East Africa Receives Final Payment in Adyabo Transaction
East Africa Receives Final Payment in Adyabo
Transaction
VANCOUVER
,
Dec. 2, 2019
/CNW/ -
East Africa Metals Inc.
(TSX-V: EAM - "East Africa" or the "Company") is
pleased to announce that it has received the final payment of
$600,000 USD
from Tibet Huayu Mining Co. Ltd.
(THM) as part of the closing of the transaction under which Tibet Huayu Mining Co., Ltd. ("Tibet Huayu" or "THM")
has purchased a 70% interest in the Company's Adyabo Project pursuant to the Share Purchase Agreement signed
June 28, 2019
, as amended
August 9, 2019
(See News Release dated
August 23
, 2019).
Mr.
Andrew Lee Smith
, EAM's C.E.O., is travelling to
Addis Ababa, Ethiopia
, this week to meet with THM and to
complete the formal registration of the transfer of 70% of EAM's equity interest in its Ethiopian subsidiary which
holds the Adyabo Project.
Mr. Smith stated, "Receipt of the final payment and the upcoming formal registration of the transfer allows the
parties to begin the development of the Project, a historic stage in the Company's development."
About East Africa Metals
East Africa's
assets include four, fully permitted, development ready gold and base metal projects in
Africa
. Over the
past seven years
East Africa
has been able to advance the Company's exploration assets through the discovery
phase, resource definition and permitting through to development phase at a pace that is seldom seen in emerging
resource sectors. The performance of the exploration programs designed and implemented by
East Africa
are
notable, not only due to short time-frame it has taken to achieve the milestone of this past week, but also by the
extremely low discovery costs.
The Company's mineral resources:
EAM Project Resources (Au + Au
eqv
Metal ounces)
Project
Category
Au + Au
eqv
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
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
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 by the use of forward-looking terminology
such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule",
"may", "will", "could", "might", "should", "indicate", "confident" or variations of such words or similar words or
expressions. Forward-looking information is based on reasonable assumptions that have been made by the
Company 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 the Company to be
materially different from those expressed or implied by such forward-looking information, including but not limited
to: closing of the Tibet Huayu Transaction; obtaining all required approvals for the Tibet Huayu Transaction; the
ability of Tibet Huayu to develop and operate the Ethiopia Projects and Properties within the required laws and
agreements; the outcome of the arbitration case with the developer for the Tanzanian projects; if the arbitration
case is successful that the Company can occupy the site and advance the Tanzanian projects; if the arbitration is
successful the Tanzanian Definitive Agreement payments are not refundable; recoverability of the Ethiopian and
Tanzanian VAT receivable; early exploration; the ability of
East Africa
to identify any other corporate opportunities
for the Company; the possibility that the Company may not be able to generate sufficient cash to service its
planned operations and may be force to take other options; the risk the Company may not be able to continue as a
going concern; the possibility the Company will require additional financing to develop the Ethiopian Projects into a
mining operation; the risks associated with obtaining necessary licenses or permits including and not limited to
Ethiopian Government approval of EAM Mineral Resources extensions for the Company's Ethiopian Properties
and Projects; risks associated with mineral exploration and development; metal and mineral prices; availability of
capital; accuracy of the Company's projections and estimates, including the initial and any updates to the mineral
resource for the Adyabo, Harvest and Handeni Projects; realization of mineral resource estimates; interest and
exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of
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 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 the Company's listing application,
East Africa's
financial statements
and management's discussion and analysis for the three months ended
March 31, 2019
and for the year ended
December 31, 2018
, and
East Africa's
listing application dated
July 8, 2013
. Mineral Resources which are not
Mineral Reserves do not have demonstrated economic viability. The estimate of mineral resources may be
materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant
issues. The quantity and grade of reported inferred mineral resources as the estimation is uncertain in nature and
there has been insufficient exploration to define any inferred mineral resources as an indicated or measured
mineral resource and it is uncertain if further exploration will result in upgrading inferred mineral resources to an
indicated or measured mineral resource category. 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, including but not limited to the price of precious and base
metals; the demand for precious and base metals; 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 including and not limited to license approvals, social and environmental matters, and such other
assumptions and factors as set out herein. Although the Company 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 to 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.
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SOURCE
East Africa Metals Inc.
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For further information:
Nick Watters, Business Development, Telephone +1 (604) 488-0822, Email
[email protected], Website www.eastafricametals.com
CO: East Africa Metals Inc.
CNW 03:05e 02-DEC-19