East Asia Minerals divests interest in N. Sulawesi gold project
Wednesday, July 8 2015 - 03:01 AM WIB
TSX-listed East Asia Minerals Corporation (EAM) announced Tuesday that it has entered into a Definitive Agreement with PT Arsinali, a corporation based in Indonesia, effective as of July 3, 2015.
EAM said in a statement that the Definitive Agreement provides for the sale of 50 percent the company's interests in Sangihe Gold Corporation, which holds a 70 percent interest in PT Tamang Mas Sangihe, an Indonesian company holding the company's interests in the Sangihe project in North Sulawesi, Indonesia.
The Agreement is subject to TSX Venture Exchange approval, the statement added.
Following are the terms of the Agreement.
1. PT Arsinali will pay to EAM a cash payment of US$1,400,000 within 5 days upon receipt of TSX Venture Exchange approval.
2. PT. Arsinali will provide EAM with a 1.5% net smelter returns royalty on the interests that it acquires.
3. PT Arsinali has agreed to expend over US$1,900,000 over a 12 month period directly into the Sangihe project in order to bring the project to pre-production stage, including the completion and approval by governmental authorities of a feasibility study, environmental study and pre-construction permitting.
4. PT Arsinali will immediately move its team of experienced mining engineers and geologists to the project site on Sangihe Island, Indonesia to start working upon the closing of the Agreement.
5. At the end of the 12 month period, if PT Arsinali has completed all of the requirements of the Agreement it will have a 30 day option to purchase the remaining 50% interest in Sangihe Gold Corporation at fair market value, subject to the agreement of the company and TSX Venture Exchange approval.
PT Arsinali is a high profile Indonesian company currently involved in numerous investment projects throughout the country of Indonesia.
East Asia Minerals said that through the acquisition of a 50 percent equity interest in the company's interests in the Sangihe project, the company will be able to continue to develop the Sangihe Gold project in North Sulawesi. The company has obtained a 43-101technical report on the Sangihe project in 2010.
Editing by Reiner Simanjuntak