Dodged a Bullet

I wrote about Otso a few months ago. The stock looked undervalued. I dumped my position after the company did a massively diluted deal ahead of going into operation. It didn't make sense with cash flow set to rise and it was at far below market prices. At that time, I was miffed that insiders were getting a far better deal. Instead, I dodged a bullet.

Information Regarding the Detention of Brian Wesson, Former CEO Otso Gold Corp.

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."

Where there is smoke...if a CEO doesn't take care of shareholder money when doing fundraising deals, why should you think he has shareholders interests in mind when he's spending the company's money? This is an exterme case, but many companies out there are run by people who legally use their companies like ATMs.

Under the Radar First Pour

This is a stock I have followed for some time and it is now coming up on production in Q3 2021. With every mining stock there is the caveat of bad management and bad luck wrecking a perfectly profitable mine, but...if they execute on their plan and if new highs beget new highs for gold in the next 3 to 5 years, then I think this stock could very well trade for $1 or more. I have been aggressively buying here.

For traders, the short-term peak will likely come when they announce their first pour.

Other first pour stocks I have bought coming into this year, or during this year, are as follows: