East Asia Minerals has received final regulatory approvals in Indonesia to complete the transfer of its equity interest in the Barisan I, Barisan II and Takengon projects to its spin-off subsidiary Barisan Gold.
Barisan Gold will become a gold-copper porphyry exploration company focused on Indonesia. It will initially hold East Asia Minerals' 80% equity interest in the Barisan gold-copper porphyries, including the Abong epithermal gold deposit, and East Asia’s 75% equity interest in the Takengon gold-copper project, all in Aceh Province, Indonesia.
The Upper Tengkereng prospect at Barisan returned an interval of 58.9 metres @ 1.17 grams/tonne gold and 0.48% copper at the end of hole within a 691-metre fully mineralized hole grading 0.39 grams/tonne gold and 0.30% copper.
East Asia Minerals continues to work diligently with authorities in Indonesia and Mongolia to complete the transfer of assets from East Asia Minerals to Sangihe Gold and East Asia Energy respectively. It is spinning off these assets in order to concentrate on the Miwah project in Aceh Province.
Meanwhile, East Asia has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets which will see the underwriters purchase more than 3.4 million shares for proceeds of $10 million. The company has also granted the underwriters an option to purchase up to an additional 15% of the offering.
The net proceeds of the offering will be used primarily for exploration and development at the Miwah property and for general working capital purposes. The offering is scheduled to close on or about July 13.