MEGUMAGOLD AND OSPREY GOLD TO COMBINE, CREATING A LEADING PRECIOUS METALS EXPLORATION COMPANY IN NOVA SCOTIA

HALIFAX, Nova Scotia and VANCOUVER, British Columbia, March 23, 2020 (GLOBE NEWSWIRE) -- MegumaGold Corp. (CSE: NSAU, OTC: NSAUF, FWB: 2CM2) (“MegumaGold”) and Osprey Gold Development Ltd. (TSXV: OS) (“Osprey”) are pleased to announce that they have entered into a letter agreement (the “Agreement”) pursuant to which MegumaGold would acquire 100% of the issued and outstanding shares of Osprey via a business combination (the “Transaction”).

The proposed Transaction would provide shareholders of both companies with:

• a natural district consolidation of Osprey’s properties including the Goldenville and Caribou projects, and MegumaGold’s extensive exploration land position;
• continued and increased exposure to Nova Scotia’s Meguma terrane;
• strengthened balance sheet;
• opportunities for operational and exploration synergies; and
• significantly strengthened management and leadership team through complimentary skillsets.

Osprey is a Canadian exploration company focused on exploring five gold properties in Nova Scotia’s largest historic gold district. Osprey’s exploration licences all sit contiguous with MegumaGold claims in the heart of the Meguma gold district.  Osprey’s main focus is developing the Goldenville Project, located in Nova Scotia’s largest historic gold district within the Meguma Supergroup. Osprey is also focused on exploring four other gold projects within the Meguma Supergroup including the Caribou Project, located within one of Nova Scotia’s past-producing gold districts.

MegumaGold and Osprey have both centered their exploration focus on the developing Meguma Formation of Nova Scotia. MegumaGold has assembled a strategically positioned, district-scale claim tenure position comprised of 107,114 hectares within the Meguma Gold District. MegumaGold’s current focus is preparing drilling campaigns for its Killag and Touquoy West Properties while continuing to develop its regional targets throughout the district. At Touquoy West, located 4 km to the west of St Barbara’s Touquoy mine, combined soil geochemistry results and Induced Polarization (IP) survey results have identified three main anomalies on strike with the Touquoy mine that have never been drill tested. At Killag, MegumaGold’s initial Reverse Circulation (RC) drilling program has identified anomalous gold results over a strike length of 1 km open to the east and west, approximately 20 km to the east of St Barbara’s Touquoy mine. MegumaGold currently holds 7,176 hectares of exploration licences adjacent to Osprey’s Goldenville Project. Osprey’s Mitchell Lake Zone, located approximately 3.5 km west of the Goldenville deposit, has been identified by Osprey as a high priority area for additional exploration work and follow-up drilling due to the lack of historical drilling in this area that leaves large areas of untested potential.