VANCOUVER, Jan. 24, 2020 /CNW/ - East Africa
Metals Inc. (TSX-V: EAM - "East Africa" or the
"Company") is pleased to announce that it has received a project
update from Tibet Huayu Mining Co. Limited ("THM") regarding plans
and current activities for the development and construction of the
Mato Bula and Da Tambuk mines located on the Adyabo property.
Following the signing of the Share Purchase Agreement, which
formally completed the Adyabo transaction and confirmed the
ownership of Tigray Resources Inc. ("TRI") as 70% THM and 30% EAM,
EAM received an update on THM's preparations for the construction
of the mines at Adyabo. As per the Agreement, THM is responsible
for 100% of the mine construction costs.
Under the terms of the Agreement, now complete, THM has advised
the Company site construction activities will begin in
March 2020.
Highlights of the agreement include:
- EAM has received a cash payment of US$1.2M on closing
of the transaction and retain a 30% Net Profit Interest.
- THM will finance 100% of the capital costs and operate the mine
development program and mining operations.
- Estimated capital costs for construction of US$54
million for Mato Bula and US$34 million for Da
Tambuk (see East Africa News Release dated April 30,
2018).
- EAM will retain the exploration rights to all prospective
mineralization on its concession areas outside of the current
resource.
Current Engineering, Procurement Construction Management
(EPCM) Activities
Detailed Engineering Design: TRI signed a service
contract with Engineering Design Company, Yantai Orient
Metallurgical Design and Research Institute Co. Ltd. for
Mato Bula Gold-Copper and Silver
Mining project. The construction level design work has been
completed as part of the revised feasibility study and a
Preliminary Report has been submitted to TRI. Currently, the report
is under review by THM's senior engineers.
Preparations for Mine Development
Access Road: The access road survey has been
completed by the design team and road construction is
scheduled to start in March 2020.
Budget: The 2020 budget for site construction
activities has been prepared and sent to THM's senior
management for approval.
Parallel development of Mato Bula and Da Tambuk: TRI is
expected to develop Da Tambuk Gold Mining Project in parallel with
Mato Bula. Da Tambuk and Mato Bula development program is
based on the development plans proposed in TRI's November 2017 NI 43101 compliant Preliminary
Economic Assessment ("PEA") Study Reports (see News Release dated
April 30, 2018).
Next Steps:
- Finalization of the feasibility study for Mato Bula and Da
Tambuk to be submitted for evaluation and approval by the State
Minister of Mines and Petroleum;
- Resettlement of farmers living in the mining project area based
on recommendations from independently authored Relocation Action
Plan and in accordance with government protocols;
- Procurement of main equipment for the processing plant and
- Selection and engagement of a qualified contractor.
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, but also by the extremely low
discovery costs.
Global Resources for East Africa Metals African Projects:
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.
SOURCE East Africa Metals Inc.