VANCOUVER, BRITISH COLUMBIA--(Marketwired - Aug. 2, 2016) - Otis Gold Corp. ("Otis" or "the Company") (TSX VENTURE:OOO)(OTC PINK:OGLDF) is pleased to announce that it has closed its previously announced non-brokered private placement (see News Releases dated June 30, 2016 and July 13, 2016). In connection with this private placement, 13,522,709 common shares at a price of $0.17 per share will be issued for gross proceeds of $2,298,860. No warrants were issued in connection with this financing. Cash finder's fees of $23,460 have been paid in connection with the transaction. All funds are in Canadian dollars. All securities issued pursuant to the private placement will be subject to a statutory four month hold period under applicable securities laws. The net proceeds from this private placement will be used for the continued advancement of the Kilgore Gold Project and for general working capital purposes.
One subscriber to the private placement will become a greater than 10% shareholder (a de facto Insider of the Company) and this will trigger a collateral statutory early warning disclosure requirement and announcement will be made by or on behalf of the affected subscriber as required.
The Company also advises that up to 2,000,000 stock options having an exercise price of $.18 per common share have been granted to various directors, officers and consultants of the Company. The options have been granted in accordance with the terms of the Company's 10% rolling Stock Option Plan and the Policies of the TSX Venture Exchange.
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 & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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 "US Securities Act") or any State securities laws, and may not be offered or sold within the United States or to US Persons unless registered under the US Securities Act and applicable State securities laws, or an exemption from such registration is available.