East Asia Minerals Corp. Announces Shares for Debt Transaction
East Asia Minerals Corp. Announces Shares for Debt Transaction
January 21, 2020 - Vancouver, British Columbia Symbol: EAS
East Asia Minerals Corporation. (the “ Company” or “ EAS”)(TSX-V) reports that its board of directors
has approved the settlement of up to $339,623.66 of debt through the issuance of common shares of the
Company (the “ Debt Settlement ”). Pursuant to the Debt Settlement, the Company would issue up to
6,792,473 common shares of the Company (the “ Shares”) at a deemed price of $0.05 per Share to a
creditor of the Company, being the service company of the Chairman and CEO of the Company (the
“Creditor”)
The issuance of the Shares to the Creditor is subject to the approval of the TSX Venture Exchange and the
shareholders of the Company. All securities issued will be subject to a four month hold period which will
expire on the date that is four months and one day from the date of issue.
The board of directors has also approved the settlement of up to $56,000 of debt through the issuance of
common shares of the Company (the “ Debt Settlement-2 ”). Pursuant to the Debt Settlement-2, the
Company would issue up to 1,120,000 common shares of the Company (the “ Shares-2”) at a deemed
price of $0.05 per Share to certain creditors of the Company, including certain directors and officers (the
“Creditors”)
Further to the news release dated August 21, 2019 and November 5, 2019 whereby the Company advised
that in order to maintain the momentum on completing the Sangihe Production License approval, CEO
Terry Filbert elected to sell shares and loan the net proceeds to the company in order to pay expenses that
are necessary for this process. To this end, this Debt Settlement includes the settlement of debt to Mr.
Filbert. The CEO is committed to the success of the Company and this issue will replace the shares sold
to support the Company in its endeavours.
The issuance of the Shares-2 to the Creditors is subject to the approval of the TSX Venture Exchange. All
securities issued will be subject to a four month hold period which will expire on the date that is four
months and one day from the date of issue.
As certain insiders participated in the Debt Settlement, it is considered to be a “related party transaction”
under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transaction
(“Mi-61-101”). All of the independent directors of the Company, acting in good faith, considered the
transactions and determined that the fair market value of the securities being issued to insiders and the
consideration being paid is reasonable. The Company intends to rely on the exemptions from the
valuation and minority shareholder approval requirements of MI 61-101 contained in section 5.5(a) and
5.7(a).
EAST ASIA MINERALS CORPORATION
Per: “Terry Filbert”
Terry Filbert, Chairman and CEO
For further information, contain Mark Sommer at 1-604-684-2183, [email protected] or visit
the Company’s website at www.eastasiaminerals.com
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.