East Asia Minerals has provided its shareholders with an update on the Indonesian Feasibility Study (IFS) and the credit facility for up to US$15 million.
East Asia Minerals has completed and submitted the IFS on the Sangihe project to the Indonesian Ministry of Energy and Mineral Resources (MEMR). It is anticipated that once approved, construction of the mining facilities and infrastructure will begin at the Sangihe Project before the end of 2018.
The IFS is not a feasibility study as defined by the Canadian Institute of Mining, Metallurgy and Petroleum and as required by National Instrument 43-101 (“NI 43-101”) but is required under Indonesian law in order to obtain a license to construct a production facility.
East Asia Minerals has also successfully completed the legal documents required for the credit facility agreement, which was announced at the beginning of June this year.
East Asia Minerals COE, Terry Filbert, said that these two accomplishments put Asia Minerals one step closer to generating revenue and positive cash flow.
“The credit facility will enable us to begin exploration and infill drilling of the Binebase/Bawone corridor to increase both resources and reserves, as well as for general working capital”, said Mr Filbert.
The Sangihe gold-silver-copper project is located on the island of Sangihe off the northern coast of Sulawesi and has an existing National Instrument 43-101 inferred mineral resource of 114,700 indicated ounces and 105,000 inferred ounces of gold. The company’s 70 per cent interest in the Sangihe mineral tenement contract of work is held through PT Tambang Mas Sangihe (PT TMS). The remaining 30 per cent interest in PT TMS is held by three unaffiliated Indonesian corporations. The term of the Sangihe contract of work agreement is for 30 years upon commencement of the production phase of the project.