- O2Gold (OTGO) has closed its previously announced acquisition of a gold mining project in Colombia
- The Otu Central Project consists of interests in 26 mining claim titles in the Segovia/Zaragoza regions of Antioquia in Colombia
- Pursuant to an agreement with Bullet Holding Corp., O2Gold acquired all of the shares of Buenaventura Gold, Inc. for US$9 million
- O2Gold has appointed Mr. Robert W. Allen, a nominee of Bullet, to the Board of Directors
- O2Gold is a mineral exploration company with activities in Colombia
- O2Gold Inc. (OTGO) opened trading at C$0.28 per share
O2Gold (OTGO) has closed its previously announced acquisition of a gold mining project in Colombia known as the “Otu Central Project”.
The Otu Central Project consists of interests in 26 mining claim titles and applications in the Segovia/Zaragoza regions of Antioquia in Colombia.
Pursuant to the terms of the share purchase agreement dated October 26, 2020 entered into with Bullet Holding Corp. ( Bullet ) and certain of Bullet’s directly and indirectly owned subsidiaries, O2Gold acquired all of the issued and outstanding shares of Buenaventura Gold, Inc., a Panamanian company for US$9 million, payable in cash and securities of the company.
Bullet will retain a perpetual 2% net smelter return royalty on the entire Otu Central Project, with the exception of production from mining title no. T4638005, which is already affected by a 5% net smelter return royalty payable to a third party.
Bullet is entitled to nominate one individual for election to O2Gold’s board of directors at its annual general meeting held each year and to participate in any of O2Gold’s future private placement financings on a pro-rata basis in order for it to maintain its percentage ownership position, for so long as Bullet holds at least 10% of the issued and outstanding shares.
The assets are located in the Segovia/Zaragoza regions of Antioquia in Colombia and cover approximately 24,255 hectares. O2Gold has acquired the Assets free of debt along with any related infrastructure.
Bullet has agreed to contribute exploration expertise and community relationships developed during several years of grassroots exploration.
O2Gold is not paying any finder’s fees in connection with the acquisition.
Also in connection with the acquisition, O2Gold has appointed Mr. Robert W. Allen, a nominee of Bullet, to the Board of Directors, effective immediately.
Robert W. Allen is the founder and Chairman of Grupo de Bullet, a mineral exploration company active in Colombia since 1984, longer than any international mining company. Allen built and operated Continental Gold and its flagship deposit; Continental sold to Zijin for C$1.4 billion in 2020. Grupo de Bullet has also discovered or contributed to the discovery of nearly every major Colombian deposit of the last two decades. Allen is a native of Arkansas, where he lives. Through Grupo de Bullet, he remains one of the largest mineral rights holders in Colombia.
“We are very excited to welcome Bob to the board. His vision and expertise are an immeasurable asset to O2Gold Inc.,” said the CEO of O2Gold, Jaime Lalinde.
“He has had a tremendous impact on Colombia’s precious metals industry, and, with his help, we expect to continue the great and historic work he and his nephew Robert Neill have done here. Additionally, O2Gold intends to begin to actively pursue the option of acquiring production and processing capacity in the region.”
O2Gold is also pleased to announce that, in addition to the $3,478,000 in gross proceeds raised pursuant to the offering, $625,500 was raised through the exercise of warrants held by certain of its warrant holders.
Due to a clerical error made by a finder, the company also announces that additional finder’s fees were paid pursuant to the offering as follows. An additional C$3,850 in cash was paid and an additional 19,250 non-transferable finder’s warrants were issued to Haywood Securities Inc. Each finder’s warrant entitles the holder to acquire one share at a price of $0.20 at any time prior to April 16, 2023.
All securities issued in connection with the Offering are subject to a statutory hold period of four-months and one day, expiring on August 17, 2021.
O2Gold is a mineral exploration company with activities in Colombia.
O2Gold Inc. (OTGO) opened trading at C$0.28 per share.
