Business
East Africa Metals Arranges Financing to Advance Ethiopian Projects
VANCOUVER, BC--(Marketwired - November 02, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) ("East Africa" or the "Company") is pleased to announce the signin
About this update from East Africa Metals, Inc.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - November 02, 2016) - East Africa Metals Inc. (TSX VENTURE: EAM) (\"East Africa\" or the \"Company\") is pleased to announce the signing of a Letter of Intent with Shandong Tyan Home Co., Ltd. (the \"Purchaser\" or \"STH\"), a listed public company of China, to provide equity finance to the Company. This Agreement will allow the Company to advance its exploration assets located in the Federal Republic of Ethiopia, including the Harvest, Adyabo and Terakimti Oxide Gold Projects. Highlights: The Letter of Intent is binding on STH to subscribe to a Private Placement to acquire 20 Million Units of East Africa at a price of $0.26 per Unit for gross proceeds of $5.2 Million; Units are comprised of one Common Share and one-half share purchase Warrant with an exercise price of $0.45; STH also agreed to provide a US$10 Million Line of Credit to support the development of the Terakimti Oxide Gold Project, which is non-binding on the Purchaser. Strategic Partnership with STHShandong Tyan Home Co., Ltd. (\"STH\") is a Chinese listed public company on Shanghai Stock Exchange (stock code: 600807), with an integrated business range including real estate, mining, finance and venture capital investment. The total assets of STH cumulate to more than RMB￥5 billion Chinese Yuan. 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. Transaction DetailsBy executing the letter of intent, STH has agreed to subscribe to 20 Million Units of East Africa by way of Private Placement at a price of $0.26 per unit for a total amount of $5,200,000. Each unit will consist of one common share and one half share purchase warrant. The share purchase warrants (\"Warrants\") will entitle the holder to purchase one common share at an exercise price of $0.45 and will expire 18 months from closing. If at any time after the date that is four months from the date the Warrants are issued, the Company's common shares have a closing price of $0.65 or greater for a period of 10 consecutive trading days, the Company will be entitled to accelerate the expiry date of the Warrants upon 20 days' notice given and the Warrants will then expire on the 20th day after the date of such notice. As a result of thi...