Business
East Africa Metals Provides Update on Magambazi Project, Tanzania
Positioning Ubora as Development Partner and Advancing Formal Mining Plan to Enable License Renew...
About this update from East Africa Metals, Inc.
[{"type":"text","content":"East Africa Metals Provides Update on Magambazi Project, TanzaniaPositioning Ubora as Development Partner and Advancing Formal Mining Plan to Enable License Renewal and Initiate Mine DevelopmentVancouver, British Columbia--(Newsfile Corp. - August 29, 2025) - East Africa Metals Inc. (TSXV: EAM) (FSE: EA1) (OTC Pink: EFRMF) (\"East Africa\" or the \"Company\") is pleased to provide an update on the status of its Handeni Properties in Tanzania, including the Magambazi gold deposit.Government Engagement and Third-Party DeveloperSince the suspension of operations at the Magambazi project in December 2022 due to non-compliance by the prior operator PMM Mining Company Limited (\"PMM\"), East Africa has maintained continuous engagement with the Tanzanian Ministry of Minerals to secure a sustainable path forward for the development of the Magambazi Project.Following a government-led mediation process initiated in August 2024, East Africa and PMM were directed by the Minister of Minerals to identify a qualified third-party developer to advance the project. In consultation with the Ministry, East Africa has signed a binding Memorandum of Understanding (\"MOU\") with Ubora Minerals Company Limited (\"Ubora\"), a Tanzanian company and subsidiary of Anchises Capital Precious Metal Fund LLC, one of the major shareholders of East Africa.The MOU provides for the acquisition of the Magambazi Project by Ubora, for a cash payment of US$1.0 million to East Africa and a 4% Net Smelter Returns royalty payable to East Africa. Ubora has committed to commence project development within 48 months of securing the necessary approvals, with a targeted production rate of 40,000 ounces of gold per annum.Formal Mining Plan DevelopmentAs part of the government-supervised process, Ubora, with the support of East Africa and in consultation with the Tanzanian Ministry of Minerals, is preparing a formal mining plan. This plan is a prerequisite for the renewal of the Magambazi and Handeni mining licenses and is designed to establish a clear framework for advancing to the next phase of mine development.The mining plan will address:Technical and operational parameters for open-pit development at Magambazi;Environmental and community considerations;Compliance with Tanzanian mining legislation and regulatory standards; and, Timelines and investment thresholds required t...