MegumaGold Completes Acquisition of Osprey Gold, Creating a Premier Canadian Gold Exploration and Development Company

HALIFAX, Nova Scotia and VANCOUVER, British Columbia, Sept. 14, 2020 (GLOBE NEWSWIRE) -- MegumaGold Corp. (CSE: NSAU, OTC: NSAUF, FWB: 2CM2) (“MegumaGold” or the “Company”) is pleased to announce that it has completed its previously announced plan of arrangement (the “Arrangement”) acquiring all of the issued and outstanding common shares of Osprey Gold Development Ltd. (“Osprey”).

The Arrangement creates a leading Nova Scotia focused gold development and exploration company with a consolidated land package combining Osprey’s historically producing, resource stage projects with the expansive underexplored exploration ground held by MegumaGold.

Theo Van der Linde of MegumaGold stated, “The Company is executing on its plan of consolidating assets in what is proving to be an up and coming gold district. The natural synergies between the Osprey and Meguma assets align with our vision and provide shareholders with exposure to advanced stage resource projects and district scale exploration upside potential. We welcome the Osprey shareholders to Meguma as we continue to build value in Nova Scotia.”

In connection with the closing of the arrangement, Cooper Quinn, the former President of Osprey, stated, “The combination of Osprey’s and MegumaGold’s assets gives the Company a wide variety of exploration targets in addition to Osprey’s advanced assets, to follow our vision of creating a company with significant gold resources in a low-cost, re-emerging mining jurisdiction with recent success. The combined company holds an excellent suite of assets, from near-resource expansion to completely untested targets 4 kilometers along strike from operating open pit operations. The team looks forward to delivering value and progressing our combined assets for the benefit of all shareholders and stakeholders.”

Exploration Objectives

• Near term – Complete targeting, permitting and commence drilling programs at Caribou, Killag, and Touquoy West. Commence detailed ground survey program on optioned Genius Metals Property.
• Medium term - Delineate additional Mineral Resources on existing deposits in the Company’s portfolio and advance existing exploration targets through discovery drilling.
• Through a pipeline of various stage projects the Company plans to rapidly advance existing early-stage exploration targets to deliver initial Mineral Resources, incorporating them into the combined Company’s resource inventory over multiple deposits across the Meguma terrane.

Pursuant to the Arrangement, the outstanding common shares of Osprey (each an “Osprey Share”) were acquired by MegumaGold, and in exchange, shareholders of Osprey received an aggregate of 36,671,166 common shares of MegumaGold, representing 0.5 of a common share of MegumaGold for each Osprey Share previously held (the “Transaction”). In addition MegumaGold assumed Osprey’s obligations under outstanding share purchase warrants, pursuant to which former Osprey warrantholders now hold warrants entitling them to acquire an aggregate of 11,158,378 common shares of MegumaGold, and issued replacement stock options pursuant to which former Osprey stock option holders now hold options to acquire an aggregate of 2,382,500 common shares of MegumaGold.  In connection with closing, Osprey waived the previously announced condition for MegumaGold to complete a concurrent private placement.