VANCOUVER, British Columbia, Jan. 26, 2018 (GLOBE NEWSWIRE) -- East Africa Metals Inc. (TSX Venture:EAM) (“East Africa” or the “Company”) announces the following corporate updates.
Financing update
Further to the news release dated December 29, 2017, the binding subscription agreement between Luck Sky Resources Investment Limited (“LS”) and the Company for LS to subscribe for 44,400,000 units at a price of $0.26 per unit for gross proceeds of $11,544,000 continues to remain in effect. Each unit consists of one common share and one-half of one share purchase warrant. Each whole warrant entitles the holder to purchase one common share at an exercise price of $0.45 for a period of 24 months from the date of closing.
Closing of the private placement is subject to certain conditions, including but not limited to, disinterested shareholder approval of the creation of a new control person and approval of the TSX Venture Exchange. Upon completion of the private placement for the 44,400,000 units, LS will own approximately 25.5% of the Company’s outstanding shares (32.8% on a diluted basis).
The parties are working towards satisfying the conditions and closing the financing in a timely manner.
Issuance of Bonus Common Shares
In 2016, the Company’s Board of Directors approved the grant of up to 2,750,000 bonus common shares (the “Shares”) to certain officers of the Company, subject to certain conditions including the issue of mining license for the Company’s Harvest project, shareholder approval, and approval of TSX Venture Exchange. Shareholders voted 99.28% in favour (see news release dated June 24, 2016) and in 2016 the TSX Venture Exchange approved of the issuance of the Shares.
As announced on December 15, 2017, following receipt of the mining license for the Harvest project, the Company issued 1,750,000 Shares to certain officers of the Company. On January 26, 2018, the Company issued another 250,000 Shares to certain executives of the Company. The Shares are subject to a hold period expiring May 27, 2018. The Company has yet to issue the remaining 750,000 Shares.
