PRECIOUS METALS

Investors favour Otso on first gold pour

Shares in Otso Gold jumped 25% yesterday as the company announced the restart of production and first gold pour at its namesake mine in Finland.

Staff reporter
 Otso Gold’s first gold pour after restarting its Otso mine in Finland

Otso Gold’s first gold pour after restarting its Otso mine in Finland

CEO Brian Wesson said it was a major milestone for the rejuvenated company, which is yet to deliver a feasibility study for Otso.

The mine, previously known as Laiva, has had a stop-start history and last operated in 2019. 

"We look forward to continuing towards long term, sustainable commercial production over the following weeks," Wesson said.

Otso announced an updated resource in August prepared by the John T Boyd Company comprising a measured and indicated 527,200 ounces and an inferred 276,000oz.

It said at the time Boyd was preparing mine designs and a production plan which would form part of a feasibility study to follow.

Otso said yesterday it was currently processing about 4,000 tonnes of ore a day, blasting ore in mining areas four times a week, and ramping up towards nameplate capacity of 6,000t.

It expected to sell the first gold dore from site "over the next weeks".

The company raised US$5 million at 6c per unit last month in a placement to majority shareholder Brunswick Gold to fund the ramp up and for working capital.

Cyprus-based Brunswick had earlier invested $11 million at 5c per unit to fund the restart, giving it a 46% stake.

Lionsbridge Nominees and Pandion Mine Finance are Otso's other major shareholders with 13.4% and 12.8% respectively.

Otso shares (TSXV: OTSO) have spanned C3.5-10c over the past year and gained 25% to close at 7.5c yesterday, valuing it at $75.7 million (US$61 million).

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

A growing series of reports, each focused on a key discussion point for the farming sector, brought to you by the Kondinin team.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

Mining Journal Intelligence Investor Sentiment Report 2024

Survey revealing the plans, priorities, and preferences of 120+ mining investors and their expectations for the sector in 2024.

editions

Mining Journal Intelligence Mining Equities Report 2023

Access an exclusive, inside look on the quarterly mining IPOs and secondary raisings data and mining equities performance tables with an annual Stock Exchange Comparisons supplement.

editions

Mining Journal Intelligence World Risk Report 2023 (feat. MineHutte ratings)

A detailed analysis of mining investment risks across 121 jurisdictions globally, built on 11 ‘hard risk’ metrics and an industrywide survey.