Silvercorp snaps up 15.2% shares in Omai Gold Mines
– to now own 4.4 million shares with option to purchase more
Canadian company Omai Gold Mines, which recently made a deal with fellow Canadian company Silvercorp Metals to sell 15.2 per cent of its shares, has officially concluded the transaction.
According to Omai Gold Mines, the company has closed its deal with Silvercorp Metals, which made the lead offer. This means that Silvercorp will now own 4.4 million shares, and an option to purchase additional shares over a 36-month period.
The deal grants Silvercorp a 15.2 per cent stake in Omai Gold Mines, which has its operations in Region Seven. The money generated by the deal will be used by Omai for its expanded exploration activities. However, the shares issued will be subject to a four-month, one day hold based on Canadian laws.
When the deal was first announced, Omai Chief Executive Officer (CEO) Mario Stifano had expressed pleasure at the deal that was procured. He had noted that the potential to significantly expand the open pit potential for minerals is great.
“We are delighted that Silvercorp is maintaining its pro rata ownership in Omai Gold Mines. The positive results from the ongoing drilling and assaying program at the Wenot target that we previously announced – including 16.0 meters of 9.0 grams per tonne (g/t) gold, 32.1 meters of 3.6 g/t gold, and 14 meters of 9.1 g/t gold, indicates the potential to significantly expand the open-pit mineralization at Wenot while it remains open at depth and on strike,” Stifano had said.
“Given the location on the prospective Guiana Shield that is home to other major gold discoveries, Omai exhibits excellent potential to host near surface as well as high-grade gold mineralization such as hole OMU-28 which drilled 101 meters of 34.91 g/t gold at the Fennell deep target.”
Omai has said previously that the proceeds from the Offering will be used for additional drilling under the Wenot deposit in Region Seven. It will also be used for the preparation of the company’s inaugural 43-101 resource estimate for Wenot, and to advance new high-priority exploration targets at Omai, including Broccoli Hill.
Omai Gold Mines, which has already started a 5000-metre drilling programme in the Wenot pit, had announced in April the presence of high-grade gold in the first two holes that extend at least 100 metres below.
The company only returned to the Wenot and Fennell pits at the Region Seven (Cuyuni-Mazaruni) site in 2020 after leaving Guyana in 2015. It had announced in December that it would be pressing forward with the 5000-metre drilling programme.
It was only last November that Omai Gold Mines, which is aiming to reclaim its place as Guyana’s top gold producer, had announced the impending resumption of trading on the Toronto Stock Exchange, following the recent reverse takeover of Avalon Investment Holdings.