East Asia Minerals arranges $250,000 private placement existing shareholder & investment dealer exemption financing

March 27, 2020

East Asia Minerals Corp. has arranged a private placement offering to raise up to $250,000 from the sale of 7,142,857 units at 3.5 cents per unit. Each unit comprises one common share and one share purchase warrant exercisable for a term of two years for the purchase of an additional common share at the price of six cents per common share.

Finders’ fees may be payable to qualified individuals comprising shares, warrants or cash, or any combination thereof.

The offering will be conducted pursuant to available prospectus exemptions, including sales to accredited investors, family members, close friends, and business associates of directors and officers of the corporation, to purchasers who have obtained suitability advice from a registered investment dealer pursuant to the exemption set out in British Columbia Instrument 45-536 (Exemption From Prospectus Requirement For Certain Distributions Through An Investment Dealer) and to existing shareholders of the corporation pursuant to the exemption set out in B.C. Securities Commission B.C. Instrument 45-534 (Exemption From Prospectus Requirement For Certain Trades To Existing Security Holders).

For subscribers utilizing the existing shareholder exemption, the offering is available to all shareholders of the company as at March 26, 2020 (and still are shareholders), who are eligible to participate under the existing shareholder exemption. Any person who becomes a shareholder of the company after the record date is not permitted to participate in the offering using the existing shareholder exemption, but other exemptions may still be available to them. Shareholders who became shareholders after the record date should consult their professional advisers when completing their subscription form to ensure that they use the correct exemption.

There are conditions and restrictions when relying upon the existing shareholder exemption; namely, the subscriber must: a) be a shareholder of the company on the record date (and still is a shareholder), b) be purchasing the units as a principal, that is, for their own account and not for any other party, and c) may not purchase more than $15,000 value of securities from the company in any 12-month period, unless they have first received suitability advice from a registered investment dealer, and, in this case, subscribers will be asked to confirm the registered investment dealer’s identity and employer.

The proposed net proceeds received from the offering after payment of commissions are intended to be used by the company to pay expenses related to the company’s property in Indonesia, settle payables and for working capital for the purposes shown in the included table.

Item                                                    Amount  

Gross proceeds                                        $250,000
Jakarta rent and overhead                               11,200  
Vancouver rent and overhead                             28,000  
Legal expenses                                          28,000  
Environmental meeting and operating licence expenses    35,000  
Accounts payable                                        63,000  
Jakarta wages                                           42,000  
Management fees                                         42,000  
Total                                                 $249,200

Subscribers in all Canadian jurisdictions may utilize the existing shareholder exemption. Existing shareholders resident in countries other than Canada will need to meet local jurisdiction requirements to participate.

Subscribers implementing the investor dealer exemption must reside in one of the following jurisdictions: Alberta, B.C., Manitoba, New Brunswick or Saskatchewan. Subscribers resident in countries other than Canada will need to meet local jurisdiction requirements to participate.

The foregoing transactions are subject to approval of the TSX Venture Exchange.

The company will not be proceeding with the private placement of $327,500 previously announced on Dec. 30, 2019.

About East Asia Minerals Corp.

East Asia Minerals is a dynamic junior gold developer with two assets totalling combined resources of 3.3 million ounces National Instrument 43-101 gold resources in Indonesia, one of the leading gold producer countries in the world. The company plans to advance and permit Sangihe in near term and raise finances for a 1,000-ounce-per-month heap leach operation.

Per:      “Terry Filbert”                       

Terry Filbert, Director

President & CEO

For investor contacts more information, please contact:

Kevin Shum
Investor Relations
647-725-3888 ext 702

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