East Africa Metals Settles Lawsuit for Finder's Fee
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 15, 2015) - East Africa Metals Inc. (TSX VENTURE:EAM) ("East Africa" or the "Company") announces that a settlement has been concluded with Harpreet "Harp" Sangha, who filed a notice of civil claim seeking damages of $16 million based on his alleged entitlement to a finder's fee in connection with a $1.6 million private placement financing concluded in 2009 by Canaco Resources Inc. (now named Orca Gold Inc.) (see East Africa news release dated May 8, 2013). Under the terms of the settlement agreement, East Africa has paid $10,000 to Mr. Sangha and Mr. Sangha has released the Company from any and all claims in respect of the matter.
East Africa was "spun out" of Orca Gold Inc. in April 2013. As part of that transaction East Africa agreed to assume certain liabilities. Mr. Sangha's claim was such a liability and East Africa indemnified Orca Gold Inc. in respect of it.
On behalf of the Board of Directors:
Andrew Lee Smith, President and CEO
About East Africa Metals
The Company's principal assets and interests include both the 70%-owned Harvest polymetallic VMS exploration Project, which covers approximately 116 square kilometres in the Tigray region of Ethiopia, 600 kilometres north‐northwest of the capital city of Addis Ababa, and the Adyabo Project, covering 264 square kilometres immediately west of the Harvest Project. The Company has entered into an agreement to acquire up to 80% of the Adyabo Project. Additionally, the Company owns the 93 square kilometre Handeni Property located in north-eastern Tanzania. Handeni includes the Magambazi Project, a gold deposit discovered in 2009.
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions or statements that certain events "may" or "will" occur. Forward-looking information in this press release includes, but is not limited to, statements relating to the defense, and expected outcome, of the lawsuit. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results to be materially different from those expressed or implied by such forward-looking information. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. The Company does not undertake any obligation to update forward-looking information if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.
Contact
East Africa Metals Inc.
Nick Watters
Business Development
604-488-0822
nwatters@eastafricametals.com
www.eastafricametals.com