Sale of 95% of Sangihe Gold Corporation (which holds an interest in the Sangihe Gold project in Indonesia)
January 5, 2016 Symbol: EAS
East Asia Minerals Corporation (the “Company”) wishes to announce that it has entered into a agreement with Shellbridge Group Limited. (“SGL”), a corporation based in Hong Kong, effective as of December 23, 2015. The agreement contemplates the parties further entering into a binding agreement for the sale of 95% the Company’s equity interest in Sangihe Gold Corporation (“SGC”), which holds a 70% interest in PT Tambang Mas Sangihe, an Indonesian company holding the company’s interests in the Sangihe project in North Sulawesi, Indonesia, for the purchase price of US$2,400,000.
SGL has provided an interim advance of US$25,000 of such purchase price which has been applied against the landrent obligations in respect of the Sangihe project on an interest free basis until approval of the transaction by the TSX Venture Exchange and East Asia Minerals’s shareholders Should the transaction be terminated rather than completed, East Asia Minerals agrees to reimburse the expenses funded by SGL and such obligation may be secured on the Company’s equity interests in SGC.
The new partner is a well-established mining asset development company with operations in Indonesia. They are fully-financed and have a strong team on hand that will carry our Sangihe project through the next phase of permitting, exploration and feasibility studies.
"East Asia Minerals has been canvasing the market for almost 12 months seeking financial solutions for the advancement of its high-quality Indonesian assets", stated Edward Rochette, Chief Executive Officer of East Asia Minerals. "Of all the alternatives identified during this process, we believe this transaction represents the best value for our shareholders. The new partner has already advanced capital to our Indonesian subsidiary in order for them to carry-on permitting activities ahead of restarting operations. This is a sign of the seriousness and appetite of this company in the success of our Indonesian operations. " Shareholders will have the opportunity to vote and approve the transaction at the upcoming annual general meeting.
The transaction is expected to close within 120 days, subject to the satisfactory completion of the conditions in the agreement, which includes purchaser due diligence, Indonesian government approvals, joint venture partners negotiations, East Asia Minerals shareholders' approval and TSX Venture Exchange approval.
EAST ASIA MINERALS CORPORATION
Per: Edward Rochette, CEO and Director
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.