Govt okay given for change of Omai mines shareholder
The government does not have a position on the hostile takeover bid by Aur Resources Inc of Omai Gold Mines Ltd's largest shareholder, Cambior Inc and has given permission for a potential change of shareholder in Omai. Cambior Inc, which holds 65% of Omai, in seeking to deleverage itself has been moving to sell assets including the Omai mine. It has since been faced with a hostile takeover bid from fellow Canadian miner Aur. The company yesterday urged its shareholders to hold on to its shares until it has assessed the bid by Aur, a metal-based company. Omai recently briefed the government on its operational plans for this year and also, according to Prime Minister Sam Hinds, permission was sought and granted for a potential change in shareholders for the firm. He told Stabroek News yesterday that the government was also told at that time that seven firms had expressed an interest in acquiring the Omai mine, including Placer Dome. He was not in a position to say who the others were. Placer Dome, also of Canada, had originally prospected in the Omai mine area but did not proceed to the mining stage. As it relates to the hostile takeover attempt, Hinds said that the government did not have a position, but was concerned about an investor not known to the country. He said it was the government's intention to ensure that the new shareholder, whoever that was, stuck to the agreement entered into with the state and operated within the legal framework. Hilbert Shields, General Manager of Golden Star Resources Limited, said the company has not had any offers for its 30% shareholding in Omai, but if an offer was made, it would be considered. The government owns the other five percent of Omai. Meanwhile, when asked about the arrangement under which Omai pays no corporation taxes, the Prime Minister said that this arrangement would stand until the company wrote off a fixed portion of its investment in returns. However, Hinds noted that with the current trend in gold prices, it could take a long time for the company to start paying corporation taxes and said the possibility existed that the mine life would expire before any such taxes were paid or before the company was able to recoup its investment. He noted that Omai is a low-grade mine and much depends on the price of gold and the cost of production. (GITANJALI SINGH)
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