East Asia Minerals Corporation. (the “Company” or “EAS”)(TSX-V) reports that its board of directors has approved the settlement of up to $782,723 of debt through the issuance of common shares of the Company (the “Debt Settlement”). Pursuant to the Debt Settlement, the Company would issue up to 13,045,380 common shares of the Company (the “Shares”) at a deemed price of $0.06 per Share to certain creditors of the Company, including certain directors and officers (the “Creditors”)
The issuance of the Shares to the Creditors is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a four month hold period which will expire on the date that is four months and one day from the date of issue.
As certain insiders participated in the Debt Settlement, it is considered to be a “related party transaction” under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transaction (“Mi-61-101”). All of the independent directors of the Company, acting in good faith, considered the transactions and determined that the fair market value of the securities being issued to insiders and the consideration being paid is reasonable. The Company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in section 5.5(a) and 5.7(a).
EAST ASIA MINERALS CORPORATION
On behalf of the Board of Directors of East Asia Minerals,
Chairman & CEO
For further information, contact:
Or visit the Company’s website at www.eastasiaminerals.com
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policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.