Otis Gold Closes $4.0 million Private Placement
February 23, 2011
Vancouver, B.C. – Otis Gold Corp. (“ Otis” or “ the Company” ) wishes to announce it has closed its non-brokered private placement and has issued 5,780,557 units at a price of $0.70 per unit, for aggregate gross proceeds of $4,046,390. Each unit will consist of one common share and one-half of one share purchase warrant (each whole share purchase warrant being a "Warrant"). Each Warrant will be exercisable to purchase one additional common share of the Company for 18 months from closing, at a price of $1.10 per share. The net proceeds from this private placement will be used for general working capital purposes. Finder’s fees of $209,985 have been paid in cash and 131,186 finders warrants have been issued to qualified parties. All securities issued have a hold period expiring June 25, 2011.
Additionally, Otis announces that 800,000 stock options having an exercise price of $0.70 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 approved on November 21, 2008 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 and CEO