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As of May 12, 2008, the registrant had outstanding 45,503,879
shares of Common Stock, par value $.001 per share.
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Welcome to Omagine
Journey of Light, Inc. ("JOL"), a wholly owned subsidiary of Omagine, Inc. (OTC-BB: OMAG), has proposed to the Government of Oman (the "Government") the development of a real-estate and tourism project (the "Omagine Project") in Oman. On April 6, 2008 the Ministerial Committee for Tourism met and discussed the Omagine Project and its commercial terms. Management has been informally notified that this committee has approved the commercial terms for the development of the Omagine Project. Approval of such commercial terms by the committee is required before signing a development agreement with the Government ("Development Agreement").
The Omagine Project will be developed by Omagine S.A.O.C. (the "Project Company"), an Omani company presently under formation by the Company and other founder shareholders ("Founder Shareholders"). The three Founder Shareholders are Omagine, Inc., Journey of Light, Inc. and Consolidated Contractors International Company, S.A.L. ("CCIC").
The Omagine Project is planned to be developed on one million square meters (equal to approximately 245 acres) of beachfront land facing the Gulf of Oman (the "Omagine Site") just west of the capital city of Muscat and nearby Muscat International Airport. The Omagine Project is planned to be an integration of cultural, heritage, educational, entertainment and residential components, including: a "high culture" theme park containing seven pearl shaped buildings, each approximately 60 feet in diameter, associated exhibition buildings, a boardwalk; an open air amphitheater and stage; open space green areas; a canal and enclosed harbor area; associated retail shops and restaurants, entertainment venues, boat slips, and docking facilities (collectively, the "Landmark"); two five-star resort hotels; commercial office buildings; shopping and retail establishments integrated with the hotels, and several hundred thousand square meters of residences to be developed for sale. The Government will issue a license to the Project Company designating the Omagine Site as an Integrated Tourism Complex ("ITC") and as such, the Project Company will be allowed to sell residential properties developed on the Omagine Site including the underlying land to any person, any non-Omani persons. Non-Omani persons (such as expatriates living and working in Oman) are forbidden by law to purchase any land outside of an ITC. The Company expects, based on present assumptions which are subject to modification, that the development costs for the entire Omagine Project will be approximately $1.6 billion dollars. Through its ownership interest in Omagine SAOC, the Company plans over time to also be in the property management, hospitality and entertainment businesses.
JOL's attorneys are presently conducting discussions with the Ministry of Tourism of Oman ("MOT") regarding the final wording of the Development Agreement.
In December 2007 JOL signed an agreement (the "CCIC Agreement") with Consolidated Contractors International Company, S.A.L. and with its local Omani company Consolidated Contractors Company Oman, LLC (collectively, "CCC") memorializing the agreement between JOL and CCC regarding, among other things: (i) CCC being the General Contractor for the Omagine Project, (ii) CCC being a minority Founder Shareholder of Omagine SAOC, and (iii) CCC's rapid mobilization and start of construction of the Omagine Project. Consolidated Contractors International Company, S.A. (CCIC), an investment arm of Consolidated Contractors Group SAL, will invest nineteen million ten thousand Omani Rials (equivalent to U.S. $49,426,000) in Omagine SAOC in exchange for a twelve percent (12%) equity stake. CCC is one of the largest building contractors in Oman and the Middle East with worldwide operations, almost $5 billion in annual revenue and over 120,000 employees (6,000 presently in Oman).
The Company recently signed a Memorandum of Understanding with an Omani company ("Newco") comprised of prominent Omani business people pursuant to which Newco will invest approximately $48 million into the Project Company in return for a 30% equity participation. The Company also has, as previously reported, an MOU with Bank Muscat regarding project financing, equity participation and financial advisory services.
The execution and delivery of the definitive legal documents (the "Financial Closing")necessary for the provision of the required construction financing for the Omagine Project ("Construction Financing") will occur on the "Financial Closing Date" and such date is estimated to be approximately three to six months after the Development Agreement with the Government becomes effective (the "Effective Date"). Although CCIC's agreement with the Company contemplates its equity contribution to the Project Company occurring on the Financial Closing Date, Newco's agreement with the Company contemplates its equity contribution to the Project Company occurring in monthly installments between the Effective Date and the Financial Closing Date.
