Otso Gold Corp. V.OTSO

Otso Gold article - Raahen Seutu 10.12.2021

[KultaKaivos]

There is a new article in the online version of the local newspaper "Raahen Seutu", published today; 10.11.2021 and written by reporter “Timo Myllykoski”. Here is a semi-proofread translation:
Headline:
Otso Gold left a lot to be cleaned-up - "It is obvious that in recent months they have not submitted financial reports to the board"
Sub-Headline:
The former CEO of the mining company, suspected of serious financial crimes, was apprehended at Helsinki-Vantaa Airport. Otso Gold still owes more than six million euros to the previous main contractor.
Article:
The more information that comes out, the more the events at Otso Gold, owned by the Raahe gold mine, are reminiscent of a thriller script. Documents from the Supreme Court of British Columbia reveal the suspicions of the guilt of Brian Wesson, an Australian detained in Finland, for serious financial crimes. Wesson, who was imprisoned by the Oulu District Court last Friday (3.12.2021), was arrested at Helsinki-Vantaa Airport on 30 November. According to Otso Gold's press release, he had previously resigned the same day without prior notice from the company's Board of Directors and CEO after learning that representatives of the company's Board of Directors and the Alvarez & Marsal consulting company were on their way to Raahe and the mine. The members of the Board also tried to reach Clyde Wesson, who resigned from Otso Gold's Board of Directors and Deputy CEO on the same day, but were unable to contact him. The younger Wesson is currently believed to be in Australia. According to Otso Gold's application for reorganization proceedings filed with the court in Canada, the company's credit card used by Brian Wesson has accrued unpaid payments of C $ 190,000. Clyde Wesson has unresolved credit card payments of $ 493,704. According to Otso Gold's board, despite repeated requests, the Wessos did not submit any explanations or receipts for credit card expenses. The company's current Board of Directors states that it has not been aware of or received an explanation for the significant increase in Otso Gold's trade payables in recent months. In July, trade payable was about two million euros, but in November it was already about nine million euros. Trade payables are assumed to be related to the acquisition of goods and services for the Raahe Gold Mine. Otso Gold's current board says it is also investigating the fate of the missing $ 741,000. According to the Board of Directors, the company has sold gold with this transaction amount to MKS, which trades in precious metals, but the payment made by the Swiss company by bank transfer has not reached Otso Gold. Otso Gold's current board, chaired by Vladimir Lelekov of Russia, finds it clear that the Wessons have not disclosed to the board in recent months any material financial matters related to the company. The Wessons were employed by Otso Gold and managed the Raahe gold mine through their own Lionsbridge Capital company. Otso Gold issued a press release on Wednesday evening thanking the Finnish authorities for their prompt response. The company considers the suspicions against Brian Wesson to be very serious. As a result of Wesson's sudden departure, Otso Gold says it has lost control of bank accounts, e-mail and document servers. Otso Gold describes its current financial situation as very challenging for the company and its continued operations. Despite the imminent insolvency, the company believes that its business is recoverable and competitive and profitable in the long run. Otso Gold reveals the main reasons for its financial difficulties in its corporate restructuring application submitted to the Oulu District Court last Friday. In the company's view, the deterioration in the financial situation is temporary and is mainly due to the challenges that have now emerged in the company's administration and the financing of the entire Otso Group. Otso Gold's largest creditor is the mining finance company Pandion Mine Finance through its subsidiary PFL Raahe Holdings LP. It has lent a total of $ 32.6 million to the mining company in 2017-2020. This week, Tuesday, Pandion’s loan matured with $ 23 million in interest, or about $ 25.9 million. On the same day, Otso Gold also owed about $ 6.1 million to Tallqvist Infra Oy Ab in Kokkola. It was at Tallqvist's request that the company that owned the Laivakangas gold mine was declared bankrupt in June 2019. At that time, the mining company was still operating under the name Nordic Gold Oy. The mining company had a dispute with Tallqvist, the main contractor at the gold mine, regarding the main contractor's receivables from the company. However, the bankruptcy was cancelled a week and a half later after the parties reached an amicable settlement. Today, Otso Gold’s largest shareholder with a 67 percent stake is Brunswick Gold, registered in Cyprus. It invested $ 11 million in the mining company this year. According to its board, the Otso Gold Group now needs significant additional funding to stabilize its operations. Large in owner Brunswick is considering recapitalizing the group but needs time to do so.
Fact:
The company has a new management
• A new Board of Directors was appointed for Otso Gold as of November 30, 2021, with Vladimir Lelekov as Chairman and Nicolas Pascault and Dan Andersson as full members.
• Lelekov is the Chairman of the Board of Brunswick Rail in Russia and Pascault is the CEO of the same company. Andersson is currently the interim CEO of Otso Gold.
• Trading in Otso Gold Corporation shares on the Toronto Stock Exchange will be suspended for the time being.

[5ilverlining808]

I can only imagine that a extradition request might be made to the Australian Govt. for Clyde to face the music along side his dad. All bank accounts should be frozen before it goes into the off shore acounts. I remember I said the father was good in gold process situations and I also said he was a inexperienced manager in large projects. How cold is it now in a Finish prison, and do they have