Vancouver, British Columbia – East Asia Minerals Corporation (the “Company”) (EAS:TSX.V, EAIAF:OTCBB) is pleased to provide shareholders with an update on the Indonesian Feasibility Study (IFS) and the credit facility for up to $15 million (USD)..
The Company has completed and submitted the Indonesian Feasibility Study on the Sangihe project to the Indonesian Ministry of Energy and Mineral Resources (MEMR) and once approved, construction of the mining facilities and infrastructure can begin at the Sangihe Project. The Company anticipates to begin construction before the end of 2018. The IFS is not a feasibility study as defined by the Canadian Institute of Mining, Metallurgy and Petroleum and as required by National Instrument 43-101 (“NI 43-101”) but is required under Indonesian law in order to obtain a license to construct a production facility. The Company cautions readers that the any production decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks outlined in the “forward looking statement” below.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, Chief Geologist of East Asia Minerals Corp. is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
The Company has also successfully completed the legal documents required for the credit facility agreement which was announced at the beginning of June. This milestone is subsequent to completing the due diligence process, which included a site visit to the Sangihe mine last month,
CEO Terry Filbert said: “These two accomplishments put the Company one step closer to generating revenue and positive cash flow. The credit facility 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.”
Credit Facility Terms
The Company has entered into an arrangement with Isatis Capital Group of Montreal to secure a credit facility loan for up to $15 million (USD). The contemplated credit facility will be carried out by a private venture fund (the “Fund”) that will make an offering to US investors (the “Lenders”) of units comprising of promissory convertible notes and common shares of the Fund (the “Units”). The Fund will then loan the Company all proceeds of the Units, and that loan will be secured through a mortgage granted by the Company on the common shares the Company holds in Sangihe Gold Corporation.
The Fund’s Units will be gold loans, convertible to 99.5% gold bullion at LBMA price (minus 5%) after 24 months (following a minimum 12 months advanced notice), at the sole discretion of the Lenders. The Units will mature at 48 months, with 8% annual interest (calculated monthly) on the outstanding principal, and will be redeemable on or before 36 months (but before 48 months) with a 2% penalty.
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.
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.