Oman's government granted Omagine LLC, a 60% subsidiary of the US-based Omagine Inc., selected rights over 1m sqm of beachfront land in Seeb.
Omagine LLC will use the land to develop its $2.5bn Omagine project, a mixed-use tourism and real estgate development, to be designed, developed, and operated by the US firm's subsidiary.
Omagine LLC signed a usufruct agreement with the Omani government on Wednesday, July 1 2015, which granted the company certain rights over the land, including the right to sell the land on freehold basis.
"On July 2, 2015, all of the necessary and required government formalities, stamps and registration procedures were completed by the Ministry of Housing of Oman, and Omagine LLC is now in possession of a signed, stamped and officially registered usufruct agreement which legally evidences Omagine LLC's ownership of the usufruct rights over the land constituting the Omagine Site," Frank Drohan, chairman of Omagine Inc, said in a filing to the US Securities and Exchange Commission (SEC), dated 2 July, 2015.
"Early next week, after consultation with its accounting consultants and auditors, the Company [Omagine LLC] expects to inform its shareholders of the results of the recent land and usufruct rights valuations that LLC had previously commissioned," Drohan added in the statement.
The term of the usufruct agreement is 50 years (with five years free rent).