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Re: News Releases - Monday, January 26, 2009
East Asia Minerals Comments on the New Indonesian Mineral and
Coal Mining Law, and Implications for the Company
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For Immediate release, January 26, 2009 TSXV: EAS
VANCOUVER, B.C. -- Monday, January 26, 2009 -- East Asia Minerals
Corporation (TSXV-EAS) believes that the changes proposed under the New
Indonesian Mineral and Coal Mining Law ("New Mining Law") are largely
positive for the Company and considers that the New Mining Law of
Indonesia is a globally competitive framework within which to operate.
It will provide the Company with excellent security of tenure, and a
well defined framework within which to grow the Company.
The draft of the New Mining Law was approved by the Indonesian
legislature on December 16, 2008, and was signed by the President on
January 12, 2009. Upon its enactment, the New Mining Law will replace
the current law on Principal Provisions of Mining ("Law No 11/1967" or
"Old Mining Law"). However, the existing implementation regulations of
the Law No 11/1967 shall remain applicable to the extent that such
implementing regulations do not contravene with the New Mining Law. The
new regulations required for the implementation of the New Mining Law
will take several months to draft.
There are several major changes in the New Mining Law compared with the
Old Mining Law. Under Old Mining Law mineral exploration and mining
activity in Indonesia was conducted under either a Mining Authorization
("KP") and/or a Contract of Work (CoW), which was issued by the Central
Government. East Asia Minerals Corporation currently operates under
several CoW applications, and KP's.
The New Mining Law grants permits through the issuance of the mining
license or IUP. The IUP is granted in two stages, namely the
Exploration IUP and the Operation Production IUP. The New Mining Law
guarantees that the holder of the Exploration IUP will be consecutively
granted with the Production Operation IUP as the continuance of its
business activity.
Under Old Mining Law an Exploration KP was granted for 3 (three) years,
followed by an Exploitation KP for 30 (thirty) years, extendable for 10
(ten) years twice. The Exploration IUP for the metal minerals may be
granted for the maximum period of 8 (eight) years and the subsequent
Production Operation IUP will be granted for 20 (twenty) years,
extendable for 10 (ten) years twice. Thus total tenure will be
shortened by 5 years; however, the exploration term has been extended
by 5 years. The Exploration IUP for metal minerals can grant an area
of 5,000 (five thousand) to 100,000 (one hundred thousand) hectares.
Hence large areas are available to prospective explorers. The Operation
Production IUP grants a maximum area of 25,000 (twenty five thousand)
hectares. EAS considers that the changes to term and size of tenure
are unlikely to impact upon its future operations and are sufficient
for all foreseeable mining activities.
IUPs can be granted by the Mayor/Municipal Official, Governor, or
Minister, depending on the location of mining area. This is a departure
from the previous Mining Law, wherein all exploration and mining
licenses were issued by the Central Government. EAS has long been
positioning itself for this eventuality and has excellent relationships
with all levels of Government in Indonesia.
The Exploration IUP for metal minerals mining will be granted by way of
public auction. This may well be a significant disincentive to new
entrants to Indonesia. However, under the New Mining Law CoW
applications submitted at least (1) one year prior to the enactment of
the New Mining Law, where the applicant has obtained a principal
license (izin prinsip) or the preliminary investigation permission
(surat ijin penyelidikan pendahuluan), will be honoured and treated as
an IUP application without the public auction requirement. Similarly,
existing KP's will be automatically converted to IUPs. Hence East Asia
Minerals Corporation believes that its large and hugely prospective
land position in Indonesia will be converted to the new IUP system
automatically.
Furthermore, the Company believes that direct foreign ownership of its
tenements will be allowed under the New Mining Law; however there may
be some requirement for divestment to an Indonesian entity, much in the
same way as there were such requirements under the Old Mining Law.
