East Africa Metals Announces Engagement of Marketing Firm BullVestor Medien GmBH and Extension of Non-Brokered Private Placement
Vancouver, British Columbia – March 4, 2024 – East Africa Metals Inc. (TSX-V: EAM and Frakfurt: EA1) (“East Africa” or the “Company”) is pleased to announce that it has engaged BullVestor Medien GmBH and its general manager Helmut Pollinger, both arm’s-length parties to the Company, to provide digital marketing services to the Company commencing on April 5, 2024, and until exhaustion of the budget. The services will include the creation of content, strategic planning, digital advertisement placement, and overseeing progress and results of digital campaigns. In consideration for providing the services, the Company has budgeted a total of CAD$45,000 and advanced the payment in full. BullVestor, located in Austria, is a communications agency focused on investors and potential investors in Europe.
Consideration offered to BullVestor does not include any securities of the Company. Aside from this engagement, the Company does not have any relationship with BullVestor or Mr. Pollinger. Mr. Pollinger owns 1,480,000 shares of East Africa, purchased more than 24 months ago, and Mr. Pollinger holds 200,000 stock options of the Company. BullVestor and Mr. Pollinger have agreed not to sell any securities of the Company during the promotional campaign. The Company’s agreement with BullVestor remains subject to acceptance by the TSX Venture Exchange (“TSX-V”).
The Company also announces that it has received TSX-V approval to extend the closing of its non-brokered private placement (the “Private Placement”), announced on March 4, 2024, of up to 10,000,000 units at a price of CAD$0.10 per unit for aggregate gross proceeds of CAD$1,000,000, subject to approval of the TSX-V. Each unit is comprised of one common share and one share purchase warrant. Each warrant entitles the holder to acquire a common share at a price of CAD$0.20 for a period of up to three years. The net proceeds will be used by the Company for general corporate and working capital purposes. All securities issued will be subject to a four-month hold period from the date of issuance. The Private Placement is expected to close on or around May 6, 2024, or such earlier date as may be determined by the directors of the Company. The Company will provide updates respecting the Private Placement as warranted.
About East Africa Metals
The Company’s principal assets include a 30% Net Profits Interest in the Mato Bula and Da Tambuk mines (collectively “Adyabo Property”) and a 70% project interest in the Harvest polymetallic VMS Exploration Project in the Tigray Region of Ethiopia. In addition, the Company has a 30% Net Streaming Interest in the Magambazi Mine in the Tanga Region of Tanzania.
EAM has invested US$66.8M in African exploration since 2005 and identified a total of 2.8 million ounces of gold and gold-equivalent resources representing an average discovery cost per ounce of US$24.
More information on the Company can be viewed at the Company’s website: www.eastafricametals.com
On behalf of the Board of Directors:
Andrew Lee Smith, P.Geo., CEO
For further information contact:
Nick Watters, Business Development
Telephone: +1 (604) 488-0822
Email: investors@eastafricametals.com
Website: www.eastafricametals.com
Cautionary Statement Regarding Forward-Looking Information
This news release contains “forward-looking information” within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “anticipate”, “believe”, “plan”, “expect”, “intend”, “estimate”, “forecast”, “project”, “budget”, “schedule”, “may”, “will”, “could”, “might”, “should”, “indicate” or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by East Africa as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of East Africa to be materially different from those expressed or implied by such forward-looking information, including but not limited to: timing of receipt of mining permit; timing of mining development; projected heap leach recoveries ; early exploration; the closing of the agreement with the exploration and development company to advance the Magambazi Project or identify any other corporate opportunities for the Company; mineral exploration and development; metal and mineral prices; availability of capital; accuracy of East Africa’s projections and estimates, including the initial mineral resource for the Adyabo, Harvest and Magambazi Properties; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; foreign taxation risks; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined, as well as those risk factors set out in in East Africa’s management’s discussion and analysis for the three months and nine months ended September 30, 2018 and for the year ended December 31, 2017, and East Africa’s listing application dated July 8, 2013 Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. The contained gold, copper and silver figures shown are in situ. No assurance can be given that the estimated quantities will be produced. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the timely closing of the financing; the timely closing of the Handeni Property definitive agreement; the price of gold, silver, copper and zinc; the demand for gold, silver, copper and zinc; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; the renewal or extension of exploration Licenses; the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although East Africa has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not update or revise forward looking information even if new information becomes available unless legislation requires the Company do so. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.
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.