MEGUMAGOLD AND OSPREY GOLD TO COMBINE, CREATING A LEADING PRECIOUS METALS EXPLORATION COMPANY IN NOVA SCOTIA - Seite 2

Management of both companies believe that the combination of Osprey’s Goldenville and Caribou projects, with MegumaGold’s developing gold projects and district-scale exploration potential will create a combined entity that will be the leader in advanced exploration and regional development of the Meguma gold district.

Theo Van der Linde, President of MegumaGold stated, “We believe this consolidation of assets is the logical step in building a company optimally positioned to capitalize on the upside of the developing gold camp in Nova Scotia. Combining Osprey’s assets of Goldenville and Caribou with MegumaGold’s developmental projects contained within its under explored 107,000 ha land position presents a compelling opportunity for our shareholders. The combination of MegumaGold’s commanding land position in the Belt and Osprey’s deposits creates a combined entity that through a continued corporate and exploration activity, would represent a go-to critical mass Canadian gold and exploration opportunity in the Meguma Gold District, adjacent to Atlantic Gold’s operations which was acquired by St Barbara Ltd for $722 million cash consideration in July 2019.”

Osprey Gold President, Cooper Quinn commented, “Our board of directors believes the proposed combination of Osprey and MegumaGold creates an attractive opportunity in Nova Scotia for Osprey shareholders by forging an entity of real scale, utilizing Osprey’s historically producing, resource-stage projects with the significant exploration ground held by MegumaGold, and management teams with complementary skill sets. Our vision is to build the leading explorer in Nova Scotia, developing a resource base through exploration on deposits across the Meguma terrane where geology, access, and infrastructure align and we believe that the combined entity and its personnel will be positioned to raise and deploy the capital to do just that.”

Nova Scotia
Nova Scotia is currently experiencing a resurgence in gold exploration, predominantly as a result of the St Barbara Ltd. acquisition of Atlantic Gold and its Moose River Consolidated Project in July 2019 for C$722 million cash consideration. The Moose River Consolidated Project is currently producing gold from the Touquoy open-pit mine located approximately 10 km south of Osprey’s Caribou Project and 4 km west of MegumaGold’s Touquoy West Project.