East Africa Metals updates financing
Friday, Dec 15, 2017
East Africa Metals Inc. is pleased to provide the following update on the financing announced November 10, 2017.

Private Placement

The Company and Luck Sky Resources Investment Limited (“LS”), an affiliate of Luck Winner Investment Limited, have entered into a binding subscription agreement for the purchase of 52,100,000 units at a price of $0.26 per unit for aggregate gross proceeds of approximately C$13,550,000.  Each unit will consist of one common share and one-half of one share purchase warrant, with each whole warrant exercisable for $0.45 and expiring 24 months from closing.

The securities issued under the private placement will be subject to a hold period of four months.  The proceeds will be used to continue exploration programs on the Company’s projects in Ethiopia and general working capital.

The Company plans to close on 7,700,000 units for gross proceeds of C$2,002,000 from LS around December 27, 2017.

Closing of the remaining 44,400,000 units for gross proceeds of C$11,544,000 are subject to certain conditions, including but not limited to, disinterested shareholder approval of the creation of a new control person and approval of the TSX Venture Exchange.  Upon completion of the private placement for 52,100,000 units, LS will own approximately 26.0% of the Company’s outstanding shares (34.5% on a diluted basis).

The Company will no longer be seeking a US$2,000,000 loan from LS.

For more information, please visit: http://www.eastafricametals.com

For additional information on this project, please visit our ProjectsOGP database

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