East Asia Provides an Update on Indonesian Projects
East Asia Provides an Update on Indonesian Projects
January 19, 2017 Symbol: EAS
The Company wishes to provide the following update as to the status of its Sangihe and
Miwah projects located in, Indonesia.
Sangihe 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 compliant Inferred
Mineral Resource. The interest in the Sangihe mineral tenement Contract of Work is
held through PT Tambang Mas Sangihe (“PTTMS”) (the “Sangihe CoW”). The
remaining 30% interest in PTTMS is held by three Indonesian corporations. The term of
Sangihe CoW agreement is for a period until 2027, and can be extended for two
additional 10 year periods.
During the year ended December 31, 2016, the Company completed some of the
necessary requirements for maintaining PTTMS, but the Company was unable to
complete funding needed to make certain annual payments, including the land rent and
property taxes, on this project. PTTMS has applied for an extension of time to make the
annual payments and complete certain reports that are due under the terms of the Sangihe
CoW agreement. Due to missing these payments, the Company is uncertain of the legal
status of the Sangihe CoW under the laws and regulations of Indonesia, and is not able to
provide any confirmation the status of the Sangihe CoW.
Miwah Project
The Miwah Project is located in the Province of Aceh. The Company holds an 85%
indirect equity interest in the Miwah project. The Miwah project lies within three
contiguous Izin Usaha Pertambangan (“IUP”), also referred to as mining business
licenses, which the Company is party to through cooperation agreements with its
partners. The IUPs were issued in November 2009 by the Regent of Pidie Regency of the
Province of Aceh, Indonesia.
The IUP itself does not grant its holder the complete set of permits or licences required to
carry out mining activity. In order to conduct mining activity, the IUP holder is
separately responsible for applying and recei ving any other permits required, which may
include, but are not limited to, forestry access permits and land owner consents.
,
The Company was unable to fund certain annual payments, including the deadrents,
property taxes and others, and perform the required activities on the Miwah Project due
to Indonesian governmental forestry related restrictions. Accordingly, the Company is
uncertain of the legal status of these IUPs under the laws and regulations of Indonesia
and is not able to provide any confirmation of the status of the Miwah IUPs and the
Company’s ownership interest.
Writedown of Indonesian Projects
During the years ended August 31, 2014 and 2015, the Company wrote off its Indonesian
exploration and evaluation assets (Miwah a nd Sangihe) based on identified indicators of
impairment that result from a downturn in the mining industry, in particular,
unfavourable changes in the property or proj ect economics, inability to raise financing
necessary to continue exploration or devel op the project, significa nt decreases in the
current or expected future prices of minera l resources, inability to access the site and
regulatory and environmental restrictions on exploration and development.
EAST ASIA MINERALS CORPORATION
Per: “Edward Rochette”
Edward Rochette, Director
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the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of
this release.