East Africa Metals Inc. Announces MOU for the Development of the Magambazi/Handeni Mining Project in Tanzania

Core Viewpoint - East Africa Metals Inc. has entered into a binding Memorandum of Understanding with Ubora Minerals Company Limited to acquire and develop the Magambazi and Handeni mining project in Tanzania, following previous issues with PMM Mining Company Limited [1][2][3]. Group 1: MOU and Transaction Details - The MOU includes a cash payment of US$1.0 million upon signing a definitive agreement, replacing a previous amount owed by PMM [8]. - The transaction is classified as a "related party transaction" due to Ubora's affiliation with Anchises Capital, which holds approximately 18.66% of East Africa Metals' shares [1][5]. - The MOU is subject to approval by the Tanzanian Mining Commission and other relevant authorities, as well as the TSX Venture Exchange [4]. Group 2: Background and Previous Issues - In October 2020, East Africa Metals signed agreements with PMM to develop the Magambazi project, but operations were suspended in December 2022 due to PMM's non-compliance [2]. - The Tanzanian government intervened in August 2024 to mediate a resolution regarding PMM's non-compliance, leading to the current MOU [3]. Group 3: Company Overview - East Africa Metals holds a 30% Net Profits Interest in the Mato Bula and Da Tambuk mines and a 70% project interest in the Harvest polymetallic VMS Exploration Project in Ethiopia [6]. - The company has invested US$66.8 million in African exploration since 2005, identifying 2.8 million ounces of gold and gold-equivalent resources at an average discovery cost of US$24 per ounce [7].