TORONTO, June 02, 2021 (GLOBE NEWSWIRE) — Omai Gold Mines Corp. (TSX VENTURE:OMG) (“Omai” or the “Company”) is pleased to announce a non-brokered private placement offering (the “Offering”) for aggregate gross proceeds of up to C$3,000,000 through the issuance of units of the Company (the “Units”) at a price of C$0.17 per Unit. Each Unit will consist of one common share (“Common Share”) and one-half of a common share purchase warrant. Two such half warrants constitute a full warrant (a “Warrant”). Each Warrant entitles the holder to acquire one Common Share at an exercise price of C$0.23 for a period of 36 months from the closing date of the Offering.

Silvercorp Metals Inc. (“Silvercorp”), an existing shareholder, has indicated its intention to subscribe for approximately C$455,000 of the Offering. Assuming total gross proceeds from the Offering of C$3,000,000, Silvercorp is expected to hold an approximately 15.2% equity stake in the Company on a basic basis and increase its current ownership to 15.7% on a partially diluted basis.

Mario Stifano, Chief Executive Officer of Omai Gold Mines, commented: “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. 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.”

The proceeds from the Offering will be used for additional drilling under the Wenot deposit, 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.

The Company may pay a finder’s fee of 7% cash as well as 7% broker warrants for Units sold to certain investors (“Broker Warrants”). Each Broker Warrant entitles the holder to acquire one common share of the Company at a price of $0.17 for a period of 36 months from the date of issuance.

The Offering is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.

Qualified Person
Dr. Dennis LaPoint, PhD, is a Qualified Person (QP) under National Instrument 43-101 “Standards of Disclosure for Mineral Projects” and has approved the technical information contained in this news release. Dr. LaPoint is not considered to be independent for the purposes of National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

About Omai Gold Mines Corp.
Early prospectors identified Guyana’s vast mineral wealth 130 years ago, and at the heart of the country’s gold mining history is the Omai mine: a multi-million-ounce deposit that was once South America’s largest producing gold mine. We’re building on this past success with new tools, relationships and vision to bring this under-explored gold district back to life, providing a unique opportunity for all stakeholders to participate in value creation.

Avalon Gold Exploration Inc., a wholly owned subsidiary of Omai Gold Mines Corp., holds a 100% interest in the Omai Prospecting License covering 4,590 acres, including the past producing Omai gold mine.

For further information, please see our website or contact:

Mario Stifano
President and Chief Executive Officer
[email protected]

Cautionary Note Regarding Forward-Looking Statements

This news release includes certain “forward-looking statements” under applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements with respect to results of the 2021 exploration program and the completion of the 43-101 resource estimate. Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic, competitive, political and social uncertainties; delay or failure to receive regulatory approvals; the ability to attract financing on these terms or at all; the price of gold and copper; and the results of current exploration. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.