East Asia Minerals Advised of Potential Litigation
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/09/11 -- East Asia Minerals Corporation (TSX VENTURE: EAS) wishes to inform shareholders that it has been advised that East Asia Minerals, PT Linge Mineral Resources ('PTLMR') and PT Gayo Mineral Resources ('PTGMR') have been named as defendants and Barisan Gold Corp. ('BGC') as a co-defendant in a civil case claim filed by PT Atlas Mineral Exploration ('PTAME') in the Central Jakarta District Court. PTAME is an Indonesian company that owns a 12% direct equity interest in each of PTLMR and PTGMR. BGC is the majority shareholder of PTLMR and PTGMR with an 80% direct equity interest in each company. BGC was spun-out from East Asia Minerals to its shareholders of record on July 21, 2011 by way of dividend-in-kind. PTAME is majority owned by a relative of a previous consultant to EAMC who left EAMC in October 2010.
PTAME approached PTGMR and PTLMR in recent months asking that its 12% equity interest in both companies be acquired. When BGC and PTAME could not agree on reasonable terms, including a price fair and reasonable to BGC for the sale of the interests held by PTMAE, PTAME filed this action.
The claim filed by PTAME purports to challenge the asset transfer process by which East Asia Minerals transferred its 80% direct equity interest in PTLMR and PTGMR to its wholly owned subsidiary, BGC. East Asia Minerals strongly believes the claims are clearly without merit and intends on defending against this frivolous lawsuit vigorously. The Company has received legal advice confirming that the transfer of PTLMR and PTGMR from East Asia Minerals to BGC was legally executed in accordance with Indonesian law. East Asia Minerals, BGC and its subsidiaries intend to file their own claims and seek the maximum damages from PTAME under Indonesian law in response to this claim.
The defendants and co-defendant have engaged the services of Fredrik J. Pinakunary Law Offices and Bahar & Partners as Indonesian legal counsel with regards to this matter. The first hearing in this case is expected in 2-3 months. We will update shareholders as we receive more detailed information on the matter.
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About East Asia Minerals Corporation
East Asia Minerals (TSX VENTURE: EAS) is an Asian-based, Canadian mineral exploration company with gold and copper exploration properties in Indonesia, and uranium exploration properties in Mongolia. In Indonesia the Company has a 70 to 85% interest in three advanced gold and gold-copper properties located in Aceh Province, Sumatra, and Sangihe Island, North Sulawesi. The Company owns seven uranium properties, including the advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, and two phosphate properties in Mongolia. East Asia currently has 84,221,582 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol 'EAS'.
Caution Regarding Forward Looking Statements
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. When used in this News Release, such statements use words such as 'may', 'will', 'expect', 'intend', 'anticipate' and other similar terms. These statements reflect management's current assumptions and expectations regarding future results, performance or events as of the date hereof 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. Forward looking statements involve significant risks and uncertainties and should not be read as guarantees of future or performance results. Accordingly, readers should not place undue reliance on any forward looking statement.
Forward looking statements are based on assumptions, estimates, analysis and opinions of management made in light of its experience and its perception of trends, current conditions and expected developments, as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. The Company believes that the assumptions and expectations reflected in such forward looking statements are reasonable. Assumptions have been made regarding, among other things, the Company's future exploration and development activities; timely receipt of third party or regulatory approvals; and the Company's ability to obtain financing as and when required and on reasonable terms. Readers are cautioned that the foregoing list is not exhaustive of all factors and assumptions which may have been used and that these factors and assumptions may be incomplete or incorrect.
Forward looking statements are also subject to known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from those expressed or implied by such forward looking information. Those risks include 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; commodity and currency price fluctuation; failure to obtain adequate financing; regulatory, permitting and licensing risks; and general market and mining exploration risks.
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. 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.
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.
Contacts:
East Asia Minerals Corporation
Mark Patchett
Investor Relations Vancouver
1 604 684.2183
patchett@eaminerals.com
www.eaminerals.com