 East Asia Minerals Corporation
(TSX VENTURE:EAS) has signed an agreement to sell the Ooshiin Govi uranium
site to Compagnie Francaise de Mines et Metaux ("CFMM", a
subsidiary of Areva NC) for a cash payment of just under $78 million
U.S.
This will be financed through
the sale of its wholly owned Mongolia subsidiary, EAM Energy LLC (EAME).
The transaction, which is subject to shareholder approval, will also
include the Bayan Uul, Elgenii, Ikh Khet and Airag-1 uranium properties.
The proposed transaction with
CFMM reportedly has the support of the company's board of directors
and management team, who recommend that the East Asia Mineral's shareholders
vote in favor of the assets sale. Should shareholder approve of the
agreement, it is the company's stated intention to issue dividends of
at least 85 percent of the after-tax proceeds of the sale to shareholders
of East Asia.
"The company views CFMM's
proposed purchase of the Ooshiin Govi tenements, for more than the current
market capitalization of East Asia Minerals Corporation, as absolute
validation of East Asia's ability to capture opportunities and maximize
shareholder value," stated Michael Hawkins, East Asia Minerals'
President.”
"The preliminary nature
of Ooshiin Govi, coupled with results from recent drilling, more appropriately
suits the time horizon, risk tolerance and resources of a senior producer,
such as Areva. We believe that the proposed transaction provides an
optimal return of value to the shareholders, and the opportunity to
continue receiving value through a strong acquisition and exploration
strategy.”
“We also believe that a purchase
of this magnitude, by one of the world's leading uranium companies,
supports the company's positive assessment of its remaining uranium
portfolio, which includes the Ingiin-Nars, Ulaan Nuur, and Enger properties."
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