Last Updated on Saturday, 26 December 2015, 21:00 by GxMedia
Work at the gold-bearing Omai area is expected to begin later this month, Mahdia Gold Corporation announced on Monday.
The company said its joint venture partner has already begun moving mining equipment from Georgetown, Guyana to Omai shortly after the beginning of 2014.
“The equipment is currently being assembled and is scheduled to be operational this month. There is expected to be a short period wherein the machinery goes through its initial break-in period and operators familiarize themselves with the operating methods and new equipment,” the company said in a statement.
Mahdia Gold gets its name from a popular resource rich mining town located in central Guyana. Historically the central Guyanese region was made popular by the Omai gold mine. This mine produced approximately 4,000,000 ounces of gold from two open pits. Having identified the potential of this region, Mahdia Gold Corp. has acquired three compelling gold bearing concessions, namely, Omai, Tiger River and White Creek.
The company’s vision is to be an aggregator of world class gold properties in the country of Guyana. This vision includes maximizing shareholder value and Mahdia Gold Corp. being the premier destination for investors looking to invest in the precious commodity known as gold.
Mahdia Gold Corporation also announced the appointment of Ray Irwin, P.Geo, as Vice President of Exploration and Development, and Fred Mason as Vice President of Operations and Chief Operating Officer, for the Company’s Omai Project in Guyana, South America.
Mr. Irwin and Mr. Mason bring a wealth of experience and operational acumen to the Omai Project. With extensive experience in mining, both individuals have worked throughout the Americas over the past 35 years successfully discovering gold and copper ore bodies; permitting, engineering and building mining operations; and, managing profitable operations from Chile to Canada.
“Mahdia is finally beginning its journey to becoming a major mining operation and I couldn’t be more pleased than to have Ray and Fred on the team,” said Andre Douchane, President and Chief Executive Officer. “Given the recent market attitude toward small start-up resource companies, I am proud of the advancements we have made. Management and insiders have continued to believe in the merit of the Omai Project and have been the major source of the recent financings that have kept the company advancing operations in Guyana.”
Mahdia sad it was pleased to announce that it has raised $253,000 of 15% convertible unsecured subordinated debentures pursuant to the offering that it launched in December 2013. These debentures mature on December 31, 2015 (the “maturity date”), unless earlier redeemed (such early redemption available after December 31, 2014), and bear interest, accruing, calculated and payable semi-annually in arrears on June 30 and December 31 of each year. The debentures are convertible at the holder’s option into common shares of the Company, at any time prior to the close of business on the earlier of the business day immediately preceding the maturity date and the business day immediately preceding the date fixed for redemption of the debentures, at a conversion price of C$0.06 per common share, being a ratio of approximately 16,666 common shares per C$1,000 principal amount of debentures.
Mahdia also announces that it plans to enter into shares-for-debt agreements and issue common shares at the current market price to settle approximately $1.8 million of debt issued in 2013 (including accrued interest) consisting of (i) approximately $1.5 million aggregate principal amount of convertible debentures having a conversion price of $0.20, and (ii) $115,000 aggregate principal amount of promissory notes. Mahdia is also seeking to raise up to $1 million in a new private placement equity financing, of which insiders and management intend to subscribe for $300,000, to ensure that the Company is well financed during the start-up phase of the Joint Venture placer operation. Both the debt conversions and the new equity financing will be based on the closing price on January 14, 2014 of $0.065 per share.
Mahdia is a Canadian-based gold exploration company with active gold prospects in Guyana, South America.