Omai Gold Mines closes non-brokered private placement

- June 28th, 2021

Omai Gold Mines Corp. 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. . The Company issued 29,411,757 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 and one-half of a common share purchase …

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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.


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