Business
East Africa Metals Closes $1 Million Non-Brokered Private Placement
VANCOUVER, BC--(Marketwired - May 31, 2016) - NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATIO
About this update from East Africa Metals, Inc.
[{"type":"text","content":"VANCOUVER, BC--(Marketwired - May 31, 2016) - NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES East Africa Metals Inc. (TSX VENTURE: EAM) (the \"Company\") announces that it has closed the previously announced non-brokered private placement financing of 10,000,000 units at a price of $0.10 per unit, for gross proceeds of $1,000,000. Each unit consists of one common share of the Company and one-half of one non-transferable common share purchase warrant. Each whole warrant will entitle the holder thereof to purchase one common share at an exercise price of $0.25 for a period of 24 months from the date of closing. Proceeds from the private placement will be used to advance the Company's Harvest and Adyabo projects, as well as for working capital purposes. If at any time after October 1, 2016, the Company's common shares have a closing price on the TSX Venture Exchange (or such other exchange on which the common shares may be traded at such time) of $0.30 per share 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 by news release, and the warrants will then expire on the 20th day after the date of such notice. The Company will pay finders' fees in connection with some of the subscriptions in an aggregate amount of $57,618 cash and 576,180 warrants. All of the securities issued in connection with this placement are subject to a hold period expiring on October 1, 2016. Three insiders of the Company participated in the private placement and subscribed for an aggregate of 157,000 units representing an aggregate amount of $15,700. Participation of insiders in the private placement constitutes a related party transaction pursuant to Multilateral Instrument 61-101 Protection of Minority Shareholders in Special Transactions. The private placement is exempt from the formal valuation and minority shareholder approval requirements of such instrument and policy as neither the fair market value of securities being issued to insiders nor the consideration being paid by insiders exceed 25% of the Company's market capitalization. The Company did not file a material change report 21 days prior to the clo...