East Asia Minerals Corporation (EAMC or The Company) is pleased to announce that the final environmental assessment study (AMDAL) has been submitted to the relevant environmental office in the Province of North Sulawesi. EAMC is anticipating the approval of the AMDAL and it to be issued by the authority within two weeks of this submission.
The approved AMDAL, together with the Indonesian Feasibility Study (IFS) from August 2018 which has been approved and completion of financial obligation to the government, are the requirements to upgrade the Sangihe Gold Project license to production operation stage.
Once EAMC obtains the production operation license, anticipated to be in Q3 2020, the Company will start on production financing and next steps to bring the Sangihe Gold project to operation.
NON-BROKERED $100,000 FINANCING FOR AMDAL
In support of the preparation of the AMDAL permit, the Company will issue 909,091 worth of shares at $0.11 unit price for proceeds of $100,000 (the offering) to top up AMDAL related professional fees, mining reclamation planning process at Sangihe, and working capital expenditures relating to the AMDAL.
The units will be taken by long-term EAS stakeholders and investors and is expected to close by July 27, 2020. Each unit is comprised of one (1) common share and one (1) share purchase warrant exercisable for a term of two years for the purchase of an additional common share at the prices of $0.15 per common share.
The exercise of the warrants shall be subject to the following acceleration provision: if for any ten (10) consecutive trading days the closing price of the Shares on the TSX Venture Exchange (the Exchange) exceeds $0.19 at any time commencing (4) months after the Closing Date and until the expiry date of the warrants, then the remaining term of the warrants will be reduced to thirty (30) days, commencing after the end of such ten (10) consecutive trading day period. The Issuer will notify warrant holders by way of a press release that the warrants have accelerated and provide new expiry dates in such press release. This clause may not be used to extend the expiry date of the warrants.
ISSUE OF STOCK OPTIONS
The Company announces that it has granted an aggregate amount of 1,000,000 stock options to a consultant of the company in accordance of the provisions of the companys stock option plan, subject to approval of the TSX Venture Exchange. Each option entitles the holder to purchase one common share of the company at an exercise price of $0.10 for a five-year period.
The foregoing transactions are subject to approval of the Exchange
ABOUT SANGIHE GOLD PROJECT
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 as reported in the Companys Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia dated May 30, 2017 Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. The Companys 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.
ABOUT EAST ASIA MINERALS CORPORATION
East Asia Minerals is a dynamic junior gold developer with two assets totaling combined resources of 3.3 million ounces NI 43-101 gold resources in Indonesia, one of the leading gold producer countries in the world. EAS plans to advance and permit Sangihe in near term and raise funds for a 1,000 ounces per month heap leach operation. With cashflow from operations, the plan is to further expand resources through drilling of the Companys projects. 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.
East Asia has a team of mining professionals in North America and locally in Indonesia with extensive experience in operating small scale gold and coal assets, working diligently to develop its highly prospective project portfolio.
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.