About East Asia Minerals Corporation
East Asia Minerals is an Asian-based, Canadian mineral exploration
company with gold and copper exploration properties in Indonesia, and
uranium exploration properties in Mongolia. In Indonesia the Company
has a 70 to 85% interest in six advanced gold and gold-copper
properties located in Aceh Province, Sumatra, and Sangihe Island, North
Sulawesi. Two of these, the Sangihe (Binebase-Bawone) and Barisan 1
(Abong) gold projects are being drilled to define NI43-101 compliant
resources. The Company owns twelve uranium properties, including the
advanced Ingiin-Nars, Ulaan Nuur and Enger uranium projects, four
phosphate properties, and a 75% interest in the Khok Adar copper oxide
discovery in Mongolia. East Asia currently has 55,645,372 shares
outstanding. Its shares are listed for trading on the TSX Venture
Exchange under the symbol "EAS".
Disclaimer - The foregoing commentary is based on the beliefs,
expectations and opinions of management on the date the statements are
made and the Company assumes no obligation to update same. Accordingly,
investors should not place undue reliance on such commentary.
Forward Looking Statements - This News Release contains forward looking
information within the meaning of the British Columbia Securities Act,
the Ontario Securities Act and the Alberta Securities Act, which
involve known and unknown risks, uncertainties and other factors which
may cause the actual results, performance or achievements of the
Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such forward-looking statements. Forward-looking statements are subject
to a variety of risks and uncertainties which could cause actual events
or results to differ from those reflected in the forward-looking
statements, including, without limitation, risks and uncertainties
relating to the interpretation of drill results and the estimation of
mineral resources and reserves, the geology, grade and continuity of
mineral deposits, the possibility that future exploration, development
or mining results will not be consistent with our expectations, metal
recoveries, accidents, equipment breakdowns, title matters and surface
access, labour disputes or other unanticipated difficulties with or
interruptions in production, the potential for delays in exploration or
development activities or the completion of new or updated feasibility
studies, the inherent uncertainty of production and cost estimates and
the potential for unexpected costs and expenses, commodity price
fluctuations (including uranium, fuel, steel and construction items),
currency fluctuations, failure to obtain adequate financing on a timely
basis and other risks and uncertainties. Should one or more of these
risks and uncertainties materialize, or should underlying assumptions
prove incorrect, actual results may vary materially from those
described in forward-looking statements. Accordingly, readers are
advised not to place undue reliance on forward-looking statements. The
words anticipate, believe, estimate and expect and similar expressions,
as they relate to us or our management, are intended to identify
forward looking statements relating to the business and affairs of the
Company. Except as required under applicable securities legislation, we
undertake no obligation to publicly update or revise forward-looking
statements, whether as a result of new information, future events or
otherwise.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
To receive or stop receiving EAS news via email, please email
Info@EAminerals.com and state your preference in the subject line.
FOR FURTHER INFORMATION, visit the Company's website at
www.EAminerals.com, or contact:
Michael Hawkins, President and CEO
Vancouver
T: +1-604-684-2183
E: Hawkins@EAminerals.com
or
Nick Kohlmann, Corporate Communications
Toronto
T: +1-416-792-8734
E: Kohlmann@EAminerals.com
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Copyright (c) 2009 EAST ASIA MINERALS CORPORATION (EAM) All rights
reserved. For more information visit our website at
http://www.eaminerals.com/ or send mailto:info@eaminerals.com
Message sent on Mon Jan 26, 2009 at 7:17:53 AM Pacific Time
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East Asia Minerals Corporation
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EXPLORATION STAGE |
CODE : EAS.V |
ISIN : CA2705411056 |
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ProfileMarket IndicatorsVALUE : Projects & res.Press releasesAnnual reportRISK : Asset profileContact Cpy |
East Asia Minerals is a gold and silver exploration company based in Canada. East Asia Minerals holds various exploration projects in Indonesia. Its main exploration properties are KHOK ADAR, ENGER, ULAAN NUUR and INGIIN-NARS in Mongolia and TANGSE, TAKENGON, BARISAN 2 PORPHYRY PROJECTS, ABONG, SANGIHE, MIWAH, UPPER TENKERENG and BARISAN in Indonesia. East Asia Minerals is listed in Canada and in Germany. Its market capitalisation is CA$ 8.3 millions as of today (US$ 6.3 millions, € 5.3 millions). Its stock quote reached its highest recent level on May 14, 2010 at CA$ 8.73, and its lowest recent point on January 01, 2016 at CA$ 0.01. East Asia Minerals has 53 790 000 shares outstanding. |