East Asia Minerals Corp. Announces Shares for Debt Transaction

2020-06-04 / @thenewswire

(TheNewswire)

June 4 - TheNewswire - Vancouver, BC - East Asia Minerals Corporation. (the “Company” or “EAS”) (TSXV:EAS) (OTC:EAIAF) reports that its board of directors has approved the settlement of up to $415,000 of debt through the issuance of common shares of the Company (the “Debt Settlement”). Pursuant to the Debt Settlement, the Company would issue up to 6,916,667 common shares of the Company (the “Shares”) at a deemed price of $0.06 per Share to certain creditors of the Company, including certain directors and officers (the “Creditors”)

The purpose of the debt settlement is to preserve cash and improve the Company's balance sheet. Terry Filbert, CEO 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. 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 – Protection of Minority Security Holders in Special Transaction (“Mi-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 section 5.5(a) and 5.7(a).

EAST ASIA MINERALS CORPORATION

Per: “Terry Filbert”

Terry Filbert, Director

President & CEO
info@eastasiaminerals.com
+1-206-890-8285

For investor contacts more information, please contact:

Kevin Shum

Investor Relations

kevin@jeminicapital.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.

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. These statements include, but are not limited to, statements or information concerning future work programs, results and timing of any work programs, the Company’s performance or events as of the date hereof. These statements reflect management’s current assumptions and expectations 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. Those risks include the interpretation of drill results; 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, recovery rates, refinery costs, and other relevant conversion factors, permitting and licensing risks; general market and mining exploration risks and production and economic risks related to design and engineering, manufacturing, technological processes and test procedures and the risk that the project’s output will not be salable at a price that will cover the project’s operating and maintenance costs. 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. Accordingly, readers should not place undue reliance on any forward-looking statement. 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.