Business
East Africa Metals Concludes Agreement for Development Financing
VANCOUVER, British Columbia, Aug. 14, 2019 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX-V: EAM - “East Africa” or the “Company”) The Company is pleased to a
About this update from East Africa Metals, Inc.
[{"type":"text","content":" VANCOUVER, British Columbia, Aug. 14, 2019 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX-V: EAM - “East Africa” or the “Company”) The Company is pleased to announce that, effective August 9, 2019, Tibet Huayu Mining Co. Limited (“Tibet Huayu” or “THM”) and East Africa have agreed and concluded certain documentation for the previously announced Adyabo transaction (see East Africa News Release dated July 2, 2019). With the signing of an amendment to the Share Purchase Agreement executed in June 2019, the parties have agreed all conditions precedent and obligations required for closing under the Share Purchase Agreement have been met or waived and the parties are now proceeding towards formally closing the transaction. The Company has received conditional acceptance of the transaction from the TSX Venture Exchange and anticipates receiving final approval from the Exchange in due course. Under the transaction, THM, through its wholly owned subsidiary, Silk Road Resources Investments Co., Limited, will conduct the development and operation of the Adyabo Project’s Mato Bula and Da Tambuk deposits located in the Tigray region of the Federal Republic of Ethiopia. Highlights: The parties agree that all of the conditions to be satisfied or waived have been satisfied or waived. The parties shall work jointly to advance and complete the registration of the transfer of 70% of East Africa’s equity interest in its Ethiopian subsidiary pursuant to the Ethiopian laws and regulations, upon which THM will have purchased a 70% interest in the Adyabo Project. Upon the payment of the closing consideration Tibet Huayu will have the right to initiate the design, construction and related works at the projects. THM will finance 100% of the capital costs, and operate the mine development program and mining operations. Estimated capital costs for construction of US$54 million for Mato Bula and US$34 million for Da Tambuk (see East Africa News Release dated April 30, 2018). EAM will retain the exploration rights to all prospective mineralization on its concession areas outside of the current resource. Tibet Huayu Project Development FinancingThe terms of the executed Share Purchase Agreement and Joint Venture Contract confirm Tibet Huayu’s obligation to fund 100% of the capital expenditures required to develop the Mato Bula and Da Tambuk deposits, opera...