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East Africa Metals Announces Completion of Warrant Acceleration and Extension of Related Party Loan
VANCOUVER, British Columbia, Feb. 07, 2018 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX Venture:EAM) (“East Africa” or the “Company”) announces the followin
About this update from East Africa Metals, Inc.
[{"type":"text","content":"VANCOUVER, British Columbia, Feb. 07, 2018 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX Venture:EAM) (“East Africa” or the “Company”) announces the following Corporate updates: Completion of Warrant Acceleration Further to its news release dated January 15, 2018, the Company has successfully completed the acceleration of its share purchase warrants issued under the private placement completed on May 31, 2016. 3,771,680 warrants were exercised at a price of $0.25 per share, for proceeds of $942,920. The remaining 634,700 warrants have expired and are cancelled. Related Party Loan Extension The Company and SinoTech (Hong Kong) Corporation Limited (“SinoTech”), an insider of the Company, have signed an extension of the maturity date of the related party loan entered into in September 2017. On September 1, 2017, the Company announced that SinoTech had agreed to provide an unsecured loan to the Company in the amount of $600,000. The loan bears an interest rate of 12% per annum and is payable upon the earlier of (a) 15 business days after the closing of a financing or (b) 120 days from the Company’s receipt of the loan proceeds. The Company has repaid $300,000 of the principal of the loan and corresponding interest. The outstanding loan balance of $300,000 will bear an interest rate of 12% per annum and will mature on the earlier of: (a) 15 Business Days after the closing of the Company’s $11,544,000 financing announced on December 29, 2017 or (b) May 21, 2018 (120 days from January 14, 2018). 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...