Lundin refreshes East Africa Metals buy Lundin refreshes East Africa Metals buy
Brien Lundin, in the July, 2015, edition of the Gold Newsletter, refreshes his buy of East Africa Metals Inc., recently seven cents. Mr. Lundin said buy East Africa in April, 2015, at six cents. A $1,000 investment at six cents is now worth $1,166. The company recently agreed to sell its Handeni gold project in Tanzania to an unnamed developer. The purchaser will pay $1-million (U.S.) for the property, plus another $1-million (U.S.) for the book value of the camp, equipment and other assets on the project. East Africa will retain a 1.6-per-cent net smelter return royalty and the right to a gold stream equivalent to 30 per cent of the life-of-mine production. As well, East Africa says it will receive 9.9 per cent of the outstanding shares of the unnamed developer, which plans to list on London Stock Exchange's Alternative Investment Market. Mr. Lundin notes that Handeni consists primarily of the Magambazi deposit, which hosts an indicated gold resource of 721,300 ounces and an inferred gold resource of 292,400 ounces. The editor says this is a good deal for East Africa, which can use the money from the sale to finance drilling at its Harvest and Adyabo projects in Ethiopia. The stock remains a buy.