Otso Gold Corp (TSXV:OTSO) announced that it has executed a mining contract with E Hartikainen Oy for the provision of all mining services at the Otso gold mine in Central Finland for a term of three years. E Hartikainen Oy is one of the largest mining and construction contractors in Finland, and the deal marks the home stretch for Otso’s plans to move into production for 2021.
The agreement stipulates that machinery for mining is already on the way to the site in anticipation of the start of mining operations in September.
Brian Wesson stated, “The company is pleased to have partnered with Hartikainen at the Otso Gold Mine and looks forward to working together. The execution of the mining contract is an important milestone towards the start of production next month.”
Arto Hartikainen, Managing Director of Hartikainen, said: “We are very happy with Otso Gold Mine’s partnership and we are starting preparation work right away. Safety, quality and productivity will play a key role in the development of our services at the Otso Gold Mine.”
Otso Targets 100% Renewable Energy Sources
Otso Gold (TSXV:OTSO) , a Canadian-based company, has its flagship project in Finland called the Otso Gold Mine. The mine is a 2 million tonne per year gold processing facility and largest open cut operation. Otso Gold (TSXV:OTSO) has the benefit of being fully funded and with the new deal with Hartikainen, ready to begin production in 2021. The Otso Gold Mine is not the company’s only asset either, although it is the company’s flagship project. The company also owns other exploratory titles in Finland and 49% of a copper porphyry project in the “golden triangle” in British Columbia, Canada.
Otso is moving ahead with production in a unique and sustainable way, as the company has a clear and focused ESG plan in place for its project. The Otso Gold Mine sources just over 80% of its power from renewables. That is a significant accomplishment for the company and the country. Additionally, the company plans to use 100% renewable energy in the near future at the Otso Gold Mine.
Fully Funded Production
Funding the production at the Otso Gold Mine is some of the capital from the recent private placement from Brunswick Gold Ltd. The deal allowed Otso to receive US$11.115 million from the exercise of 284,944,440 common share purchase warrants. The proceeds from the exercise of those warrants will enable Otso to return to production of the Otso Gold Mine in Q3 2021 with the help of the new deal with Hartikainen.
Otso Gold expects to publish an updated NI 43-1010 Technical Report shortly, and this will provide some guidance on the company’s plans for the resumed production expected to begin next month.