Member Info for Professor1

Would they need any kind of placing there to fund the acquisition and hence the halt?

Hi Gordon, Lowtide, Tintin

It could be the Cambay news.

IF it is relating to the remaining 51.5% then one would need to look at the current cash position shown in the balance sheet. I note the previous 48.5% acquisition was mostly satisfied in the form of shares. IF this RNS is about the remaining 51.5% and the Seller wishes to have the full consideration in the form if cash only then, subject to checking the balance sheet, the question is how is the company going to pay for this.

First time posting here but have been following with intetest.

I am not sure if people are overlooking one point here as no one seems to have mentioned and that is - as per previous RNS the company acquired 48.5 % interest in PEL licenses. In that RNS, it was mentioned that " The was in discussions with the remaining holders in the License to further increase its participation interest in PEL".

I may be wrong but I believe its the acquisition of the remaining 51.5 % interest in PEL that today's RNS is all about.

Bhargav

This is the way I see ( for my own planning) the implied values BASED SOLELY on the expenditure by Newmont. Obviously I would want the market values to be significantly higher than implied values below once the drill results are built in:

Currently, the total shares in issue are as follows:

Total 150m shares
Newmont 29.8 m shares (19.9%)
Others 120.2m shares (80.1%)

NM will initially pay us $2m plus spend $10m for additional 31% increase in their stake.

So $12m represents 31% additional stake in Omi.
This gives implied gross 100% value to be approx $40m.

The revised shareholdings will be:

Total 254m shares
NM 134m shares (51%)
Others 120m shares (49%)

The implied gross value of $40m ÷ 254m shares will give us an implied value of around 16 cents or 13p.

Now take take the next level of expenditure. NM will pay us a further $2m plus spend $20m in return for increasing their stake from 51% to 65%.

i.e. they are giving away $22m for an additional 14% increase in their shareholding. Therefore the gross 100 % value becomes $157m.

The revised shareholdings will be:

Total 343m shares
NM 223m shares (65%)
Other 120m shares (35%)

The revised implied gross value of $157m ÷ 343m shares would give us an implied value of 46 cents or 39p.

Now, these are just implied values based on what NM are going to spend and obviously does not take into account any drill results.

Please do your own research and do not take the above as advice of any nature.

Hi Bhargav
Precisely.
What one needs to realise is the amount Newmont are going to pay us and spend on the project leading upto the possible JV (if we are not already bought out by then ) and beyond.

Newmont are going to pay Omi 2m and spend 10m on the project in 2022 in return for additional 31% shareholding (increasing their stake to 51% ) followed by a payment to Omi of a further 2m and spend on the project of 20m in return for additional 14% shareholding taking their stake to 65%.

The point in my own view that I understand is that what would be the implied market value based solely on these expenditure sums totalling 34m if Omi had to earn before it could spend.

Based on my own calculations I can understand, from my own perspective, why I feel Omi could be vastly undervalued and the reason why I am in for a long haul.

Please do your own research.

Posters on ADVFN say they have sold out. So why are they not walking away - they still keep posting

Gold forecast to hit 1600

The gold price has shifted upwards due to actions by the Fed. The share price of mining companies always move by a greater extent than the movement of the price in gold. If you look at all the various mining companies including Barrick, Newcrest etc, their share price too have increased between 20 to 30 per cent recently

I guess to have internal approvals, the farminee could be a very large player

I will keep loading up at these prices

Thanks Elgor for posting. Can see Omi following Continental footsteps in my opinion

A superb article yesterday in motley fool on Continental Gold. I have lost the link but if someone can find that and post here please.

Hi Bhargav

This is just the beginning. Further news will come through

Hi Golden

Many thanks for posting the video. A good lesson for those looking at SP only

Hi 987

My thinking here was Newmont have no longer the pressure from the failed Barrick hostile bid plus the Goldcorp acquisition is I believe targeted for completion for end of this month (unless this has fallen behind). Both of these must have come in the way for Omi to remain silent for such a long time - it simply wasn't in their hands but I believe they will now have breathing space to agree Omi plans.

I believe there is great potential here.

I have been analysing the slide on page 10 of Omi presentation. To me this gives a good idea of the growth potential (from APTA).

(Bear in mind APTA is 2km long and Omi has more than 200 square km of land area)

APTA has potential to grow both to the North and the South where the other two targets are shown on the slide on either side of APTA. If the results are positive, this 2km of APTA could extend to become a very long strike length corridor of approximately 7 km to 8km and if the other two targets also extend outwards then the strike length could possibly get even longer. To put this into perspective, the CEO of Greatland gold described, in the video yesterday on Proactive news, the Rio Tinto find in western Australia as "a very impressive intercept" and " a very long intercept" that was some 700 metres long.

The above Omi proect is not including the potential of La Cejita which from slide 10 appears to be of a magnitude of some 8 to 9 times that of the current size of APTA.

No wonder Newmont beat all the other bidders to get in here. News I believe will come early next month and I certainly am staying put.

Sad indeed. Must be hard on the entire team at Omi

Newmont and Barrick enter into Nevada JV 39:61. And, Barricks drops its bid for Newmont.

Now Newmont can seal its deal with Goldcorp this month and we can get our news hopefully early April.

17% up on google?

Hi Ageos
Thank you for posting this very useful summary