East Asia Minerals announces acquisition of 50% of Carbon Conservation Pty Ltd.
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VANCOUVER, B.C. — Tuesday, May 3, 2011 — East Asia Minerals Corporation (TSXV-EAS) wishes to announce that it has entered into a Memorandum of Understanding (the “MOU”) with Carbon Conservation Pty Ltd. (”CC”), a corporation based in Australia, for the purchase of up to 50% equity interest in CC. Under the MOU, the Company will pay a total of US$500,000 and issue 2,500,000 shares to CC as follows Cash
1) US$250,000 within 5 days of execution of the MOU, subject to BOD approval, and,
2) US$250,000 within 5 days of execution of the Formal Agreement.
Shares
Subject to any necessary TSX Venture Exchange approval, 2,500,000 shares shall be issued and held by a 3rd party escrow agent or trust account and released to CC in 4 equal tranches, each tranche being related to a specific project milestone.
In addition, the Company will support the continued maintenance and preservation of the forests, communities and biodiversity in the conservation area with an emphasis on the conservation areas surrounding the Miwah project. The Company sees this as a way of diverting revenue generated from the Miwah project into Acehnese communities, as well as helping to preserve unique Aceh ecosystems.
CC is a high profile company currently involved in the internationally recognised UluMasen Ecosystem Carbon Conservation project in the Aceh Province of Indonesia. The conservation project was the world’s first carbon project to achieve validation under the Climate Community and Biodiversity Alliance Standards for its program for reduced emissions from deforestation and degradation and is being developed in conjunction with the Aceh provincial government and various conservation non-governmental organisations. It is designed to preserve over 700,000 hectares of Aceh’s forests and as a result create carbon offsets and biodiversity offsets which can be sold in the growing world market for carbon credits. As more and more jurisdictions adopt a “cap and trade” system to deal with carbon emissions, the creation of carbon credits is becoming a huge industry and can be used to generate economic returns for Aceh’s forestry assets. Working with CC the Company aims to create the greenest mining operation and pioneer Aceh Green Gold in line with the Governor of Aceh’s vision for a Green Aceh by offsetting the impact of development of its Miwah project, and other projects in Aceh province, amongst other things.
Through the acquisition of a 50% equity interest in CC, the Company will develop a “green” mining project which will use carbon and biodiversity offsets and the latest in environmentally friendly mining practices. In the process, the Company will participate in developing a “green” brand for its Miwah project which will potentially allow it to command a premium for its product in the market as well as to potentially facilitate a smoother process for approval of, and support for, mining permits. The Company notes that there are precedents of large retail jewellers boycotting gold taken from mines that are not engaged in environmentally friendly practices, or that extract gold from environmentally sensitive areas.
CC’s assets include the sales and marketing rights for the carbon credits created under the UluMasen Ecosystem Carbon Conservation project as well as the purchase and sale agreement with Rio Tinto Aluminum for the carbon credits created under its deforestation project in Queensland, Australia. It also holds the development rights for an avoided deforestation project and biomass energy project in the Gabon Economic Zone.
CC is a globally recognised green brand and the acquisition of a 50% equity interest in CC will assist in the development of making the Company truly sustainable in its corporate culture and will assist in the development of the Company’s Miwah project as well as create added value for all of its future mining projects.
In commenting on the deal between CC and East Asia Minerals Corporation, Dorjee Sun, the CEO of CC, and one of Time Magazines Environmental Heroes of the Year 2009, said “This is a truly innovative and ground breaking tie up. The Aceh Governor’s Aceh Green Economic Development plan heralded exactly this type of cutting edge sustainable industrial scale project. All companies operating in extractive industries need to go above and beyond the local regulations to truly be world class in environmental and community concerns. This step by East Asia Minerals Corporation is indicative of the Company management’s deep commitment to being the most sustainable mining exploration company in the world. By proactively engaging with CC, the Company is being pragmatic by increasing its commitment and awareness of all aspects of sustainable corporate practices which will lead to greater success rates, profitability and eventually greater shareholder returns on its operations globally and in Aceh”.
About East Asia Minerals Corporation
East Asia Minerals (EAS-TSXV) 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 six 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 77,612,372 shares outstanding. Its shares are listed for trading on the TSX Venture Exchange under the symbol “EAS”.
Forward Looking Statements - This News Release contains forward looking information within the meaning of the British Columbia Securities Act, the Ontario Securities Act and the Alberta Securities Act, which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking statements, including, without limitation, risks and uncertainties relating to 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, metal recoveries, accidents, equipment breakdowns, title matters and surface access, labour disputes or other unanticipated difficulties with or interruptions in production, the potential for delays in exploration or development activities or the completion of new or updated feasibility studies, the inherent uncertainty of production and cost estimates and the potential for unexpected costs and expenses, commodity price fluctuations (including uranium, fuel, steel and construction items), currency fluctuations, failure to obtain adequate financing on a timely basis and other risks and uncertainties. Should one or more of these risks and uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in forward-looking statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. The words anticipate, believe, estimate and expect and similar expressions, as they relate to us or our management, are intended to identify forward looking statements relating to the business and affairs of the Company. Except as required under applicable securities legislation, we undertake no obligation to publicly update or revise forward-looking statements, whether as a result of new information, future events or otherwise.
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.
FOR FURTHER INFORMATION, visit the Company’s website at http://www.eaminerals.com/, or contact:
Michael Hawkins, President and CEO Vancouver T: +1-604-684-2183 E:
Nick Kohlmann, Corporate Communications Toronto T: +1-416-792-8734
Mark Patchett, Investor Relations Vancouver T: +1-604-637-8154 E:
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