Good morning to you all. Following in the footsteps of the Dubai real estate success story, Omagine, Inc. (OTCBB: OMAG) announced today that the Government of Oman approved commercial terms for the Omagine Project – a $1.5 billion + real estate project in Oman. View the press release here.
The project has been in the works for a while and has received plenty of attention from the media during that time. However, closing now appears imminent, which would be a big coup for Omagine and great for small-cap / micro-caps everywhere. I say imminent based on the comments of Omagine President, Frank Drohan, from today’s press release:
“Our attorneys are now concluding the Development Agreement with the Ministry of Tourism and we and the Government look forward to signing it within the next several weeks.â€
HIGHLIGHTS
Here are some of the highlights of the project:
- As presently planned, the Omagine Project will be located on approximately one million square meters of beachfront land facing the Gulf of Oman just west Muscat — the capital city of the Sultanate of Oman and near Muscat International Airport.
- includes several hundred thousand square meters of residential property that will be developed for sale and significant commercial, retail and hospitality elements are also included.
- The Omagine Project is expected to take between 4 to 5 years to complete. The projected financial model presently predicts an internal rate of return (“IRR”) for the Omagine Project of 20%
- Net positive cash flow in excess of USD $600 million (the “Projected Cash Flow”) over the five year period immediately subsequent to the signing of the Development Agreement. As of the date hereof, the “net-present-value” of such Projected Cash Flow is projected to be approximately USD $300 million.
- Omagine owns 58% of the project.
- Consolidated Contractors Company Oman LLC (CCC), which is the local Omani subsidiary of Consolidated Contractors Group S.A.L., will be responsible for all construction activities. Consolidated Contractors Group SAL (CCG) is a worldwide organization with $5 billion in revenue and employs approximately 125,000 people.
- An investment arm of CCG will invest $US$49,426,000 in exchange for a 12% equity stake.
Omagine closed at $US .90 on Friday and is now trading at $1.10 as of 11:30 AM. At that price, Omagine has a market cap of ~ $US 50,000,000.
DISCLOSURE: Omagine is an AGORACOM client, so assume we are completely conflicted and conduct your own due dilgence.
Regards,
George