East Asia Minerals Lists with OCMX and offers USD$5 million Secured Promissory Notes
TSX VENTURE: EAS
March 1, 2019 / TheNewswire / Vancouver, British Columbia - East Asia Minerals Corporation (the `Company` or `EAS`) (TSX-V) is pleased to announce that it has entered into a credit listing arrangement with Optimize Capital Markets (OCMX) of Toronto to secure a credit facility loan for up to USD$5,000,000 which will be approximately CAD$6,500,000.
The Company is offering up to 20 Secured Promissory Notes with a face value of USD$250,000 each (the "Notes"). The minimum amount of the offering and first closing will occur upon the receipt of subscriptions for 4 of the Notes. The final closing for the offering will occur upon the receipt of total subscriptions for 20 of the Notes, or earlier at the Company's discretion.
The Note terms will be governed by a credit facility agreement. The contemplated credit facility will have a maturity of 48 months from the date of the first closing. The Notes will bear interest at a rate of 11% per annum. The terms of repayment will be interest only for 48 months with the outstanding principal due with the 48th month's interest payment. EAS can, at its sole discretion, elect to repay the Notes after 36 months and before the 48th month. If EAS elects to repay the Notes early, EAS will, in addition to the principal and interest then due, pay a pre-payment penalty of 2% on the outstanding principal at the time of early repayment.
The Notes will be secured against the interest of EAS in the Sangihe (Indonesia) mining project through a mortgage granted against the shares held by EAS in its wholly owned Canadian subsidiary, Sangihe Gold Corporation. Sangihe Gold Corporation holds a 70% interest in PT TMS, an Indonesian company, which wholly owns the exploration and exploitation license for the Sangihe mining project.
The financing described herein is contingent to market conditions and regulatory approval in United States and Canada.
Funds will be used to bring the Sangihe Gold Project into production, exploration and infill drilling of the Binebase/Bawone Corridor to increase both resources and reserves, as well as general working capital.
The Company's has completed the Indonesian Feasibility Study (IFS) and AMDAL Environmental reports which have been submitted to the Indonesian Mining Department (MEMR). As soon as funding is in place, construction of the mining facilities and infrastructure can begin at the Sangihe project.. The Indonesian Feasibility Study is not a Feasibility Study as defined by CIM as required by NI 43-101 but is required under Indonesian law in order to obtain a license to construct a production facility. The IFS will be re-issued within 30 days as a Pre-Feasibility Study which will identify if all or part of the Mineral Resource may be converted to a Mineral Reserve at the time of reporting.
The Company cautions readers that the any production decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks outlined in the "forward looking statement" below.
Terry Filbert, President & CEO of East Asia Minerals Corporation commented that "this funding solution enables EAS to move forward on long term plans to develop the Sangihe property to generate revenue and positive cash flow for the Company. This will put the company on a fast track to increase shareholder value in a non-dilutive manner".
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, Chief Geologist of East Asia Minerals Corp. is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
The Sangihe gold-copper project is located on the island of Sangihe off the northern coast of Sulawesi and has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated and 105,000 inferred ounces of Gold. The Company's 70-percent interest in the Sangihe-mineral-tenement contract of work ("CoW") is held through PT Tambang Mas Sangihe (PTTMS). The remaining 30-percent interest in PTTMS is held by three unaffiliated Indonesian corporations. The term of the Sangihe CoW agreement is for 30 years upon commencement of the production phase of the project.
EAST ASIA MINERALS CORPORATION
Per: "Terry Filbert"
Terry Filbert, Chairman & CEO
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this News Release, which are not historical in nature, constitute "forward looking statements" within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company's performance or events as of the date hereof. These statements reflect management's current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project's output will not be salable at a price that will cover the project's operating and maintenance costs. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.