BRUNSWICK GOLD TAKES LEGAL ACTION AGAINST PANDION AND LIONSBRIDGE FOLLOWING INVESTIGATION AT OTSO GOLD LTD.

HARTFORD, Conn., Jan. 7, 2022 /PRNewswire/ -- Brunswick Gold Ltd. ("BGL" or "the Company"), announces today that it has filed legal claims against Pandion Mine Finance LP, PFL Raahe Holdings LP, Rivermet Resource Capital LP, Joseph Archibald and Ryan Byrne (collectively known as "Pandion"), and Lionsbridge Capital Pty Ltd., Westech International Pty Ltd., Brian Wesson and Clyde Wesson (collectively known as "Lionsbridge") in Canada and the United States.    

In legal documents, a series of instances are outlined in which BGL alleges that it was misled ahead of and during the company's initial investment in Otso Gold Corp ("Otso"), finalised in 2021. Had these alleged facts been known to BGL at the time, BGL would not have made an investment into Otso.

These legal actions follow the abrupt resignation of Brian Wesson and Clyde Wesson – who were formerly Board Directors at Otso and are Principals at Lionsbridge – and the arrest of Brian Wesson by law enforcement agencies in Finland under criminal suspicion of aggravated embezzlement. In the course of the Company's internal investigation, further evidence has emerged of irregular business practices and significant undisclosed financial liabilities that were incurred prior to BGL's investment in Otso.

The complaint filed in the Connecticut Superior Court (Brunswick Gold Limited v. Pandion Mine Finance LP, et al., Case No. FST-CV22-6054825-S) seeks damages against Pandion Mine Finance LP, PFL Raahe Holdings LP, Rivermet Resource Capital LP, Mr. Archibald and Mr. Byrne for their alleged roles in this misconduct, and alleges claims for Fraud and Conspiracy to Defraud, Aiding and Abetting Fraud, and for violating the Connecticut Unfair Trade Practices Act.

The Civil Claim filed in the Supreme Court of British Columbia Brunswick Gold Limited v. Pandion Mine Finance LP, et al., S.C.B.C. Vancouver Registry No. 220017), seeks damages against Pandion Mine Finance LP, PFL Raahe Holdings LP, Rivermet Resource Capital LP, Joseph Archibald and Ryan Byrne (collectively known as "Pandion"), and Lionsbridge Capital Pty Ltd., Westech International Pty Ltd., Brian Wesson and Clyde Wesson (collectively known as "Lionsbridge") for their alleged roles in this misconduct, and alleges claims for fraudulent misrepresentation and conspiracy.

BGL has released the following statement concerning these matters:

"The return of the mine to commercial production for the first time in three years could only have happened with BGL's investment in Otso Gold Ltd. Our commitment to ensuring the survival of the mine remains steadfast, but the serious revelations that have come to light in recent weeks must be addressed on behalf of all of Otso's stakeholders that may have been harmed by these improper actions."

Further news releases will be provided on an ongoing basis as appropriate and required by the law, or as otherwise may be determined necessary by the Company.

About the Company

Brunswick Gold Ltd. is the majority shareholder in Otso Gold Corp, a Canadian registered gold mine operator with major operations near the Town of Raahe in Finland. 

SOURCE Brunswick Gold Ltd.