AMN - ETHIOPIA: Environmental approvals granted

East Africa Metals has received approval from the Ethiopian Ministry of Mines, Petroleum and Natural Gas for the Environmental and Social Impact Assessments (ESIA) for the Mato Bula gold-copper and Da Tambuk gold projects.

The company submitted mining licence applications for the Mato Bula and Da Tambuk projects in December 2017 and in April 2018 provided formal responses to the Ministry’s comments on the applications.

The next step in the mining licence application process is for the Ministry to prepare draft model mining licence agreements for the company’s review.

The company has previously received a mining licence agreement for the Terakimti Gold Heap Leach Project, and upon receipt of the two additional mining licence agreements, the company will have approval for development of three mining projects in Ethiopia.

East Africa’s president and CEO Andrew Lee Smith said: “The approval of the two project ESIA reports is a major step in the mine permitting process.

"The comprehensive ESIAs demonstrate that both the Mato Bula and Da Tambuk projects can be developed in accordance with the environmental and social responsibility requirements of Ethiopia.

"Furthermore, the ESIAs confirmed support from government and local communities for both projects. We appreciate the diligence of the Ministry’s Environment and Climate Change Directorate in completing this important process.”

With completion of the Preliminary Economic Assessments for the Terakimti, Mato Bula and Da Tambuk projects, East Africa is now focused on arranging the pre-production capital financing required to develop the Terakimti project and commence production.

East Africa is in discussions with several groups in North America, Europe, China and Hong Kong in providing project financing.

The discussions with the groups have identified a number of financing alternatives including debt (from private lenders and merchant banks), metal streams, joint venture arrangement and/or a strategic investment either at the company or the project level. The company will continue to engage in discussions with the objective to secure a binding letter of intent or a binding financing offer.

East Africa has started discussions with Ethiopian Road Authority for survey and design of the seven-kilometre access road from the paved highway to the Terakimti HL project area. The authority is preparing a term of reference for the upgrade of the access road.

The company is also in discussions with a district branch of the Power Authority to provide a formal proposal for construction and connection of a power line to the high-tension power corridor seven kilometres west of the Terakimti project area.

www.eastafricametals.com