Operations at Omai expected to resume after multimillion-dollar deal with Canadians

The Omai Gold Mines may soon see some drilling recommencing, as Avalon Investments Holding and Anconia Resources Corp received a strategic investment from Silvercorp Metals Inc.

The strategic investment, which is to the tune of US$4.5 million, was announced on Tuesday by the various stakeholders. Silvercorp, a Canada-based company with interest in precious metals, was issued 30,000,000 common shares of Avalon Investments Holding, which has a 100 per cent indirect interest in Guyana’s Omai Gold Mines.
The investment will also see Anconia Resources Corp and Silvercorp entering an investor rights agreement, which will give Silvercorp the right to participate in the company’s equity financings. Mario Stifano, incoming President and CEO of the Resulting Issuer, hinted at the commencement of drilling at Omai this year.
“We are very pleased to have received the support of Silvercorp as we continue advancing the Omai Gold Mine. Omai has historically produced over 3.7 million ounces of gold and has the potential to again become a tier-one gold asset in the Americas,” Stifano said.
Meanwhile, incoming Executive Director and founder Dennis Clement also highlighted Omai’s untapped potential. According to him, Omai has the potential to become the leading gold company in Guyana.
“Silvercorp’s investment further validates the significant potential of Omai to become the leading gold exploration company in Guyana. With Silvercorp’s investment, Avalon is fully financed to complete the RTO listing and to carry out its exploration plans over the coming year,” he said in a statement.
There has been much upheaval in the local mining sector of recent. And Silvercorp has played an important part in it. Silvercorp had previously entered an agreement with fellow Canadian company Guyana Goldfields for Silvercorp to buy out their shares
That was until a Chinese company – Zijin Mining Group Co, a leading global mining company specialising in gold, copper, zinc, and other mineral resource exploration and development – bettered their purchasing price and the conditions that were agreed upon.
Silvercorp was given an option to better Zijin’s price within a certain timeframe. However, Silvercorp failed to make a superior offer, resulting in Guyana Goldfields accepting the offer of the Chinese mining company.
The agreement between the two was finalised at an annual and special meeting of shareholders on July 27. Meanwhile, Goldfields, which has laid off a significant number of its workers, is in care and maintenance mode.