OMAI could be up for grabs
- company officials

by Gitanjali Singh
Stabroek News
January 8, 2000


OMAI Gold Mines Limited (OMGL) is up for "grabs" as part of the attempt by its majority shareholder, Cambior Inc., to deleverage itself, and interest has been expressed by overseas investors. Both Norman McLean, OMGL's Human Resources Director and Robert LaValliere, Cambior's Manager, Investor Relations, confirmed directly and indirectly that the local mine was among Cambior's assets being considered for sale. But they were very guarded in specifying Omai, contending that the assets of Cambior included the Langlois, Mouska, Bouchard-Hebert and the Doyon mines overseas.

However, McLean did say, "Omai is up for grabs because of the arrangements with the bank [Cambior's financiers]." LaValliere referred to the December 23 press release by Cambior in which it was announced that Bunting Warburg Dillon Read Inc. had been retained to assist Cambior to deleverage itself and to maximise shareholders value "through substantial asset sales or corporate transactions."

He stressed that thedecisionaboutwhich properties would actually be put on the market would depend on Bunting Warburg's recommendation as to what would be in the best interest of Cambior.

He said investors could make offers for one or more of Cambior's properties but as of now there had been no offers, although interest had been shown. He would not say whether interest had been expressed specifically in the Omai mine, which was the largest in South America.

However, he indicated that in the coming months it would become clearer which properties would be sold. Cambior's President, Louis Gignac was here recently for an OMGL board meeting, but McLean was not in a position to say whether the possible sale of OMGL had been discussed.

Asked whether Cambior would need to clear the sale of its 65 per cent shareholding in OMGL to another investor, McLean said he would believe so. However, he could not say whether any informal approaches might have been made to the government as yet and expressed the view that it might be too early for this.

Both McLean and LaValliere confirmed that interest had been expressed in Cambior's assets of which OMGL was a part and did not rule out interest in Omai. The two officials said that the process would take a while and McLean noted that everyone would like to know what Omai's future in this whole scenario was.

However, he said that there was a possibility that Cambior might be able to float the money or that gold prices might fall further. Nevertheless, he indicated that if OMGL was taken, it would be a transfer of shares operation as it was a separate company.

The government is a five per cent shareholder in Omai while Golden Star Resources holds the other 30 per cent of the shares.

Cambior has entered into a restructuring agreement with its creditors and hedge providers to allow for its US$212 million loan obligation to extend and mature to the end of this year. It began to experience financial difficulties around mid last year when it announced that it had forward sold gold at prices lower than the current market prices.

Since then, the firm has granted floating charges on its assets including the Mouska, Bouchard-Hebert and Langlois mines. There was a previous charge created over the Doyon Mine and it was stated in the December release that other charges may be created in due course.


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