undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to sell any securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.