Trading Symbol: TSX-V: OTSO
TORONTO, Dec. 8, 2021 /CNW/ - Otso Gold Corp.
("Otso" or the "Company"), (TSXV: OTSO) has been
informed by government authorities in Finland that Brian
Wesson ("Mr Wesson"), formerly the CEO and a Director of
Otso and currently the Managing Director of Lionsbridge Capital
Pty., has been detained and is under investigation by law
enforcement authorities in that country. Mr. Wesson and
Lionsbridge until recently were retained by the Company to manage
the Otso Gold Mine.
Mr Wesson resigned without prior notice from the Board of
Directors of Otso, and from his position as CEO of Otso, on the
morning of 30 November 2021, after
representatives of the Board of Directors of the Company together
with Alvarez & Marsal (currently providing Chief
Restructuring Officer and Chief Financial Officer services to the
Company) informed him that they were on their way to the mine site.
Clyde Wesson, formerly a Vice
President and a Director of Otso, also resigned at this time.
Following the resignation notice,
Alvarez & Marsal in its Chief Restructuring
Officer and Chief Financial Officer capacities, has acted
immediately to ascertain the whereabouts of certain computer
devices, files and property owned by Otso that appears to have been
taken from the Company at the same time as the resignations, and is
investigating certain issues and discrepancies relating to the
Company's financial transactions and records.
The Company has acted swiftly to inform law enforcement of these
matters, and understands that Mr Wesson was apprehended on
30 November 2021 and that he remains
in pre-trial custody under criminal suspicion of aggravated
embezzlement and payment fraud.
Under Finnish law, all pre-investigation material and
information is confidential and the precise details of the charges
Mr Wesson is facing have not been disclosed publicly.
A spokesperson for the Company said:
"The criminal suspicions facing Mr Wesson are extremely serious.
We are grateful to the Finnish authorities for the speed of their
response and we will continue to assist law enforcement in their
investigation. The Board of Directors of the Company has undertaken
to investigate, and will continue to investigate, former
management's practices and operations, including for compliance
with the Company's internal policies, legal and ethical
standards.
At this time, owing to the abrupt departure of Mr Wesson, The
Company has been left without control of bank accounts, email and
document servers. Once control has been reinstated, the Company
will resume the publication of press releases on its website. The
Company intends to act regarding these matters in the best
interests of the Company, and in cooperation with the legal
proceedings in Finland and
elsewhere."
Forward-looking Statements
This press release contains forward-looking statements regarding
the Company based on current expectations and assumptions of
management, which involve known and unknown risks and uncertainties
associated with our business and the economic environment in which
the business operates. All such statements are forward-looking
statements under applicable Canadian securities legislation, and
any other applicable law or regulation of any other jurisdiction.
Any statements contained herein that are not statements of
historical facts, including statements regarding our future results
of operations or financial condition, business strategy and plans
and objectives for future operations, may be deemed to be
forward-looking statements. Specific forward-looking statements in
this press release include, but are not limited to: statements with
respect to: (i) the outcome of the CCAA proceedings and/or any
related restructuring proceedings and the timing of any such
proceedings, (ii) the ability of the Corporation to secure
additional financing as part of the CCAA process or otherwise, and
(iii) the halt of trading of the common shares and review of the
TSXV regarding the suitability of the Corporation for listing on
the TSXV and any outcome of such review. By their nature,
forward-looking statements require us to make assumptions and are
subject to inherent risks and uncertainties. You should not rely on
forward-looking statements as predictions of future events.
We caution our readers of this press release not to place undue
reliance on our forward-looking statements as a number of factors
could cause actual results or conditions to differ materially from
current expectations. The results, events and circumstances
reflected in the forward-looking statements may not be achieved or
occur, and actual results, events or circumstances could differ
materially from those described in the forward-looking
statements. Please refer to the risks set forth in the
Company's continuous disclosure documents that can be found on
SEDAR (www.sedar.com) under the Company's issuer profile. New risks
and uncertainties emerge from time to time, and it is not possible
for us to predict all risks and uncertainties that could have an
impact on the forward-looking statements contained in this press
release. In addition, there is no assurance that there will be any
residual value for shareholders under the CCAA process, nor can be
no assurance that the CCAA proceedings will result in the
maximization of the return in respect of the Corporation's assets
and those of its subsidiaries. The Company does not intend, and
disclaims any obligation, except as required by law, to update or
revise any forward-looking statements whether as a result of new
information, future events or otherwise.
About the Company
Otso Gold Corp. wholly owns the Otso Gold Mine near the Town of
Raahe in Finland. The Otso Gold
Mine is developed, fully permitted, has all infrastructure in
place, two open pits and is currently in the ramp-up towards
commercial production at name plate capacity of 2 million tonnes
per annum.
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.
SOURCE Otso Gold Corp.
