EAST ASIA MINERALS CORP. ANNOUNCES SHARES FOR DEBT TRANSACTION
East Asia Minerals Corp. has approved the settlement of up to $415,000 of debt through the issuance of common shares of the company. Pursuant to the debt settlement, the company would issue up to 6,916,667 common shares of the company at a deemed price of six cents per share to certain creditors of the company, including certain directors and officers.
The purpose of the debt settlement is to preserve cash and improve the company’s balance sheet. Terry Filbert, chief executive officer, stated that, “The settlements are also a strong indicator of the continued support and enthusiasm by the officers, directors, consultants have in the future of the company.”
The issuance of the shares to the creditor is subject to the approval of the TSX Venture Exchange. All securities issued will be subject to a four-month hold period which will expire on the date that is four months and one day from the date of issue.
As certain insiders participated in the debt settlement, it is considered to be a related-party transaction under Multilateral Instrument 61-101. All of the independent directors of the company, acting in good faith, considered the transactions and determined that the fair market value of the securities being issued to insiders and the consideration being paid is reasonable. The company intends to rely on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(a) and 5.7(a).
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 of National Instrument 43-101 gold resources in Indonesia, one of the leading gold producer countries in the world.
Per: “Terry Filbert”
Terry Filbert, Director
President & CEO
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