As of the date hereof therefore, the Project Company has arranged (i) approximately $99 million of equity capital for itself, (ii) the financial capacity (from Newco's investment) to begin development of the Omagine Project almost immediately after the Effective Date without having to wait for the Financial Closing, and (iii) an agreement with Oman's largest financial institution to arrange the Construction Financing and, although it is unlikely to be required, provide additional equity capital to the Project Company if it is required.
As presently contemplated Omagine SAOC will, upon corporate formation, be owned eighty-eight (88%) percent by JOL and ten percent (10%) by Omagine, Inc., JOL's parent company, (collectively, the "Company Equity") and two percent (2%) by CCIC. The Company Equity of 98% is expected to be reduced subsequent to the signing of the Development Agreement by up to a maximum of 40% (to no less than 58%) depending upon the finalization of shareholder agreements between the Project Company and each of CCIC and Newco. The Company Equity will remain the majority equity stake in the Project Company and the Government will not own any equity of the Project Company.
In order to move into the actual development stage of the Omagine Project, the Founder Shareholders and the Government must sign the Development Agreement. Subsequent to the signing of the Development Agreement, the Omagine Site's value will be definitively determined by a qualified independent real-estate appraiser and such appraisal will be used by Bank Muscat to optimize the Project Company's capital structure and in its internal financing discussions and in its discussions with other financial institutions and investors.
Oman Government Approves Commercial Terms for Omagine Project
Monday May 12, 9:14 am ET
NEW YORK, May 12, 2008 (PRIME NEWSWIRE) -- Omagine, Inc. (OTC BB:OMAG.OB - News), (the ``Company') today announced it received an official letter from the Government of Oman (the ``Government') formally approving the terms by which the Omagine Project will be developed (the ``Approval Letter').
The Company is required to formally notify the Government in writing by May 30, 2008 of its approval of the Approval Letter and furnish the Government with various confirmations relating to shareholders of the Project Company and elements of the Project.
The Company's president, Frank J. Drohan, said: ``We are gratified by this final approval and pleased with the results. Our carefully chosen strategic investor partners including CCC, Bank Muscat and local Omani business persons are committed to delivering this signature project for the people of the Sultanate of Oman. 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.'
The Omagine Project is an elegant and sophisticated blending of entertainment, hospitality, retail and residential elements, with heritage, educational and cultural components.
Located on over 240 acres of prime beach front property just minutes from Muscat International Airport and downtown Muscat, Omagine's jewel-like architecture will mark the place and set new standards. The Project includes retail, hotel and commercial office elements and several hundred thousand square meters of distinctive residences in an incomparable location.
``When completed in four or five years, Omagine will be the destination in Oman for tourists, business travelers and the local population and will play a major role in the Sultanate's burgeoning tourism sector,' commented Drohan.
The Company is the majority shareholder of the Project Company which will own and develop the Omagine Project.
About Omagine, Inc.
Omagine, Inc. is primarily involved in the real-estate development, entertainment and hospitality industries in the Middle East and North Africa. Through its wholly owned subsidiary Journey of Light, Inc., the Company will design, develop, build, own and operate the Company's planned $1.5 billion plus tourism project in the Sultanate of Oman.
The Omagine, Inc. logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=2345
About the Omagine Project
The Company's planned Omagine Project is an integration of cultural, heritage, educational, entertainment and residential components. 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.
The Omagine Project also includes several hundred thousand square meters of residential property that will be developed for sale. Significant commercial, retail and hospitality elements are also included. The Omagine Project is expected to take between 4 to 5 years to complete.
For further details on the Omagine Project: http://www.omagine.com.
Investors are encouraged to visit Omagine's Investor Relations Hub at: http://www.agoracom.com/IR/Omagine or contact OMAG@agoracom.com where they may join the investor e-mail list and/or request receipt of all future press releases and updates in real time.
AGORACOM Investor Relations