2016 was a stellar year for Otis Gold Corp.
We are pleased to outline below this year's news and accomplishments. Activity and interest in the junior gold exploration and development sector increased significantly during the year, driven by a rising gold price between January and July. This stronger gold value combined with extremely encouraging results from our 2015 drill program, positioned us well to advance our flagship asset, the Kilgore Gold Project. In this process, we realized a number of significant milestones.
Development Work at Kilgore
In July, Otis commenced a 5,550-metre, 20-hole drill program targeting gold mineralization in the Aspen Formation (the sedimentary unit underlying the main known lithic tuff host rock at Kilgore). In September, we announced results from the first six holes that intersected mineralized zones ranging from 55-metres to 120-metres (m) thick and grading from 0.82 to 1.55 grams per tonne gold (g/t Au). As a result, the drill program was increased to 9,000 metres over 36 holes. In fact, during October, we officialized an 116% increased land position at Kilgore via the staking of an additional 230 federal lode mining claims. The new claims increased the land package to 8,720 acres, or 35.3 square kilometers. Come November, we compleated drilling and announced further increase of the program to a 40-hole 10,300 metre program. It is worth noting that Otis maintains a 100% ownership interest in the claims and the project is subject to no underlying royalties.
This year we've raised a total of approximately $3,660,000 via private placements and warrant exercises. In late June, we announced a $500,000 straight equity (eg. no warrant) private placement at a price of $0.17 per share. Heavy demand subsequently increased this to approximately $2,300,000. Then, in early December, we were able to announce a second private placement of $500,000 priced at $0.27 per share (again with no dilutive warrants - closing pending). Both these financings were well above market price, confirming ongoing shareholder support of our rapidly developing Kilgore Gold Project. Additionally, we raised approximately $860,000 through the exercise of warrants in October at a price of $0.15.
In February, Dr. Tim Miller joined our Board of Directors. Dr. Miller has recently retired from a long career in the financial services and other industries. From the stat, Miller held successively senior roles in companies such as Glaxo Wellcome plc, Wang UK Limited, Standard Life Assurance Company and, most recently, Standard Chartered Bank plc. We were very pleased to bring Dr. Miller’s broad range of experience to our Board, particularly in the areas of corporate governance and risk management. Additionally, Mr. Eric Klepfer, a member of Otis’ Advisory Board, agreed to take on a much more active role in the Company and has been leading our permitting efforts.
For further details and Otis' plans going forward, please read the full press release.