East Africa Metals and Luck Winner fail to agree on Ethiopian projects financing

By analyst

By Valentina Ruiz Leotaud

Vancouver-based East Africa Metals (TSX-V:EAM) revealed that its previously announced Ethiopian Project Financing Memorandum of Understanding with Luck Winner Investment Limited failed to materialize.

In a press release, East Africa said that “despite the best efforts of both parties, negotiations failed to define a viable transaction that would be in the best interests of East Africa shareholders and Luck Winner.”

The firm, however, states that it has initiated discussions with a number of interested parties for the financing of its projects in Ethiopia and in particular the Terakimti Oxide Gold Project, an open-pit conventional mine located in the Tigray National Regional State and whose mineral resource has been estimated in 1,125,000 tonnes grading 3.2 grams gold and 24.0 grams silver per tonne containing 107,000 ounces of gold and 812,000 ounces of silver.

“The parties include companies and groups based in North America, Europe and China,” the media statement reads.

Despite the recent setback, last year, East Africa was able to secure $2 million in financing from Luck Sky Resources Investment, an affiliate of Luck Winner Investment, to continue exploration programs in the east African country.

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Source:: Infomine

The post East Africa Metals and Luck Winner fail to agree on Ethiopian projects financing appeared first on Junior Mining Analyst.