The company is looking to raise gross proceeds of up to $4.5 million from the placement of up to 40.9 million units priced at $0.11 per unit. The units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.20 for 24 months.
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Video Transcript:
I’m Katriina Cotten for Investmentpitch Media
Omai Gold Mines (TSXV:OMG), has announced a non-brokered private placement.
The company is looking to raise gross proceeds of up to $4.5 million from the placement of up to 40.9 million units priced at $0.11 per unit.
The units consist of 1 share and one-half a warrant, with each full warrant exercisable at $0.20 for 24 months.
Net proceeds will be used for exploration and drilling at the Omai project and for general corporate purposes.
The shares are currently trading at $0.10.
Through its wholly owned subsidiary, Avalon Gold Exploration, the company holds a 100% interest in the Omai Prospecting License, which covers 4,590 acres, including the past producing Omai gold mine in Guyana, South America.
Mining at Omai has been recorded since the late 19th century, with the high grade open-pit Omai Gold Mine once South America’s largest producing gold operation.
When it was operating as a modern mine between 1993 and 2005, Omai produced more than 3.7 million ounces of gold.
Mining ceased at a time when the average gold price was less than US$400 per ounce, leaving significant drilled resources untapped and prime exploration targets untested.
Elaine Ellingham, P.Geo., President and CEO, stated: “Our recently completed drilling (~10,000 metres), mostly focused on Wenot, confirmed that the gold-mineralized Wenot shear corridor continues to considerable depth below the past producing pit, along the full 1.7 km strike. Some of our best intersections from this year’s drilling included: 16m @ 9.0 g/t Au (hole 001), 9.0m @ 6.6 g/t Au (hole 008), 19.0m @ 6.9 g/t Au (hole 013) and 20 m @ 4.63 g/t Au (hole 022). With the independent Qualified Person preparing our initial NI 43-101 report on this Wenot deposit, we have commenced our next phase of exploration.”
Drilling restarted this week with the company focusing on the strike extensions 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.
The company plans to initiate drilling in 2022 to both verify and explore the expansion potential of the historic resource beneath the past producing Fennell deposit.
For more information, please visit the company’s website www.OmaiGoldMines.com contact Elaine Ellingham P.Geo., President & CEO, at 416-473-5351 or by email at elaine@OmaiGoldMines.com.
I’m Katriina Cotten for Investmentpitch Media
