Member Info for karl345345

Chicken, i'm optimistic also but lets not talk about dilution at the current share price. I believe the majors will walk away and omi will get 100% of anza back. That would be a good result. They've had drilling for free and a new discovery at Pepas, all paid for by the majors. With the current agreement as it stands they would have been diluted down to 25%.

I don't think omi should go it alone. A favourable 50/50 agreement with Collective would be ideal (similar to ggp/newcrest)

It appears they did delay the $2m for as long as they could. The money came quite late since they’d indicated in September of their intentions to move to phase 2. Big companies move slowly and perhaps they’ve only just decided not to move to phase 2. Newmont were always a bit iffy about Columbia. That’s why they bought agnico on board.

If Petro had not won the election, the majors might have stuck around. Big miners are getting a bad press from elements within the new administration in Columbia. What’s needed is nimble local explorers with good community relations like Collective - they’re banging out great drill results and their market cap has doubled in the last 6 months.

Breaktwister, I think the mma situation will be resolved within the next 4-8 weeks. My own opinion is that newmont and agnico will walk away and hand back the project to omi. I also believe there will be no up front cash payment. Indeed, omi could possibly get it back for free since it is them who are pulling out. Both Brad and Louie have said that resolving this is there number one priority so I’m hopeful we shan’t have to wait long.

To get the project back would be the best outcome imho. Been researching collective mining and they’d be an ideal partner. The directors were from continental who sold anza to Waymar who in turn sold it to orosur. They know the area well.

Yela, if omi get the 51% back for a song, that would be a great deal. It doesn’t in no way suggest that there is no value in anza. On the contrary, a second gold deposit was opened up on pepas (150m at 3g). That could possibly turn into another apta

It was good to get Louie’s thoughts as he is the one who has to steer us through this. Clearly, agnico and newmonts priorities have changed since their mega mergers.

Given that they are essentially reneging on the contract they should simply hand 100% of the project back to omi for free - no charge. That would be a good result and free omi to strike a better deal with a mid cap explorer.

I trust Louie to strike a good bargain. Give him time. This mess was caused by agnico and newmont. Orosur are not at fault.

I’ve given up trying to work out what’s going on here.

All parties agree according to tpi that anza is a great asset. The majors are following the contract to keep their foot in the door it seems ($2m payment). Yes, there is some political uncertainty with the new left wing govt but they won’t be producing for years. Just exploring with minimal environmental impact.

The new mining regs will be bedded down by September so perhaps that is when the new drilling campaign will kick off.

Fair comment breaktwister. Columbia has a new leftist government so there could be more hoops to jump through when drilling such as environmental permits. But from what I’ve read though, there should be no real impact for omi and the partners because they are not at the production stage and they’re not in the oil and coal business.

If fixed costs are $142k a month/$1.7m a year, omi should still have a cash balance of $2m this time next year given todays cash balance of $3.8m. Therefore there is no need for a cash raise for a good 12/18 months, perhaps longer.

A lot could happen in the meantime.

The most important takeaway from todays results is the cash balance. Good to see they still have just under $4m as of todays results

I've read that the Columbian govt will be updating their mining code soon so maybe they're waiting for clarity on this issue. Perhaps ageos knows more?

The important thing is that the omi have received the $2m which means that phase 2 is a deffo.

Ageos, you wrote, “Orosur market cap (will be) many multiples of its present value” by late next year. As shareholders, that’s what we all hope for. I know you don’t take to hyperbole but can I ask what makes you say that?

I think the partners have decided to delay drilling until September hence why it’s so quiet. Conjecture on my part but they did allude to delays may run into Q3.

Perhaps they’re waiting for all the drilling permits to come through including possibly the new area in the south ageos alluded to?

Starbright lol. Are you saying we should short omi everytime bhargav announces a buy ?

We're nearly at the end of this bear market. We should all be in the money by december imho.

Hang in there.

I agree with all your primary parameter’s bhargav. I think all that will happen. When? That is the $1m dollar question. But I think mgt are working to a different timescale: months and years, whereas shareholders want quickish results.

I think things will kick off in summer with a flurry of RNS’s.

Bhargav, after listening to the December webinar from about 18m in, I feel quite optimistic that now the $2m has been received, the JVA is a 100% done deal, major sticking points have been resolved and that OMI shareholders won't lose out.

No doubt shrewd investors will be accumulating with the price under 10p.

Bhargav, I just listened to the Dec webinar again and Brad says that there are two major sticking points to phase 2 renewal (a tax issue and changes requested by Agnico/Newmont); he goes on to say however, that when these two issues are resolved that will trigger the $2m payment.

My point is, I think the major points have been resolved by the parties and that the formal JVA is just a matter of time.

Seingred, just one further point about mining in Columbia. Its true there are a lot of environmental concerns expressed by the new government but I don't think that will affect OMI unduly. La Colosa has a resource of 28m ounces so it is a massive mining project. Hard to compare the two. omi is very, very early stage. Also, Orosur and partners are years away from production. First they have to prove up the resource.

In addition, Ageos gave a good explanation of the forestry protection orders and omi's response to it which won't affect them in a significant way.

Seingred, I agree, there is nothing wrong with taking a cautionary view. However, we must remember that we have had a severe sector wide bear market in precious metals for two years and there was no escaping that, even for the strong companies. To be frank though, I think the bear market will be over by summer.

As far as the cash position is concerned, I think that is a moot point until mid next year. A lot can happen in the meantime.

I wish I was building my position now in omi as a fresh investor.

The cash shortfall is probably down to omi incurring expenditure while the JV is sorted. They will be reimbursed later

I am not sure why there is so much talk about a buy out clause. By just following the 2018 agreement they will own 75% and up to a potential 90% if this goes to production and newmont/Agnico fund it.

Besides, why would omi allow a buyout clause to be inserted just yet when the land package is largely undrilled? They have all the power currently. These things have to be done amicably. There are reputations to consider. Majors have to work with juniors all the time.