- Your investment is at risk. Shareholders reminded to vote prior to January 23, 2018.
- Largest shareholder at over 20%, supports the incumbent Board.
- New management team and Board of Directors have poised the Company for growth in 2018.
VANCOUVER, B.C. January 19, 2018 – East Asia Minerals Corporation (TSXV-EAS) (“East Asia Minerals” or the “Company“) reminds shareholders of the important vote at this year’s annual and special general meeting (the “Meeting”) being held on January 26, 2018.
“At the upcoming Meeting, shareholders will face a contested election for the Board of Directors,” explained Terry Filbert, East Asia Minerals’ CEO and Chairman. “In March 2017, I joined East Asia Minerals as CEO and Chairman, along with a new Board of Directors and management team to lead the Company. Since then, your new team has accomplished more in the last few months than the previous management team and directors had over the past five years. The strategy set by the incumbent Board has preserved and revitalized our assets. However, the dissident nominees pose a threat to this positive momentum.”
Furthermore, the Company is pleased to announce that its largest shareholder holding over 20% of the outstanding shares, Tocqueville Asset Management, is supportive of the renewed management team and Board of Directors. This support is further evidenced by their vote cast in favour of the incumbent Directors.
Background
On December 22, 2017, the Company received notice from Messrs. Vishal Ghupta and Patrick Cronin, stating their intentions to put forward five dissident director nominees (the “Dissident Nominees“) for election at the upcoming Meeting to replace the incumbent board. Shareholders should be make an informed decision before voting and note the following:
- The proposed five dissident nominees has been reduced to four and Mr. Cronin is no longer a dissident director nominee. This is most likely due to the Company having uncovered and disclosing crucial information to Shareholders that Cronin is currently serving a 10 year ban sanctioned by the Canadian securities regulatory authority, the Mutual Fund Dealers Association, for problematic actions. Although Mr. Cronin is no longer a dissident nominee, he is still leading the dissident campaign with Mr. Ghupta.
More startling details about the Dissident Nominees can be found in the letter to shareholders dated January 15, 2018 that was recently mailed out to shareholders. The letter to shareholders can also be found on the Company’s website at www.eastasiaminerals.com.
Dissidents’ Faulty Business Plan
The Sangihe and Miwah Projects
The dissident’s state they will immediately stop all activities and expenditures on the Company’s Sangihe project and focus solely on the Miwah project should the Dissident Nominees be elected. This statement only emphasises the lack of knowledge the Dissident Nominees have regarding the Company and the intricacies involved in its projects in Indonesia.
Management and the Board of Directors aim to develop both the Sangihe and Miwah projects. When the new management team and Board of Directors started, the Sangihe asset was within a few weeks of being lost as a result of unpaid and overdue Dead rent. This would have been devastating to the Company due to Sangihe being the only asset that can provide revenue and profit in the near term, as well as provide a much larger resource once it is completely explored and drilled. With regards to the Miwah project, the local Aceh government had deemed it abandoned by the former management due to non payment of fees, no filing of any reports required by the Aceh government since 2015, and the former management’s unresponsiveness to a legal issue brought forth by a government official in that same year. Since joining in March 2017, the current management team has been working on repairing the Company’s relationship with the Indonesian government and has started to establish good will with members of the Aceh and Federal governments, in order to develop a path to bring the Miwah project current and to show the Company’s sincerity in making Miwah a success. Demonstrating that the Company can bring the Sangihe project into production is imperative in convincing those officials that East Asia Minerals is no longer a “talk only” company but a real and profitable mining company that does as it promises. To abandon the Sangihe project as the dissidents propose, is to also abandon the Miwah project. Detailed information regarding the projects and the 2018 work plan can be found in the investors presentations on the Company’s website at www.eastasiaminerals.com.
No Succession Plan
Additionally, the Dissident Nominees have admitted to having no succession plan should they take the Company over and state that they “have made no definitive determinations as to the composition of the management team…”. Shareholders should be concerned that with no leader and no management team to helm the Company, the great progress accomplished to date, may start back at ground zero. Shareholders should not have to settle for an uncertain future with an uncertain and unproven team.
Vote FOR the Renewed and Experienced Board of Directors Who Are Delivering
The renewed Board of Directors and management team have placed the company in a position to grow and they have been able to accomplish more in the last few months than the previous management team and directors had over the past five years.
The Company is at the cusp of becoming a profitable producer in 2018 and adding value to its shareholders’ investment. Therefore, now is not the time for change. Vote FOR the recently renewed Board of Directors who has and will continue to steward the Company forward.
Shareholders are encouraged to vote online or by telephone by using management’s WHITE proxy, prior to the deadline on January 24th at 10 a.m. (Vancouver Time).
Further Information or Assistance
East Asia Minerals has retained Laurel Hill Advisory Group (“Laurel Hill”) as their Proxy Solicitation Agent. For more information or if you require assistance with voting, please contact Laurel Hill at:
Laurel Hill Advisory Group
North America Toll Free: 1-877-452-7184
Collect Calls Outside North America: 1-416-304-0211
Email: assiatance@laurelhill.com
or
Mark Sommer
East Asia Minerals Corporation
Telephone: 1-604-684-2183
Email: info@eastasiaminerals.com
The Company cautions readers that the any production decision made by the Company will not be based on a NI 43-101 feasibility study of mineral reserves that demonstrates economic and technical viability and as such, there may be involved increased uncertainty and various technological and economic risks outlined in the “forward looking statement” below
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Certain statements in this News Release, which are not historical in nature, constitute “forward looking statements” within the meaning of that phrase under applicable Canadian securities law. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company’s performance or events as of the date hereof. These statements reflect management’s current assumptions and expectations and by their nature are subject to certain underlying assumptions, known and unknown risks and uncertainties and other factors which may cause actual results, performance or events to be materially different from those expressed or implied by such forward looking statements. Those risks include the interpretation of drill results; the geology, grade and continuity of mineral deposits; the possibility that future exploration, development or mining results will not be consistent with our expectations; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs. Forward-looking statements should not be construed as investment advice. Readers should perform a detailed, independent investigation and analysis of the Company and are encouraged to seek independent professional advice before making any investment decision. Accordingly, readers should not place undue reliance on any forward-looking statement. Except as required by applicable securities laws, the Company disclaims any obligation to update or revise any forward looking statements to reflect events or changes in circumstances that occur after the date hereof.