|By Marketwired .||
|July 14, 2014 09:23 AM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 07/14/14 -- Otis Gold Corp. ("Otis") (TSX VENTURE:OOO)(OTCQX:OGLDF) is pleased to announce that it has signed a Letter of Intent (the "Agreement") to joint venture its Blue Hill Creek Project ("Blue Hill Creek") with Radius Gold Inc. ("Radius"). Blue Hill Creek, which is a single target located within Otis' larger Oakley Gold Project located in Cassia County, Idaho, is a high-potential, classic epithermal hot spring-type gold play. The Blue Hill Creek Project consists of 36 federal lode mining claims and one 80 acre Idaho State lease all totaling 800 acres.
The Agreement allows Radius to earn a 70% interest in Blue Hill Creek in exchange for a total of $525,000 in cash and a cumulative total of $5,000,000 in exploration expenditures over four years as follows:
a. A cash payment of US$30,000 on execution of the Agreement; b. US$500,000 in exploration expenditures on the Property in the first year and a cash payment of US$50,000 on the first-anniversary date, c. An additional $1,000,000 in exploration expenditures on the Property in the second year and a cash payment of US$100,000 on the second- anniversary date, d. An additional US$1,500,000 in exploration expenditures on the Property in the third year and a cash payment of US$100,000 on the third- anniversary date, and e. A final US$2,000,000 in exploration expenditures on the Property in the fourth year and a final cash payment of US$245,000.
All expenditures are cumulative, and there are no partial earn-ins.
States Otis President & CEO Craig Lindsay: "We are very excited to have Radius as a partner to assist us in moving the Blue Hill Creek Project forward. Radius has the capital and technical resources to begin an exploration initiative that will include a planned first year drill program. In addition to the joint venture at Blue Hill Creek, Otis is seeking other partners to explore the additional targets at its approximately 2,400 acre Oakley Gold Project, including the Cold Creek target and other emerging areas within its existing claim block."
Otis has an existing 80% interest in Oakley, which is being increased to 100% through a separate transaction with its joint venture partners consisting of staged payments of US$60,000 over a two-year period.
About Otis Gold
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
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.
The forward-looking information contained in this press release is made as of the date hereof and Otis undertakes no obligation to update publicly or revise any forward-looking information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.
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 "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
Otis Gold Corp.