East Africa Metals Inc. (TSX-V: EAM) has raised $5.2 million from Shandong Tyan Home Co., Ltd. (SSE: 600807) by way of a non-brokered private placement of 20,000,000 units at a price of $0.26 per unit.
As a result of the financing, Shandong Tyan Home owns approximately 14.3% of the outstanding shares of East Africa Metals, becoming the second largest shareholder. Beijing based Sinotech Minerals Exploration Co., Ltd., the largest shareholder, owns 37,788,062 common shares or approximately 26% of the outstanding common shares.
Yongwen Wang, General Manager of Shandong Tyan Home, has joined East Africa Metals’ board of directors.
Proceeds from the private placement will finance ongoing exploration and project development activities at Harvest and Adyabo projects, located in the Tigray region of the Federal Republic of Ethiopia.
In addition to the private placement, Shandong Tyan Home and East Africa Metals also entered into a non-binding letter of intent to provide US $10 million line of credit to support the development of the Terakimti Oxide Gold Project. Alternatively, Shandong Tyan Home will identify a third party to provide or participate in the debt financing.
Jinan, Shandong based Shandong Tyan Home is a holding with business ranging from real estate, mining, finance and venture capital investment.
photo credit: East Africa Metals