Vancouver, British Columbia – East Asia Minerals Corporation (the “Company”) (EAS:TSX.V, EAIAF:OTCBB) is pleased to announce that it has entered into a loan facility agreement providing up to $23 million in working capital for the final development stages of the Company’s Sangihe Project.
CEO Terry Filbert said: “The proposed loan facility agreement will enable us to begin exploration and infill drilling of the Binebase/Bawone corridor to increase both resources and reserves, as well as for general working capital.”
Loan Facility Terms
The Company has entered into a secured loan facility agreement with a Middle East based private fund, for the provision of up $23 million in working capital for the Company’s Sangihe Project and to move other projects forward as well. The arrangements under the loan provide for a term expiring 22 years from the date of one or more advances under the loan, including a two (2) year grace period from any principal and interest payments. Interest shall accrue at 4% on ninety-one percent of any advances comprising the principal of the loan. The loan shall be secured on the shares the Company holds in its wholly owned subsidiary that in turn wholly owns the Company’s 70% interest in the Sangihe Project through its Indonesian subsidiary.
The Sangihe gold-silver-copper project is located on the island of Sangihe off the northern coast of Sulawesi and has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated ounces and 105,000 inferred ounces of gold. The Company’s 70 percent interest in the Sangihe mineral tenement contract of work is held through PT Tambang Mas Sangihe(PT TMS). The remaining 30 percent interest in PT TMS is held by three unaffiliated Indonesian corporations. The term of the Sangihe contract of work agreement is for 30 years upon commencement of the production phase of the project.
EAST ASIA MINERALS CORPORATION
On behalf of the Board of Directors of East Asia Minerals,
Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this News Release, which are not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company’s performance or events as of the date hereof. These statements reflect management’s current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.