East Asia Minerals Corporation (the “Company”, “East Asia” or “EAS”)(TSX-V) Further to the news release dated September 2, 2020, the Company is pleased to announce that it has received the environmental permit and has applied for the upgrade of the Sangihe gold project’s Contract of Work (CoW) from exploration and feasibility licence to a full production and export licence.
On September 25, 2020, East Asia Mineral’s subsidiary, PT Tambang Mas Sangihe or “TMS” (the holder of the Sangihe Contract of Work (CoW)) submitted an application to the Ministry of Energy and Mineral Resources of North Sulawesi, Indonesia. The licence will upgrade Sangihe’s current CoW licence from exploration and development/feasibility study level to a fully certified operation, export, and refinery status.
The CoW is a agreement signed with the federal government of Indonesia. This type of agreement has not been issued since 2005 and are generally considered superior to the current IUP licenses that they started issuing 2009.
The CoW is an agreement signed with the federal government of Indonesia. This type of agreement is generally considered superior to the current IUP licences issued by the provinces. The CoW grants the operator 30 years of access to the project, and with a renewal an additional 20 years of access. The CoW encompasses 42,000 hectares of land, of which geological work has discovered that 25,000 hectares are potentially gold bearing. The Sangihe project has expansion and bluesky potential with over 23,000 hectares of the 25,000 hectares that are still open for detailed exploration. EAS plans to start further exploration once production at Sangihe commences and cashflow has stabilized.
The CoW provides operating entities 30 years of access to project once production commences, plus an additional 20 years with renewal. The CoW encompasses 42,000 hectares of land, of which geological work has discovered that 25,000 hectares are potentially gold bearing. Sangihe project has expansion and bluesky potential with over 23,000 hectares of the 25,000 hectares that are still open for detailed exploration. EAS plans to restart further exploration once Sangihe production commences and cashflow has stabilized.
WARRANT ACCELERATION NOTICE
Also, for those investors who recently participated in the private placement that closed on May 12, 2020, please note that there are 4,779,228 warrants exercisable at $0.06 that have an accelerated exercise clause.
If for any ten (10) consecutive trading days the closing price of the Shares on the TSX Venture Exchange (the “Exchange”) exceeds $0.12 at any time commencing after (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 stock price has been above $0.12 since September 14, 2020. The Company hereby notifies all the warrants holders that the warrants have accelerated and the new expiry date for the warrants issued on April 17, 2020 will be October 27, 2020.
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 Company’s “Independent Technical Report on the Mineral Resource Estimates of the Binebase and Bawone Deposits, Sangihe Project, North Sulawesi, Indonesia” dated May 30, 2017. Only 10% of the gold bearing area has been explored. Readers are cautioned that mineral resources that are not mineral reserves do not have demonstrated economic viability. 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 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 NI43-101 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 heap leach operation. East Asia has a team of mining professionals in North America and locally in Indonesia with extensive experience in starting and operating small-scale gold and coal assets. With the team in place, East Asia plans to raise capital and market awareness to develop its highly prospective project portfolio.
Subject to the Indonesian Government Operations Production License being granted, the Company intends to proceed to production without the benefit of first establishing mineral reserves supported by a feasibility study. 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 such as 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.
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.
EAST ASIA MINERALS CORPORATION
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
For investor contacts more information, please contact:
647-725-3888 ext 702
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.