Omai GOLD Mines Closes Non-Brokered Private Placement FOR Gross Proceeds of $4.22 Million
OMG
OMAI GOLD MINES CLOSES NON-BROKERED PRIVATE PLACEMENT
FOR GROSS PROCEEDS OF $4.22 MILLION
NOT FOR DISSEMINATION IN THE UNITED STATES
(ALL DOLLAR AMOUNTS EXPRESSED ARE IN CANADIAN DOLLARS)
Toronto, Ontario – December 22, 2022 – Omai Gold Mines Inc. (TSXV: OMG) (OTCQB:
OMGGF) (“Omai Gold” or the "Company") is pleased to announce that the Company has
closed its previously announced non-brokered private placement (the “Private Placement”)
and issued 8 4,400,000 common shares of the Company (“Share”) at a price of $0.05 per
Share for gross proceeds of $4,220,000.
The net proceeds from the Private Placement will be used to advance exploration on nearby
targets and expand known Mineral Resources at the Company’s Omai Project in Guyana and
for general working capital purposes.
Two directors of the Company participated in the Private Placement , which result ed in related
party considerations pursuant to TSX Venture Exchange Policy 5.9 and Multilateral Instrument
61-101 – Protection of Mi nority Security Holders in Special Transactions (“MI 61 -101”). The
Company has relied on the exemptions contained in section 5.5(a) of MI 61 -101 for an
exemption from the formal valuation requirement and section 5.7(1)(a) of MI 61- 101 for an
exemption fro m the minority approval requirement as the fair market value of the transaction
insofar as it involved interested parties did not exceed 25% of the Company’s market
capitalization.
In connection with the P rivate Placement, the Company paid cash finder’s fees of $170,100
to three arm’s length finders representing 6% of the proceeds raised from subscriptions by
certain placees introduced by the finders. The Company has issued to the finders share
purchase warrants (the “Finder’s Warrants”) entitlin g the purchase of an aggregate 3,402,000
common shares . Each Finder’s Warrant is exercisable at $0.05 to purchase one common
share of the Company until December 22, 2024.
In accordance with applicable Canadian securities laws , all securities issued pursuant to the
Private Placement are subject to a hold period until April 23, 2023.
Completion of the Private Placement and payment of any finder’s fees remain subject to the
receipt of all necessary regulatory approvals, including approval of the TSX Venture
Exchange.
OMG NEWS RELEASE 2
Elaine Ellingham, CEO commented “2022 was a transformational year for Omai Gold. We
delivered two NI 43-101 Mineral Resource Estimates : in January, we announced our initial
resource estimate for Wenot and , in October, a second NI 43-101 more than doubled the initial
resource estimate announced in January, with a 14% expansion of the Wenot resource and the
integration of the Gilt Creek gold resource.
In 2023, our goal is to further e xpand Omai’s already substantial gold resources through an
aggressive drilling program focused on very prospective nearby exploration targets with similar
geology to our known gold deposits. We believe that the Omai property has the potential to be a
new gold camp with additional near surface economic deposits within this proven geology that
hosted past gold production of over 3.7 million ounces. Drilling is set to re-start the second week
of January.
With the completion of this financing and a solid base of resources, we are very well positioned
to launch our next phase of exploration focused on new discoveries that would be a major catalyst
for the Company.”
About Omai Gold Mines Corp.
Omai Gold Mine s Corp. holds a 100% interest in the Omai Prospecting License that includes
the past producing Omai gold mine in Guyana, and a 100% interest in the adjoining Eastern
Flats Mining Permit s, together covering 6,109 acres (24.69 km2). The Company recently
announced an updated Mineral Resource Estimate that includes the Wenot shear -hosted gold
deposit and the adjacent Gilt Creek intrusion -hosted deposit. The NI 43- 101 Mineral Resource
Estimate includes: 1,907,600 ounces of gold (Indicated) at an average grade of 2.07 g/t gold
and 1,777,600 ounces of gold (Inferred) at an average grade of 2.10 g/t gold . Once South
America’s largest producing gold mine, Omai produced over 3.7 million ounces of gold
between 199 3 and 2005. Mining ceased at a time when the average gold price was less than
US$400 per ounce . As a brownfields project, Omai benefits from good access, and a wealth
of historical data that provides knowledge of the geology , nature of the gold mineralization on
the property, as well as metallurgy and recoveries. The Company’s prio rity for 2023 is to drill
the key exploration targets that hold potential for significant new discoveries while continuing
to expand the Wenot deposit.
For further in formation, please see our website www.omaigoldmines.com or contact:
Elaine Ellingham, P.Geo.
President & CEO
+1-416-473-5351
OMG NEWS RELEASE 3
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.
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 the timing of completion of the drill program, and the potential for the Omai Gold Project
to allow Omai to build significant gold Mineral Resources at attractive grades, and 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 price of gold and copper; and the results of current exploration. Further,
the Mineral Resource data set out in this news release are estimates, and no assurance can be
given that the anticipated tonnages and grades will be achieved or that the indicated level of
process recovery will be realized. There can be no assurance that forward-looking 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 int ention 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.