East Asia Minerals to spin off assets

Canadian firm East Asia Minerals Corporation announced on Friday the spin off of its exploration assets in Indonesia and Mongolia into four separate companies.

East Asia Minerals has recently set up three new wholly owned subsidiaries to which it will transfer most of its non-Miwah assets. Miwah is the company?s copper and gold exploration property located in Aceh.

The three companies are: 1) Sangihe Gold Corporation, which is to become a precious metals exploration company focused on Eastern Indonesia. It will initially hold East Asia

Minerals' 70% equity interest in the Sangihe gold project in North Sulawesi. The Sangihe project has an NI 43-101 compliant inferred resource of 1,075,263 ounces of gold equivalent,

2) Barisan Gold Corporation, which is to become a gold-copper porphyry exploration company focused on Indonesia. It will initially hold East Asia Minerals'

80% equity interest in the Barisan gold-copper porphyries (including the Abong epithermal gold deposit) and East Asia Minerals' 75% equity interest in the Takengon gold-copper project, all located in Aceh Province,

3) East Asia Energy Corporation, which is to become a Mongolian mining and energy company. It will initially hold all of East Asia Minerals' Mongolian assets, which consist of early stage uranium and phosphate projects.

Immediately following distribution of the dividend-in-kind, Sangihe Gold and Barisan Gold intend to conduct rights offerings to raise the balance of funds necessary to conduct their near-term exploration and development activities, the company said.

"With the continuing development of the large Miwah gold deposit, the significant value of our other assets has not been recognized. These transactions will allow our other assets, which we believe are potentially equally attractive to Miwah, to create their own market and raise their own funds to further exploration and add shareholder value," the company said.

East Asia Minerals anticipates completing these transactions by June 2011.The initial internal reorganization is expected to be completed in March 2011, following which East Asia intends to file preliminary prospectuses with the Canadian securities regulatory authorities for Sangihe Gold, Barisan Gold and East Asia Energy which will contain detailed information on the new companies as well as the terms of the dividends-in-kind and rights offerings.(alex)