OMAI secures over CAN$4M to fund local operations
Past production at Omai is summarised in several Cambior Inc. documents available on Sedar.com, including March 31, 2006 AIF and news release August 3, 2006 (Photo and caption courtesy of OMAI)
Past production at Omai is summarised in several Cambior Inc. documents available on Sedar.com, including March 31, 2006 AIF and news release August 3, 2006 (Photo and caption courtesy of OMAI)

–acquires over 1,500 more acres of land for prospecting, mining

WITH the new year fast approaching, OMAI Gold Mines has increased its capital base by over CAN$4 million to further finance its local operations.

The company completed its previously announced non-brokered private placement for gross proceeds of CAN$4,882,566 through the issuance of 44,386,972 units at a price of CAN$0.11 per unit. Each unit consists of one common share and one-half of a common share purchase warrant.

From the gross sum, the company was required to pay cash finders’ fees of CAN$173,644.02 and issued 1,578,581 finders’ warrants, each of which entitles the holder to purchase one common share at a price of CAN$0.11 until December 17, 2023.

“The net proceeds of the offering will be used to fund exploration on the company’s Omai gold project in Guyana and for general working-capital purposes,” OMAI said in a recent statement.

After ceasing operations here years ago, the company made a return to Guyana, specifically to its worksite in the Cuyuni-Mazaruni region, where it intends to make an initial investment of US$12 million.

It was reported that the company had wrapped up operations in 2015 after 24 years of service in Guyana. OMAI, during its “glory days,” was listed as being one of the largest gold mines in Guyana and in the world, with estimated reserves of 3.7 million ounces of gold.

Since its return to Guyana, the company has discovered large deposits of high-grade minerals during ongoing geological surveys at the Wenot Pit.

The assay results from the first two holes at the pit, 12WED11 and 12WED13, which were never logged or sampled, indicate that high-grade mineralisation extends below the Wenot Pit, and there is expansion potential of gold mineralisation to new sedimentary targets.

Chief Executive Officer (CEO) of Omai, Elaine Ellingham, was reported recently as saying: “Our recently completed drilling (10,000 metres), mostly focused on Wenot, confirmed that the gold-mineralised Wenot shear corridor continues to a considerable depth below the past-producing pit, along the full 1.7 km strike.

“With the independent Qualified Person (QP) preparing our initial NI 43-101 report on this Wenot deposit, we have commenced our next phase of exploration.”

According to the CEO, drilling restarted in November, with a new focus on the strike extension of the Wenot pit, both east and west, as well as some initial scout holes on the large Broccoli Hill target, and other unmined areas with potential for near-surface gold deposits amenable to open-pit mining.

In a move that will further expand the company’s operations, OMAI, on December 22, closed the acquisition of the “Eastern Flats” property, a 1,519-acre property consisting of prospecting and mining rights, located immediately east and contiguous to OMAI’s 4,590-acre prospecting licence, which includes the past-producing OMAI Mine.

“The Eastern Flats property is strategically located along strike of the Wenot shear corridor that extends 1.7 km along the axis of the past-producing Wenot pit,” the company said.

Recent airborne geophysics over the Eastern Flats, consisting of magnetics and radiometrics, highlighted several prospective targets bearing geophysical signatures which are similar in nature to those associated with gold deposits on the adjoining OMAI property.

OMAI’s chief geologist, John Spurney, said: “The broad gold-in-soil geochemical anomalies at Eastern Flats, impressive as they are, saw little follow up investigations during the 1990s mine era, even though at greater than 100 ppb [parts per billion] gold and, in some instances, up to 500 ppb.”

Moving forward, the company’s short-term priorities are to verify and expand the known resources, while advancing exploration on key targets, providing a solid opportunity to create significant value for all stakeholders.
It was reported that the company will not only be engaging and potentially supporting small miners, it will also hire hundreds of people as over 1,000 persons were employed during the company’s early days of operations in Guyana.

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