Vancouver, British Columbia – East Asia Minerals Corporation (the “Company”) (EAS:TSX.V, EAIAF:OTCBB) is pleased to provide shareholders with an update on the $17.5 Million (CAD) credit facility structure in cooperation with Montreal based Isatis Capital Group Inc (ISATIS).
Isatis has successfully completed the due diligence process for the $17.5 million credit facility agreement which was announced at the beginning of June. The due diligence included a site visit to the Sangihe mine, accompanied by East Asia Minerals CEO, Mr. Terry Filbert. All lending requirements have been successfully met.
CEO Terry Filbert said: “This funding solution enables East Asia Minerals to move forward aggressively on plans to begin production on the Sangihe property to generate revenue and positive cash flow for the company. This credit facility will also 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. This will put the company on a fast track to increase shareholder value in a non-dilutive manner.” The Company cautions readers that the 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.
Credit Facility Terms
East Asia Minerals Corp. has entered into an arrangement with Isatis Capital Group of Montreal to secure a credit facility loan for up to $17.5-million ($13.5-million (U.S.).
The contemplated credit facility will have a maturity of 48 months, with East Asia Minerals being able to terminate the loan at 36 months with a 2 percent penalty on remaining money owed, and will be secured by a universal deed of hypothec over the Sangihe project in Indonesia. The loan will have an interest rate of 8 percent and will consist of interest-only payments for the first 18 months of its tenure. The loan, at the discretion of the lender(s) is convertible to 99.9 percent gold bullion as a vehicle of repayment with 12 months advanced notice and contained within a formal off-take agreement.
The Sangihe gold-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. The remaining 30 percent interest in PTTMS 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.