Bullet Holding Corporation and Magnolia Capital entered into settlement agreement to acquire Otu Central Project of Bullet Holding Corp. from O2Gold Inc. (TSXV:OTGO) on June 13, 2022. O2Gold initially acquired Otu Central Project of Bullet Holding Corp. (Buenaventura) from Bullet and Magnolia pursuant to a share purchase agreement dated as of October 26, 2020. Pursuant to the SPA, O2Gold agreed to pay consideration in Three installments, First installment was paid at the time of closing, second and third installments were payable on October 26, 2022. As of June 13, 2022, O2Gold Inc. does not have sufficient cash reserves to satisfy the estimated Top-up Payment and In light of O2Gold's financial difficulties, Bullet Holding Corporation and Magnolia Capital entered into settlement agreement pursuant to which the parties thereto agree to terminate the SPA. The transaction is subject to approval by target shareholders and regulatory approvals. Following the review of special committee, the Special Committee has unanimously recommended that the Board approve the
Settlement; to which The Board of o2Gold (with Bob Allen) approves the settlement. The board of directors of O2Gold Inc. established a special committee comprised of directors independent from the Settlement to review any proposed settlement with Bullet and Magnolia. The Settlement is expected to close in early August 2022.