“During the period between July 19 to August 18 Omagine LLC shareholders met several times both separately and together with the senior management of the Omani bank and as of the date hereof, the Omani bank has agreed in principle to be Omagine LLC’s financial advisor and to provide the debt financing required for the Omagine project to design, develop and construct phase one valued at approximately US$220mn,” US-based Omagine Inc – the majority shareholder in Omagine LLC - said in its quarterly report filed with the US Securities and Exchange Commission on Tuesday.
The company, however, did not disclose the name of the bank.
Omagine Inc said Omagine LLC's shareholders held two meetings on July 19 and August 18 and reviewed and discussed the present status of the project to take it forward. The meetings recommended that the company hire a local Omani bank as its financial advisor and lender.
The foregoing arrangement with the Omani bank is subject to its final due diligence and the execution of an agreement with Omagine LLC, the company said. But the Omani bank, Omagine Inc said, has indicated to the shareholders that, barring any unknown impediment (of which neither management nor the Omani bank are aware), it will deliver a robust term sheet specifying the debt financing and advisory services to Omagine LLC on or before September 4, 2016.
Plans for phase one of the Omagine project - which is presently budgeted at approximately US$220mn - comprise the design and development of one hotel, 250 residences, and one pearl building and associated enabling works and infrastructure within the site, Omagine Inc said.
It said debt financing for phase one is expected to be supplied by the Omani bank and not be syndicated. The Omani bank may, depending upon future circumstances, be Omagine LLC's financial advisor for follow-on phases or for the entire project, the company said. “As such the financial advisor will arrange the syndicated bank financing for the numbered sections to be constructed subsequent to phase one.”
Omagine Inc further said that it is presently expected that a definitive agreement between Omagine LLC and the Omani bank with respect to phase one will be executed with the next three weeks, but added, “No assurance, however, can be given that any such agreement will be signed until it is actually signed by the parties.”
Notwithstanding the foregoing likely solution, Omagine Inc added the management of Omagine LLC is continuing discussions with other interested investors and contractors in China, Europe and the US.