East Africa Metals engages with JinJiu for the development of the Magambazi/Handeni mining project in Tanzania
777 Dunsmuir Street, 17th Floor
PO Box 48658, Station Bentall Centre
Vancouver, BC, Canada V7X 1A3
Tel: 604.488.0822
Toll Free: 866.488.0822
Web: www.eastafricametals.com
NEWS RELEASE
East Africa Metals engages with JinJiu for the development of the
Magambazi/Handeni mining project in Tanzania
Vancouver, British Columbia – July 2 6 , 2024 East Africa Metals (TSX - V: EAM, "East Africa
Metals " or the "Company") is pleased to announce the Company is currently working to
develop a Memorandum of Understanding (MOU) with JinJiu Hong Kong International
Investment Ltd. ("JinJiu") for the development of the Magambazi mining project in Tanzania.
In October 2020, t he Company signed a Share Purc hase Agreement and Gold Purchase
Agreement with a Tanzanian private company, PMM Mining Company Limited (“PMM”) to
develop the Magambazi mining project. In December 2022 due to PMM’s lack of performance,
non - compliance with the terms and conditions of the Mining License Agreement and a litany
of breaches to PMM’s agreements with the Company, the Tanzanian Ministry of Mines
suspended PMM’s operations at the project site and the renewal of the mining licenses . Since
that time EAM ’s management has been engaged with the Tanzanian government and PMM
to resolve issues inhibiting the development of commercial mining operations at Magambazi.
In July 2024, the Minister of Mines announced formal action would be taken to intervene to
resolve the issues, recognizing the government’s obligations to participate based on the
government mediation that resulted in EAM’s partnership with PMM.
Following meetings with EAM management and the Minister of Mines on June 20, 2024, the
Minister called for a meeting of all parties to discuss the non - compliance of mining operations
at Magambazi and the significant breaches to PMM’s agreement s with the Company for the
acquisition and development of the project.
At the conclusion of that meeting , the Minister announced the government would intervene to
mediate a resolution of the issues to allow the development of the project to move forward. To
that end, a Ministerial Hearing was held from July 10 - 13 , 2024 to determine the best way
forward. This Hearing included inspection of the site by government representative s of the
Ministry of Mines.
The formal directives of the Ministry based on the results of the Hearings are pending but the
Hearings concluded with the government foreshadowing a request for the parties to develop
and present a “rescue plan” for the project.
EAM has engaged with JinJiu to develop an MOU in anticipation of meeting the Ministry’s
request to present a rescue plan for the project .
The terms of the proposed MOU are based on a previous MOU drafted in January 2023 after
the suspension of PMM’s mining operations. In this expired MOU, JinJiu agreed to acquire a
100% interest in the project through the purchase of shares of Canaco Tanzania Limited
(“CTL”) held by EAM for a total consideration of US $2,000,000. EAM has invested
approximately US $60,000,000 in exploration, resource establishment and mine planning.
Additionally, JinJiu is committed to producing a minimum of 10,000 ounces of gold in the first
year increasing to at least 40,000 ounces annually from the fourth year onwards. EAM will
receive 30% of the gold produced from the project at the production cost plus 15% pursuant
to a Gold Purchase Agreement to be signed by the parties . JinJiu will be responsible for all
investment funds required for mine development and production and CTL ’ s operating costs
until the project becomes self - sustaining.
The terms of any transaction between EAM and JinJiu will be subject to approval by the
Tanzanian Mining Commission and other relevant government authorities.
Andrew Lee Smith, CEO of East Africa Metals, commented, "We are excited by the possibility
to partner with JinJiu on the development of commercial mining operations at the Magambazi
project. The proposed MOU represents a significant step forward in unlocki ng the value of our
Tanzanian assets and establishing commercial production at Magambazi . JinJiu's commitment
to invest and develop the project aligns with our strategic objectives, and we look forward to
working together to realize the full potential of t he Magambazi mining project for all
stakeholders."
About East Africa Metals
The Company's principal assets include a 30% Net Profits Interest in the Mato Bula and Da
Tambuk mines (collectively "Adyabo Property") and a 70% project interest in the Harvest
polymetallic VMS Exploration Project in the Tigray Region of Ethiopia . In addition, the Company
has a 30% Net Streaming Interest in the Magambazi Mine in the Tanga Region of Tanzania.
EAM has invested US$66.8M in African exploration since 2005 and has identified a total of 2.8
million ounces of gold and gold - equivalent resources representing an average discovery cost
per ounce of US$24 .
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. Generally, forward -
looking information can be identified using forward - looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate",
"forecast", "project", "budget", "schedule", "ma y", "will", "could", "might", "should", "indicate" 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 subj ect 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: timing of receipt of mining permit; timing of mining development; projected heap leach recoveri es ; early
exploration; the closing of the agreement with the exploration and development company to advance the Magambazi Project or 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 Ady abo, Harvest and Magambazi Properties; interest
and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of c urrent exploration
activities; government regulation; political or economic develo pments; foreign taxation risks; environmental risks; insurance risks; capital
expenditures; operating or technical difficulties in connection with development activities; personnel relations; the specula tive nature of
strategic metal exploration and develo pment 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 in East Africa's management's
discussion and analysis for the three months and nine months ended September 30, 2023 and for the year ended December 31, 2023 , and East
Africa's listing application dated July 8, 2013. Mineral Resources, which are not Mineral Reserves, do not have demonstrated e conomic viability.
The contained gold, copper and silver figures shown are in situ. No assurance can be given that the estimated quantities will be produced.
Forward - looking statements are based on assumptions management believes to be reasonable, includin g but not limited to the timely closing
of the financing; the timely closing of the Handeni Property definitive agreement; the price of gold, silver, copper and zinc ; the demand for gold,
silver, copper and zinc; the ability to carry on exploration and dev elopment 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; the renewal or ext ension of exploration Licenses; 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 m aterially 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 f uture events could
differ materially from those anticipated in such information. The Company does not update or revise forward looking informati on 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 Ve nture Exchange) accepts responsibility for the adequacy or accuracy of this
release.