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East Africa Metals Announces Short Term Related Party Loan
East Africa Metals Announces Short Term Related Party Loan Canada NewsWire VANCO...
About this update from East Africa Metals, Inc.
[{"type":"text","content":"\n\n\n\nEast Africa Metals Announces Short Term Related Party Loan\n\n/* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n\n\n\n\n\n\n\nCanada NewsWire\nVANCOUVER, June 2, 2020\n\n\n\nVANCOUVER, June 2, 2020 /CNW/ - East Africa Metals Inc. (TSX Venture: EAM) (\"East Africa\" or the \"Company\") announces that SinoTech (Hong Kong) Corporation Limited, an insider of the Company, has agreed to provide an unsecured loan to the Company in the amount of CAD$250,000 at an interest rate of 12% per annum.  The loan is repayable upon the earlier of (a) 15 business days after the Company's closing of any financing or transaction in connection with the development of the Company's Harvest project (see press Release dated February 24, 2020); or (b) 6 months from the Company's receipt of the loan proceeds.  Any extension of the loan is subject to SinoTech's agreement.\n\n \n \n \n \n \n \n\n \n\"The continued support of SinoTech as we develop our Ethiopian assets is greatly appreciated,\" stated Andrew Lee Smith, company president and chief executive officer. \"East Africa expects to continue to benefit from the contributions of our Beijing-based partner as we continue to advance the Company and the Harvest project.\"\nThe proceeds will be used for short term working capital.\nThe loan from an insider is considered a related party transaction pursuant to Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions.  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 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.\nThe Company did not file a material change report 21 days prior to the closing of the loan as the Company considered it in the best interests of the Company to close the loan in order to use the funds prior to tha...