A mineral agreement covering the business conditions for the development and operation of the Omai gold project in Guyana in South America has been signed, Cambior (TSE) reported.
Partners in the mining project, to be operated by Guyanese-registered Omai Gold Mines Ltd., are Cambior with a 60% interest, Golden Star Resources (TSE) with 35% and the Guyanese government with 5%. Cambior President Louis Gignac is president of Omai Gold Mines.
Cambior said that Export Development Corp. and the Multilateral Investment Guarantee Agency have given formal approval to offer political-risk insurance worth up to US$163 million. Terms and negotiations of the insurance contract are being negotiated.
The Val d’Or, Que.-based gold producer said it is negotiating project financing for Omai with several banking institutions. A feasibility study for Omai, completed in 1990, indicated annual production of 215,000 oz. gold during a 10-year mine life. The capital cost for the mine is estimated to be US$152 million. A production startup is expected in 1993.
Be the first to comment on "Partners sign Omai agreement"