VANCOUVER, Dec. 2, 2019 /CNW/ - East Africa Metals
Inc. (TSX-V: EAM - "East Africa" or the "Company") is
pleased to announce that it has received the final payment of
$600,000 USD from Tibet Huayu Mining
Co. Ltd. (THM) as part of the closing of the transaction under
which Tibet Huayu Mining Co., Ltd. ("Tibet Huayu" or "THM") has
purchased a 70% interest in the Company's Adyabo Project pursuant
to the Share Purchase Agreement signed June
28, 2019, as amended August 9,
2019 (See News Release dated August
23, 2019).
Mr. Andrew Lee Smith, EAM's
C.E.O., is travelling to Addis Ababa,
Ethiopia, this week to meet with THM and to complete the
formal registration of the transfer of 70% of EAM's equity interest
in its Ethiopian subsidiary which holds the Adyabo Project.
Mr. Smith stated, "Receipt of the final payment and the upcoming
formal registration of the transfer allows the parties to begin the
development of the Project, a historic stage in the Company's
development."
About East Africa Metals
East Africa's assets include
four, fully permitted, development ready gold and base metal
projects in Africa. Over the past
seven years East Africa has been
able to advance the Company's exploration assets through the
discovery phase, resource definition and permitting through
to development phase at a pace that is seldom seen in emerging
resource sectors. The performance of the exploration programs
designed and implemented by East
Africa are notable, not only due to short time-frame it has
taken to achieve the milestone of this past week, but also by the
extremely low discovery costs.
The Company's mineral resources:
EAM Project
Resources (Au + Aueqv Metal ounces)
|
Project
|
Category
|
Au +
Aueqv
ounces
|
Adyabo
Project
|
Indicated
|
446,000
|
Inferred
|
551,000
|
Harvest
Project
|
Indicated
|
469,000
|
Inferred
|
426,000
|
Handeni
Project
|
Indicated
|
721,000
|
Inferred
|
292,000
|
*See East Africa
Metals Project Resource Table attached for additional
detail
|
More information on the Company can be viewed at the Company's
website: www.eastafricametals.com.
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO
Cautionary Statement Regarding Forward-Looking
Information
This news release contains "forward-looking information"
within the meaning of applicable Canadian securities legislation.
Generally, forward-looking information can be identified by the use
of forward-looking terminology such as "anticipate", "believe",
"plan", "expect", "intend", "estimate", "forecast", "project",
"budget", "schedule", "may", "will", "could", "might", "should",
"indicate", "confident" or variations of such words or similar
words or expressions. Forward-looking information is based on
reasonable assumptions that have been made by the Company as at the
date of such information and is subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of the Company to be
materially different from those expressed or implied by such
forward-looking information, including but not limited to: closing
of the Tibet Huayu Transaction; obtaining all required approvals
for the Tibet Huayu Transaction; the ability of Tibet Huayu to
develop and operate the Ethiopia Projects and Properties within the
required laws and agreements; the outcome of the arbitration case
with the developer for the Tanzanian projects; if the arbitration
case is successful that the Company can occupy the site and advance
the Tanzanian projects; if the arbitration is successful the
Tanzanian Definitive Agreement payments are not refundable;
recoverability of the Ethiopian and Tanzanian VAT receivable; early
exploration; the ability of East
Africa to identify any other corporate opportunities for the
Company; the possibility that the Company may not be able to
generate sufficient cash to service its planned operations and may
be force to take other options; the risk the Company may not be
able to continue as a going concern; the possibility the Company
will require additional financing to develop the Ethiopian Projects
into a mining operation; the risks associated with obtaining
necessary licenses or permits including and not limited to
Ethiopian Government approval of EAM Mineral Resources extensions
for the Company's Ethiopian Properties and Projects; risks
associated with mineral exploration and development; metal and
mineral prices; availability of capital; accuracy of the Company's
projections and estimates, including the initial and any updates to
the mineral resource for the Adyabo, Harvest and Handeni Projects;
realization of mineral resource estimates; interest and
exchange rates; competition; stock price fluctuations; availability
of drilling equipment and access; actual results of exploration
activities; government regulation; political or economic
developments; foreign taxation risks; environmental risks;
insurance risks; capital expenditures; operating or technical
difficulties in connection with development activities; personnel
relations; the speculative nature of strategic metal exploration
and development including the risks of contests over title to
properties; and changes in project parameters as plans continue to
be refined, as well as those risk factors set out in the Company's
listing application, East Africa's
financial statements and management's discussion and analysis for
the three months ended March 31, 2019
and for the year ended December 31,
2018, and East Africa's
listing application dated July 8,
2013. Mineral Resources which are not Mineral Reserves do
not have demonstrated economic viability. The estimate of mineral
resources may be materially affected by environmental, permitting,
legal, title, taxation, sociopolitical, marketing, or other
relevant issues. The quantity and grade of reported inferred
mineral resources as the estimation is uncertain in nature and
there has been insufficient exploration to define any inferred
mineral resources as an indicated or measured mineral resource and
it is uncertain if further exploration will result in upgrading
inferred mineral resources to an indicated or measured mineral
resource category. The contained gold, copper and silver figures
shown are in situ. No assurance can be given that the estimated
quantities will be produced. Forward-looking statements are based
on assumptions management believes to be reasonable, including but
not limited to the price of precious and base metals; the demand
for precious and base metals; the ability to carry on exploration
and development activities; the timely receipt of any required
approvals; the ability to obtain qualified personnel, equipment and
services in a timely and cost-efficient manner; the ability to
operate in a safe, efficient and effective manner; and the
regulatory framework including and not limited to license
approvals, social and environmental matters, and such other
assumptions and factors as set out herein. Although the
Company has attempted to identify important factors that could
cause actual results to differ materially from those contained in
forward-looking information, there may be other factors that cause
results not to be as anticipated, estimated or intended. There can
be no assurance that such information will prove to be accurate, as
actual results and future events could differ materially from those
anticipated in such information. The Company does not update or
revise forward looking information even if new information becomes
available unless legislation requires the Company to do so.
Accordingly, readers should not place undue reliance on
forward-looking information contained herein, except in accordance
with applicable securities laws.
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.
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SOURCE East Africa Metals Inc.