Omai Gold Mines closes non-brokered private placement

NOT FOR DISTRIBUTION IN THE UNITED STATES OR TO U.S. NEWSWIRE SERVICES

Omai Gold Mines Corp. (TSX VENTURE:OMG) ("Omai" or the "Company") is pleased to announce that further to its press releases dated June 2, 2021 and June 8, 2021, the Company has closed its non-brokered private placement with a lead order from Silvercorp Metals Inc. ("Silvercorp"). The Company issued 29,411,757 units (the "Units") at a price of C$0.17 per Unit for aggregate gross proceeds of C$4,999,999. Each Unit consists of one common share ("Common Share") and one-half of a common share purchase warrant. Two such half warrants constitute a full warrant (a "Warrant"). Each Warrant entitles the holder to acquire one Common Share at an exercise price of C$0.23 for a period of 36 months from the closing date of the Offering.

Silvercorp, an existing shareholder, acquired 4,464,706 Units pursuant to the Offering for gross proceeds of C$759,000. As a result, Silvercorp holds an approximately 15.2% equity stake in the Company on a basic basis and 16.0% on a partially diluted basis.

The proceeds from the Offering will be used for an expanded exploration program at the Omai Gold Project.

Finders' fees of C$201,068 cash and 1,182,752 broker warrants ("Broker Warrants") were paid to certain finders. Each Broker Warrant entitles the holder to acquire one common share of the Company at a price of C$0.17 for a period of 36 months from the date of issuance.

Common Shares issued pursuant to the Offering and any Common Shares issued upon the exercise of Warrants or Broker Warrants will be subject to a four-month and one day hold period from the closing date in accordance with applicable securities laws of Canada.

The private placement is subject to TSX Venture Exchange approval.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Omai Gold Mines Corp.
Early prospectors identified Guyana's vast mineral wealth 130 years ago, and at the heart of the country's gold mining history is the Omai mine: a multi-million-ounce deposit that was once South America's largest producing gold mine. We're building on this past success with new tools, relationships and vision to bring this under-explored gold district back to life, providing a unique opportunity for all stakeholders to participate in value creation.

Avalon Gold Exploration Inc., a wholly owned subsidiary of Omai Gold Mines Corp., holds a 100% interest in the Omai Prospecting License covering 4,590 acres, including the past producing Omai gold mine.

For further information, please see our website www.omaigoldmines.com or contact:

Mario Stifano
President and Chief Executive Officer
info@omaigoldmines.com

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain "forward-looking statements" under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to results of the exploration program. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; the ability to attract financing on these terms or at all; the price of gold and copper; and the results of current exploration. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

The Conversation (0)
Omai Gold Mines

Omai Gold Mines

Overview

Base and precious metals mining make up a significant portion of Guyana’s economy. The country’s mineral heritage not only includes high-quality copper, iron and nickel occurrences but well-known deposits of gold, bauxite and diamonds. Leveraging Guyana’s pro-mining government and the country’s stable Mining Act, resource companies operating in the country could offer investors significant returns.

Omai Gold Mines’ Company Highlights

  • Omai Gold Mines is a mineral exploration company focused on developing the highly prospective high-grade Omai gold mine in Guyana. This asset was once Guyana’s largest gold mine, producing 3.7 million ounces of gold from 1992 to 2006.
  • The company currently has 100 percent interest in Omai, which was granted by Guyana’s government. This grant offers fast-tracked development and drilling potential.
  • The Omai asset includes two open pits: the main Fennell pit and the Wenot pit. Omai Gold Mines expects to engage in productive exploration and advance drilling campaigns starting in 2021.
  • Omai Gold Mines is also owns the high-quality Grenfell property in the Kirkland Lake region of Ontario, Canada. The limited exploration history poses exciting gold discovery possibilities for the company.
  • The company presently has just under 200 million shares issued, and strategic shareholders that include Silvercorp Metals at 15.1 percent, Sandstorm Gold Royalties at 9.9 percent and Gold Spot Discoveries at 3 percent.
Get access to more exclusive Gold Stock profiles here.

Rebuilding the Success of the Historic Omai Gold Mine in Guyana

Chen Lin, silver bars.

Chen Lin: Gold, Silver Prices Breaking Out, My Stock Strategy Now

Chen Lin of Lin Asset Management discusses what's behind gold's latest price move.

"Recently the stock in China's gold futures market just went parabolic — that actually preceded the recent gold breakout ... both had been rangebound for a long, long time, and then suddenly started breaking out two weeks ago," the expert explained.

Keep reading...Show less
Red pushpin marking Queensland on a detailed map of Australia.

Newmont Withdraws from Mount Coolon Joint Venture, GBM Regains Full Ownership

GBM Resources (ASX:GBZ) announced it has regained ownership of the Mount Coolon gold project in Queensland following Newmont’s (TSX:NEM,NYSE:NEM,ASX:NEM) termination of a 2022 farm-in agreement.

GBM made the deal with Newcrest Mining before that company was acquired by Newmont in 2023.

Newmont's withdrawal is part of its focus on divesting non-core assets to hone in on its more profitable and stable tier one operations. The company has made substantial adjustments to its portfolio this year.

Keep reading...Show less
Three gold bars on price chart with magnifying glass.

What Was the Highest Price for Gold?

Gold has long been considered a store of wealth, and the price of gold often makes its biggest gains during turbulent times as investors look for cover in this safe-haven asset.

The 21st century has so far been heavily marked by episodes of economic and sociopolitical upheaval. Uncertainty has pushed the precious metal to record highs as market participants seek its perceived security.

And each time the gold price rises, there are calls for even higher record-breaking levels.

Keep reading...Show less

Latest Press Releases

Related News

×