Omai Gold Mines Corp. Upsizes Previously Announced Bought Deal Private Placement to $22 Million
Omai Gold Mines Corp. Upsizes Previously
Announced Bought Deal Private Placement to
$22 Million
Toronto, Ontario--(Newsfile Corp. - January 28, 2025) -
Omai Gold Mines Corp.
(TSXV: OMG) ("
Omai
"
or the "
Company
") is pleased to announce, due to investor demand, the Company and Paradigm
Capital Inc., as co-lead Underwriter and sole bookrunner, on behalf of Haywood Securities Inc., as co-
lead Underwriter, and a syndicate of underwriters (the
"Underwriters"
), have agreed to increase the
size of the Company's previously announced bought deal private placement offering (the
"Offering"
).
Under the amended Offering, 73,334,000 common shares of the Company (the
"Shares"
) are to be
issued at $0.30 per Share (the "
Issue Price
") for gross proceeds of $22,000,200.
In addition, the Underwriters have been granted an option to purchase up to 11,000,100 additional
Shares for additional gross proceeds of up to $3,300,030.
The net proceeds from the Offering will be used for exploration and development, and general working
capital purposes.
The Offering is expected to close on or about February 13, 2025, and is subject to certain closing
conditions including, but not limited to, the receipt of all necessary approvals including the conditional
listing approval of the TSX Venture Exchange and the applicable securities regulatory authorities. The
Offering is being made by way of private placement in Canada, in the United States pursuant to an
exemption from the registration requirements of the
United States Securities Act of 1933
, as amended,
and in such other jurisdictions as may be mutually agreed upon by the Underwriters and the Company.
The securities issued under the Offering will be subject to a hold period in Canada expiring four months
and one day from the closing date of the offering.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there
be any sale of the securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
The Shares have not been, nor will they be, registered under the United States Securities Act of 1933,
as amended, (the "
1933 Act
") and may not be offered, sold or delivered, directly or indirectly, in the
United States, or to, or for the account or benefit of, "U.S. persons" (as defined in Regulation S under the
1933 Act), except pursuant to an exemption from the registration requirements of the 1933 Act.
About OMAI GOLD MINES CORP.
Omai Gold Mines 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
Permits. The Company announced a Preliminary Economic Assessment ("
PEA
") on its Wenot deposit
at Omai on April 4, 2024, supporting an open pit operation to produce 1.84 million ounces of gold over a
13-year period, with an NPV5% of US$556 million at a US$1950/oz gold price1. An updated NI 43-101
Mineral Resource Estimate ("
MRE
") announced February 8, 2024 includes 2.0 million ounces of gold
(Indicated) and 2.3 million ounces (Inferred)
1
. Once South America's largest producing gold mine, Omai
produced over 3.7 million ounces of gold between 1993 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
road access and a wealth of historical data that provides knowledge of the geology and gold
mineralization on the Property, as well as metallurgy, historical process recoveries and many other
relevant mining parameters.
1
The NI43-101 Technical Report dated May 21, 2024, titled "UPDATED MINERAL RESOURCE ESTIMATE AND PRELIMINARY ECONOMIC ASSESSMENT
OF THE OMAI GOLD PROPERTY, POTARO MINING DISTRICT NO. 2, GUYANA", prepared under the supervision of
Eugene Puritch, P.Eng., FEC, CET,
President of P&E Mining Consultants Inc., who is a Qualified Person (QP) and is independent of Omai Gold for the purposes of NI 43-101.
The report
is available on SEDAR+ and on the Company's website at
https://omaigoldmines.com/site/assets/files/5486/omg_wenot_pea_final_may_21_2024.pdf
.
Elaine Ellingham P.Geo. is a Qualified Person (QP) under NI 43-101 "Standards of Disclosure for
Mineral Projects" and has reviewed the technical information contained in this news release. Ms.
Ellingham is not considered to be independent for the purposes of NI 43-101.
For further information, please contact:
Elaine Ellingham, P.Geo.
President & CEO
+1.416.473.5351
David Stewart, P.Eng.
VP Corporate Development & Investor Relations
+1.647.294.8361
Cautionary Note Regarding Forward-Looking Information
This press release contains forward-looking statements or information (collectively, "FLI") within the
meaning of applicable Canadian securities legislation.
Generally, FLI can be identified by the use of statements that include words such as "seeks",
"believes", "anticipates", "plans", "continues", "budget", "scheduled", "estimates", "expects",
"forecasts", "intends", "projects", "predicts", "proposes", "potential", "targets" and variations of such
words and phrases, or by statements that certain actions, events or results "may", "will" "could",
"would", "should" or "might", "be taken", "occur" or "be achieved." FLI herein includes, but is not
limited to, the terms and conditions of the Offering, anticipated regulatory approvals in connection with
the Offering, timing of closing of the Offering, stated use of proceeds of the Offering, statements
regarding the results of the Omai PEA, including the production, operating cost, capital cost and cash
cost estimates, the projected valuation metrics and rates of return, and the cash flow projections, as
well as mineral resource estimates for the Omai Gold Mine.
All statements, other than statements of historical fact, included herein are FLI that involve various
risks, assumptions, estimates and uncertainties. For additional information with respect to these and
risks, assumptions, and other factors that may affect the FLI made in this press release concerning
the Company, please refer to the sections entitled "Cautionary Note Regarding Forward-Looking
Information" and "Risk Factors" in the most recent management discussion and analysis of the
Company, which is available electronically on SEDAR+ (
www.sedarplus.ca
) under the Company's
issuer profile. FLI is not, and cannot be, a guarantee of future results or events. Investors are
cautioned not to put undue reliance on forward-looking statements.
The FLI contained in this press release are made as of the date hereof or as at the date of the
applicable document only and, accordingly, are subject to change after such dates. The Company
disclaims any intent or obligation to update publicly or otherwise revise any FLI or the foregoing list of
risks, assumptions or other factors, whether as a result of new information, future events or otherwise,
except in accordance with applicable securities laws.
Neither the TSX-V nor its Regulation Services Provider (as that term is defined in the policies of the
TSX-V) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR FOR DISSEMINATION IN THE
UNITED STATES
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https://www.newsfilecorp.com/release/238697