East Asia announces Existing Shareholder and Investment Dealer Exemptions for Financing
Vancouver, March 27, 2020 - East Asia Minerals Corp. (the "Company") (TSXV:EAS) (OTC:EAIAF) is pleased to announce a private placement offering to raise up to $250,000 from the sale of 7,142,857 units at $0.035 per unit. Each unit is comprised of one (1) common share and one (1) share purchase warrant exercisable for a term of two years for the purchase an additional common share at the prices of $0.06 per common share. Finder's fees may be payable to qualified individuals comprised of 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 BC Instrument 45-536 (Exemption from prospectus requirement for certain distributions through an investment dealer) (the "Investment Dealer Exemption") and to existing shareholders of the Corporation pursuant to the exemption set out in British Columbia Securities Commission BC Instrument 45- 534 (Exemption from prospectus requirement for certain trades to existing security holders) (the "Existing Shareholder Exemption").
For subscribers utilizing the Existing Shareholder Exemption, the Offering is available to all shareholders of the Company as at March 26, 2020, (the "Record Date") (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 offerings 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 advisors 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 are a shareholder), b) be purchasing the Units as a principal, i.e. 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 twelve 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 for to pay expenses related to the Company's property in Indonesia, settle payables and for working capital the following purposes:
| ITEM | AMOUNT |
| Gross Proceeds | $250,000 |
| Jakarta rent & overhead | 11,200 |
| Vancouver rent & overhead | 28,000 |
| Legal expenses | 28,000 |
| Environmental meeting & 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, British Columbia, Manitoba, New Brunswick and 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 announces that it will not be proceeding with the private placement of $327,500 previously announced on December 30, 2019.
ABOUT EAST ASIA MINERALS CORPORATION
East Asia Minerals is a dynamic junior gold developer with two assets totaling combined resources of 3.3 million ounces NI 43-101 gold resources in Indonesia, one of the leading gold producer countries in the world. EAS plans to advance and permit Sangihe in near term and raise funds for a 1,000 ounces per month heap leach operation. With cashflow from operations the plan is to further expand resource through drilling and update the Conpany's current resources. 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.
East Asia has a team of mining professionals in North America and locally in Indonesia with extensive experience in operating small scale gold and coal assets, working diligently to develop it's highly prospective project portfolio.
Frank Rocca, BAppSc.(Geology), MAusIMM, MAIG, Chief Geologist of East Asia Minerals Corp. is the Qualified Person as defined under NI 43-101 who has reviewed and approves the content of this release.
Per: "Terry Filbert"
Terry Filbert, CEO and Director
+1,206-890-8285
For investor contacts more information, please contact:
Kevin Shum
Investor Relations
info@eastasiaminerals.com
647-725-3888 ext 702
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
Forward-Looking and Cautionary Statements
This EAST ASIA MINERALS News Release may contain certain "forward-looking" statements and information relating to East Asia that is based on the beliefs of East Asia management, as well as assumptions made by and information currently available to East Asia management. Forward-looking information is often, but not always, identified by the use of words such as "seek", "anticipate", "plan", "continue", "planned", "expect", "project", "predict", "potential", "targeting", "intends", "believe", "potential", and similar expressions, or describes a "goal", or variation of such words and phrases or state that certain actions, events or results "may", "should", "could", "would", "might" or "will" be taken, occur or be achieved. Such statements include, but are not limited to, statements with respect to the expected use of proceeds of the Private Placement.
Such forward-looking information involves known and unknown risks and assumptions, including with respect to, without limitations, exploration and development risks, expenditure and financing requirements, title matters, operating hazards, metal prices, political and economic factors, competitive factors, general economic conditions, relationships with vendors and strategic partners, governmental regulation and supervision, seasonality, technological change, industry practices, and one-time events. Should any one or more risks or uncertainties materialize or change, or should any underlying assumptions prove incorrect, actual results and forward-looking statements may vary materially from those described herein. East Asia does not assume the obligation to update any forward-looking statement.
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