East Africa Metals closes a $500,000 Private Placement
777 Dunsmuir Street
PO Box 11108, Vancouver, BC, Canada V6E 3P3
Tel: 604.488.0822
Web: www.eastafricametals.com
NEWS RELEASE
East Africa Metals closes a $500,000 Private Placement
NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR RELEASE, PUBLICATION,
DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE
UNITED STATES
Vancouver, British Columbia – November 6, 2020 – East Africa Metals Inc. (TSX-V: EAM - “East Africa”
or the “Company”) is pleased to announce that it has closed the private placement financing of
3,846,500 units (the "Units") at a price of $0.13 per Unit for gross proceeds of $500,045, as previously
announced on November 3, 2020. Each Unit consists of one common share of the Company and one
non-transferable common share purchase warrant (a "Warrant"). Each whole Warrant will entitle the
holder thereof to purchase one common share at an exercise price of $0.35 for a period of 24 months
from the date of closing. There was one placee involved in the placement.
The Company intends to use the net proceeds from the financing for general working capital.
All of the securities issued in connection with this placement are subject to resale restrictions, which
expire four months and one day from closing. The financing remains subject to certain conditions
including, but not limited to, receipt of approval from the TSX Venture Exchange.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as
amended (the "U.S. Securities Act") or any U.S. state securities laws, and may not be offered or sold in
the United States or to, or for the account or benefit of, United States persons absent registration or any
applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S.
state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer
to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About East Africa Metals
The Company’s principal assets include both the 70% owned Harvest polymetallic VMS exploration Project and the 100%
owned Magambazi Mine in the Tanga region of Tanzania. In addition, the Company owns 30% Net Profits Interest in the
Adyabo and Da Tambuk mines in the Tigray region of Ethiopia. The Mato Bula and Da Tambuk mines are four-kilometres
apart and will be developed simultaneously. The development of the mining operations is scheduled to begin during the
fourth quarter of 2020.
East Africa retains exploration rights on areas of the properties outside the Mato Bula, Da Tambuk and Terakimti mining
licenses in all Ethiopian projects and anticipates the commencement of exploration drilling to test priority targets during
the last quarter of calendar 2020.
EAM has invested USD$66.8M in African exploration since 2005 and identified a total of 2.8 million ounces of gold
representing an average discovery cost per ounce of US$24.
The current Global Project Resources discovered by EAM include:
Project Resources (Au + Au eqv Metal ounces)
Project Category
Au + Aueqv
ounces
Adyabo Project Indicated 446,000
Inferred 551,000
Harvest Project Indicated 469,000
Inferred 426,000
Handeni Project Indicated 721,000
Inferred 292,000
*See East Africa Metals Project Resource Table attached for additional
detail
Andrew Lee Smith, P.Geo., C.E.O., a Qualified Person under the definitions of National Instrument 43-
101, has reviewed and approved the technical contents of this news release.
More information on the Company can be viewed at the Company’s website:
www.eastafricametals.com.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO
For further information contact:
Nick Watters, Business Development
Telephone +1 (604) 488-0822
Email [email protected]
Website www.eastafricametals.com
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation, including information with
respect to the terms of the letter agreement, the timing and amounts of payments, the expected completion dates for due diligence and approvals, the structure
of the proposed transaction and the listing of the Developer’s common shares on the London Stock Exchange’s AIM. Generally, forward-looking information
can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project",
"budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions. Forward-looking information is
based on reasonable assumptions that have been made by East Africa as at the date of such information and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of East Africa to be materially different from
those expressed or implied by such forward-looking information, including but not limited to risks related to: the negotiation of a definitive agreement
reflecting the anticipated structure and timing outlined herein; delays with respect to required payments and regulatory approvals; results of the due diligence
review; early exploration; the ability of East Africa to identify any other corporate opportunities for the Company; mineral exploration and development;
metal and mineral prices; availability of capital; accuracy of East Africa's projections and estimates, including the initial mineral resource for the Adyabo,
Harvest and Magambazi Projects; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual
results of current exploration activities; government regulation; political or economic developments; foreign taxation risks; environmental risks; insurance
risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of
strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes
in project parameters as plans continue to be refined, as well as those risk factors set out in East Africa’s management’s discussion and analysis for the three
months ended March 31, 2015, East Africa’s listing application dated July 8, 2013 and Tigray Resources Inc. Management Information Circular dated March
28, 2014. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the terms of the definitive
agreement reflecting the anticipated structure and timing outlined herein; completion of satisfactory due diligence; receipt of all required payments and
regulatory approval; the price of gold, silver, copper and zinc; the demand for gold, silver, copper and zinc; the ability to carry on exploration and
development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-
efficient manner; the ability to operate in a safe, efficient and effective manner; and the regulatory framework regarding environmental matters, and such
other assumptions and factors as set out herein. Although East Africa has attempted to identify important factors that could cause actual results to differ
materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated
in such information. The Company does not update or revise forward looking information even if new information becomes available unless legislation
requires the Company do so. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance
with applicable securities laws.
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.