Business
East Africa Metals Announces an Extension to Related Party Loan
VANCOUVER, British Columbia, Oct. 15, 2018 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX Venture: EAM) (“East Africa” or the “Company”) announces that the Co
About this update from East Africa Metals, Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Oct. 15, 2018 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX Venture: EAM) (“East Africa” or the “Company”) announces that the Company and SinoTech (Hong Kong) Corporation Limited (“SinoTech”), an insider of the Company, have signed a third extension of the maturity date for the related party loan entered into in September 2017. On June 1, 2018, the Company announced that SinoTech had agreed to extend the maturity date of an unsecured loan to the Company in the amount of $300,000 (the “Loan”). The loan carried an interest rate of 12% per annum and was payable upon the earlier of (a) 15 Business Days after the Borrower’s closing of any future financing greater than CAD$3,000,000 or (b) 120 days from May 21, 2018. The new extension of the $300,000 Loan maturity date reflects the Loan will be repaid upon the earlier of (a) 15 Business Days after the Borrower’s closing of any future financing greater than CAD$3,000,000 or (b) 3 months from September 14, 2018 and will bear an interest rate of 12% per annum. The extension of the loan may be considered a related party transaction pursuant to Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions as SinoTech is an insider of the Company. The extension of the loan is exempt from the formal valuation requirement of such instrument and policy on the basis that the Company is not listed on a market specified under such instrument and policy, and the extension of the loan is exempt from the minority shareholder approval requirement of such instrument and policy on the basis that the loan is made on reasonable commercial terms which is not convertible into voting or equity securities of the Company. The Company did not file a material change report 21 days prior to the extension of the loan as the Company and SinoTech required time to negotiate the extension terms. 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 DevelopmentTelephone: +1 (604) 488-0822Email: [email protected] Website: www.eastafricametals.com Cautionary Statement Regarding Forward-Looking InformationThis news release contains \"forward-looking informa...