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| | July 27, 2007
East Asia Minerals Signs Agreement With CFMM (A Subsidiary Of Areva NC) To Sell Mongolia Ooshiin Govi Uranium Property For CAD$83Million
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| | For Immediate release, July 27, 2007 TSXV: EAS
VANCOUVER, B.C. -- Friday, July 27, 2007 -- East Asia Minerals Corporation (TSXV-EAS) is pleased to announce it has signed an agreement to sell the Ooshiin Govi uranium property to Compagnie Française de Mines et Metaux ("CFMM", a subsidiary of Areva NC) for a cash payment of CAD$83 million. This will be facilitated through the sale of its wholly owned Mongolia subsidiary, EAM Energy LLC (EAME). The transaction, which is subject to shareholder approval, will also include the Bayan Uul, Elgenii, Ikh Khet and Airag-1 uranium tenements (together with Ooshiin Govi forming the "Assets"). Details of the properties can be found on the East Asia web site at www.EAminerals.com and in previous news releases. In connection with the offer, certain shareholders including directors and officers of East Asia have entered into irrevocable lockup agreements with CFMM pursuant to which they have agreed to vote all of their East Asia shares in favour of the offer, representing approximately 43.8 per cent of the issued and outstanding East Asia shares, subject to certain exceptions.
The proposed transaction with CFMM has the full support of the Company's board of directors and management team, who recommend that the East Asia Mineral's shareholders vote in favor of the assets sale. Should shareholder approval be forthcoming, it is the Company's intention to dividend out at least 85% of the after-tax proceeds of sale to registered shareholders of East Asia. The final calculated dividend will be subject to the extent to which presently outstanding dilutives are exercised, net corporate tax considerations and the Board of Directors' determination of the Company's future capital requirements. A shareholders meeting to vote on this transaction is scheduled for September 5, 2007.
"The Company views CFMM's proposed purchase of the Ooshiin Govi tenements, for more than the current market capitalization of East Asia Minerals Corporation, as absolute validation of East Asia's ability to capture opportunities and maximize shareholder value" stated Michael Hawkins, East Asia Minerals' President. "The preliminary nature of Ooshiin Govi, coupled with results from recent drilling, more appropriately suits the time horizon, risk tolerance and resources of a senior producer, such as Areva. We believe that the proposed transaction provides an optimal return of value to the shareholders, and the opportunity to continue receiving value through a strong acquisition and exploration strategy. We also believe that a purchase of this magnitude, by one of the world's leading uranium companies, supports the Company's positive assessment of its remaining uranium portfolio, which includes the Ingiin-Nars, Ulaan Nuur, and Enger properties. The first two of these properties possess historical resources, and Enger returned very strong drill results from our exploration program last year. Hence we consider them to be exceptionally strong assets with which to continue the Company's uranium strategy."
Haywood Securities Inc. is acting as financial adviser to East Asia and Gowling Lafleur Henderson LLP is its legal adviser. The financial adviser to CFMM is RBC Capital Markets Inc. and legal advisor is Blake, Cassels & Graydon LLP.
Retained Mongolian Uranium Assets
The Mongolia uranium assets retained by East Asia will be drilled later this summer, commencing at the Company's 100% owned Ingiin-Nars property (July 3, 2007 news release). The Ingiin-Nars Deposit lies south of and continues northeast into the East Asia property, and contains a Soviet-era, P1 category drilled resource of approximately 1,000 tonnes (2.2 million pounds) of contained uranium. The grade averages 0.042% U, at a cut off grade of 0.02% U, representing a deposit of approximately 2.4 million tonnes. The average grade of non-category drill intercepts is 0.052% U. The Ingiin-Nars Deposit continues northeast into the East Asia property where it remains open along strike. East Asia drilling will be designed to quantify the portion of the Deposit that lies within the Company's property, and to determine the full extent of the strike distance. Additionally, the mineralization remains open to the immediate northeast of the drilled resources where Soviet-era data suggests the presence of another mineralized body that may be as large, or larger, than the drilled Ingiin-Nars Deposit.
East Asia owns 100% of the Ulaan Nuur property (May 3, 2007 news release), a partially defined, potentially significant deposit of stratiform sandstone-hosted uranium mineralization. Limited drilling during the Soviet era outlined mineralization ranging in thickness from 0.1 to 3.5 metres and grading between 0.03% and 0.184% U. The mineralization was not fully defined nor closed off. The Soviets calculated a projected resource (P2 category) of 10,000 tonnes (22 million pounds) of contained uranium for the Ulaan Nuur deposit. This data indicates an average grade of 0.049% U, representing a deposit of approximately 20 million tonnes. The historic data also provides evidence that the Project contains a potential ISL (in situ leach) environment.
The Company's 100% owned Enger property (June 26 and July 6, 2006 news releases) includes a number of uranium mineralized zones that were identified from Soviet information and range in thickness from 1.7 to 6 metres, and grade from 0.056% to 0.19% U3O8 (high of 0.65m of 0.549% U3O8). Results from the 2006 East Asia drill program significantly improved on grades and widths of the mineralization reported by the Soviets. Intercepts included 2.5 metres of 0.410% U3O8 metres in hole ENDD003, 2.5 metres of 0.232% U3O8 in hole ENDD002, 1.0 metre of 0.086 U3O8 in hole ENDD004, and 13.5 metres of 0.108% U3O8 in hole ENDD005. The mineralization was not closed off. As part of the proposed transaction Areva has been granted the metal marketing rights of both the Enger and Ulaan Nuur projects.
Indonesian Exploration Update
In Indonesia, the company continues to move ahead with the exploration of its highly prospective copper-gold portfolio. Drilling will commence later this summer at the Sangihe property where historic work resulted in several significant drill intercepts including 91.3 metres starting at 29 metres with 2.45g/t gold, 0.42% copper and 12.0g/t silver, and trench results of up to 34.8g/t gold over 14 metres (July 17, 2007 news release).
Lionel Martin, P.Geo, the designated QP within the meaning of 43-101, has reviewed and approves the content of this release. EAS has not verified the classification of the historic resource references and is not treating them as NI 43-101 defined resources verified by a QP. Although the historical references of resource potential are relevant to recognizing the potential of the Ingiin-Nars and Ulaan Nuur Properties, they should not be relied upon.
About East Asia Minerals Corporation
East Asia Minerals is an Asian-based, Canadian mineral exploration company with uranium, gold and copper assets in Mongolia and Indonesia. The Company owns seven uranium properties, highlighted by the Ooshiin Govi tenements, and a 75% interest in the Khok Adar copper oxide discovery, in Mongolia. In Indonesia, it has a 70 to 85% interest in five advanced gold and gold-copper projects located in Aceh Province in Sumatra and North Sulawesi. East Asia currently has 43,661,912 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol "EAS".
Forward Looking Statements - This News Release contains forward looking information within the meaning of the Ontario Securities Act and the Alberta Securities Act, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to the interpretation of drill results and the estimation of mineral resources and reserves, the geology, grade and continuity of mineral deposits, the possibility that future exploration, development or mining results will not be consistent with our expectations, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including uranium, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
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The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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FOR FURTHER INFORMATION, visit the Company's website at www.EAminerals.com, or contact:
Michael Hawkins, President
Vancouver
T: +1-778-997-2183
E: [email protected]
Nick Kohlmann, Corporate Communications
Toronto
T: +1-416-792-8734
E: [email protected] |
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| | You can view the Previous News Releases item: Tue Jul 17, 2007, East Asia Minerals Expands Sangihe and Tangse Targets
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