East Asia Minerals Declares CAD$1.30 Per Share Cash Dividend
Thursday, October 11th, 2007
East Asia Minerals Corporation is pleased to announce that it will provide a cash payment of CAD$1.30 per share to registered shareholders of East Asia as of the record date of October 19, 2007. Funds for this cash distribution are provided by the recent amalgamation of East Asia and East Asia Minerals Corporation (Ontario), and the resulting proceeds received through the sale of the Ooshiin Govi uranium property to Compagnie Francaise de Mines et Metaux (“CFMM”), a subsidiary of Areva NC, for a cash payment of CAD$83 million. This transaction was approved by the shareholders of East Asia and the TSX-Venture Exchange, and facilitated through the sale of its wholly owned Mongolia subsidiary, EAM Energy LLC (“EAME”). The transaction included the Bayan Uul, Elgenii, Ikh Khet and Airag-1 uranium tenements. Details of the properties can be found on the East Asia web site at www.EAminerals.com and in previous news releases.
“We are pleased to be able to return such value to our shareholders so early in the life of the Company,” commented Michael Hawkins, East Asia Minerals’ President. “The transaction with Areva provides an immediate return of outstanding value to the shareholders and the capital required to continue the Company’s aggressive exploration, acquisition and growth strategy. The Mongolian transaction was unique in that East Asia retained the most advanced of its uranium portfolio. In addition to the Mongolian uranium assets, we are also extremely encouraged with the strength of the Company’s Indonesian copper-gold assets. At the Sangihe gold project we are expecting the first round of assays in the coming weeks and thus far have encountered very promising alteration and mineralization in all three holes completed to date.”
The final calculated cash distribution has been subject to net corporate tax considerations, transaction costs, and the Board of Directors’ determination of the Company’s future capital requirements. The date of the cash distribution payout to registered and beneficial shareholders has been set for October 29, 2007. Beneficial shareholders having shares held through brokerage houses shall receive their cash distributions shortly thereafter. Un-exercised warrants and options are not eligible for the cash distribution.
The Company is relying on proposed amendments to Canadian income tax laws to distribute a minimum of 47% of the total cash distribution to shareholders as a tax free return of capital. In addition, the residual per share distribution (CAD$1.30 less the return of capital) will be a taxable dividend and designated as an “eligible dividend” for Canadian tax purposes by the Company. In the event that the proposed amendments to Canadian income tax laws are not enacted, it is expected that 100% of the cash distribution will be designated as an “eligible dividend” for Canadian tax purposes by the Company, as previously disclosed. This tax free return of capital is also subject to shareholder approval, which shall be voted on at a special meeting to be held October 18, 2007.