VANCOUVER, BC--(Marketwired - December 12, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) ("East Africa" or the "Company") is pleased to provide an update on its previously announced financing (see news release, November 2, 2016).
East Africa has received confirmation from Shandong Tyan Home Co. Ltd. ("STH") that it has completed legal, financial and technical due diligence, and that the subscription agreement to acquire 20M Units of East Africa has been executed.
The financing terms include:
- STH to acquire 20 Million Units of East Africa at a price of $0.26 per Unit for gross proceeds of $5.2 Million;
- Each Unit is comprised of one common share and one-half share purchase warrant with an exercise price of $0.45;
- STH also agreed to provide or identify a partner or lender to provide a US$10 Million Line of Credit to support the development of the Terakimti Oxide Gold Project, which is non-binding on STH;
- Closing of the private placement is conditional on receiving TSX Venture Exchange approval, receipt of funds and issuance of securities.
Use of Proceeds
Once closing of the financing is complete, funds will be used for ongoing exploration and development of East Africa's Adyabo and Harvest projects located in the Tigray region of the Federal Republic of Ethiopia and general working capital.
About Shandong Tyan Home Co. Ltd.
STH is a Chinese listed public company on the Shanghai Stock Exchange, with an integrated business range including real estate, mining, finance and venture capital investment. The market capitalization of STH is ¥12.1B (US$1.6B). Gold is one of the key business sectors of STH, and STH recently acquired an Australian gold company, Minjar Gold Pty. Ltd., in 2014, which is mainly engaged in prospecting, mining and processing of gold.
About East Africa
The Company's principal assets and interests include both the 70% owned Harvest polymetallic VMS exploration Project, which hosts the Terakimti Deposit and which covers approximately 86 square kilometres in the Tigray region of Ethiopia, 600 kilometres northnorthwest of the capital city of Addis Ababa, and the Adyabo Project, hosting the Mato Bula trend Adyabo Resource, covering 225 square kilometres immediately west of the Harvest Project. The Company owns 100% of the Adyabo Project, subject to a 2% NSR. East Africa now has mineral resources defined at both projects in Ethiopia and plans to continue to test priority targets. Additionally, the Company owns the 93 square kilometre Handeni Property located in north-eastern Tanzania. Handeni includes the Magambazi Project, a gold deposit discovered in 2009. East Africa has entered into a definitive agreement with an arm's length private exploration and development company to advance the project.
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