East Asia Minerals Announces a $4 Million Financing with a $2 Million Lead Order from Palisades Goldcorp to Advance Sangihe GOLD Project to Production
News Release
East Asia Minerals Corporation
Corporate Office:
9
th
Floor – 1021 West Hastings St.
Vancouver, BC V6E 0C3
T +1-604-684-2183 F +1-604-357-1987 www.eastasiaminerals.com
September 10, 2020 Trading Symbol: “EAS: TSX.V | EAIAF:US”
EAST ASIA MINERALS ANNOUNCES A $4 MILLION FINANCING WITH A $2
MILLION LEAD ORDER FROM PALISADES GOLDCORP TO ADVANCE
SANGIHE GOLD PROJECT TO PRODUCTION
East Asia Minerals Corporation (“EAMC” or the “Company”) is pleased to announce a $4
million private placement (the "Private Placement") with a $2 million lead order from
Palisades Goldcorp. The private placement will consist of 26,666,666 units priced at $0.15
per unit (the “Unit”). Each unit will be comprised of one common share in the capital of
the Company (a "Share") and one common share purchase warrant (a "Warrant"). Each
Warrant shall be exercisable into one Share at an exercise price of $0.25 for 3 years from
the date such Warrant is issued.
The first tranche of the financing is expected to close on or before September 17, 2020 with
subsequent tranche closings following shortly thereafter.
Mr. Terry Filbert, CEO of EAMC, adds, “ With the granting of the AMDAL environment
permits, our upcoming operation license application, and the funds raised f rom this private
placement, East Asia is targeting 2021 for production start-up at the Sangihe gold project.
With the start of production, EAMC will be able to showcase the strong cashflow ability of
the Sangihe asset and our team’s ability to execute. We’re encouraged by the support of our
long-term shareholders who have expressed interest in a sizable allocation of this financing
and encourage interested investors to contact EAMC or your financial advisor for an
allocation request.”
The use of proceeds will be going towards Sangihe gold project, construction of a 100,000
tonnes heap leach operation, engineering, equipment purchases, consulting, and related
professional fees of a start up mine operation. Subject to the final environmental permit being
issued as well the Indonesian Government Operations Production License being granted, the
Company intends to proceed to production without the benefit of first establishing mineral reserves
supported by a feasibility study. The Company cautions readers that t he 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 such as 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 p rice 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.
The Private Placement is subject to certain conditions including, but not limited to, the
receipt of all necessary regulatory approvals, including acceptance of the TSX Venture
Exchange.
This news release shall not constitute an offer to sell or the solicitation of an offer to buy
nor shall there be any sale of the securities in any state in which such offer, solicitation or
sale would be unlawful. The securities have not been registered under the United States
Securities Act of 1933, as amended, and may not be offered or sold in the Unite d States
absent registration or an applicable exemption from the registration requirements.
The Company also announces that it has granted an aggregate amount of 3,000,000 stock
options to an officer, directors, employees and consultants of the company in accordance of
the provisions of the company's stock option plan, subject to approval of the TSX Venture
Exchange. Each option entitles the holder to purchase one common share of the company at
an exercise price of $0.15 for a five-year period.
ABOUT PALISADES GOLDCORP
Palisades Goldcorp is Canada's new resource focused merchant bank. Palisades'
management team has a demonstrated track record of making money and is backed by
many of the industry's most notable financiers. With junior resource equities valued at
generational lows, management believes the sector is on the cusp of a major bull market
move. Palisades is positioning itself with significant stakes in undervalued companies and
assets with the goal of generating superior returns.
ABOUT SANGIHE GOLD PROJECT
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 and 105,000 inferred ounces of Gold as reported in the Company's
"Independent Technical Report on the Mineral Resource Estimates of the Binebase and
Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia" dated May 30, 2017. Only
10% of the gold bearing area has been explored. Readers are cautioned that mineral
resources that are not mineral reserves do not have demonstrated economic viability. The
Company's 70-percent interest in the Sangihe -mineral-tenement contract of work ("C oW")
is held through PT Tambang Mas Sangihe (PTTMS). The remaining 30 -percent interest in
PTTMS is held by three Indonesian corporations. The term of the Sangihe CoW agreement
is for 30 years upon commencement of the production phase of the project.
ABOUT EAST ASIA MINERALS CORPORATION
East Asia Minerals is a dynamic junior gold developer with NI43 -101 gold resources in
Indonesia, one of the leading gold producer countries in the world. EAS plans to advance
and permit Sangihe in near term and raise funds for a heap leach operation. East Asia has a
team of mining professionals in North America and locally in Indonesia with extensive
experience in starting and operating small -scale gold and coal asset s. With the team in
place, East Asia plans to raise capit al and market awareness to develop it’s highly
prospective project portfolio.
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.
EAST ASIA MINERALS CORPORATION
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
+1-206-890-8285
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
+1-647-725-3888 ext 702
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 facto rs, 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.