Another Canadian junior miner is going the “handshake route” toward prosperity. Tuesday morning.
Vancouver-based East Africa Metals (TSX-Venture:EAM) announced a Share Purchase Agreement with Tibet-based Silk Road Resources Investments for the development and operation of the Adyabo Project’s Mato Bula and Da Tambuk deposits located in Ethopia’s Tigray region.
What it means it that EAM will receive a cash payment of $1.2 million U.S. on closing of the transaction and retain a 30% Net Profit Interest.
Silk Road’s parent will finance 100% of the capital costs, and operate the mine development program and mining operations
EAM will retain the exploration rights to all prospective mineralization on its concession areas outside of the current resource.
CEO Andrew Lee Smith said, “With the Share Purchase Agreement and Joint Venture Contract, East Africa and (Silk Road’s parent) have agreed on terms and are now committed to closing the transaction prior to August 9, 2019, that will see the financing for the development of the Mato Bula and Da Tambuk projects finalized.”
EAM shares approached noon Tuesday up three cents, or 13.6%, to 25 cents, on volume of nearly 49,000 shares.
