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News Releases - Monday, October 29, 2007
East Asia Minerals to Distribute 58% of CAD$1.30 Cash Payment As
a Return of Capital
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For Immediate release, October 29, 2007 TSXV: EAS
VANCOUVER, B.C. -- Monday, October 29, 2007 -- East Asia Minerals
Corporation (TSXV-EAS) reports that 58% of the CAD$1.30 per share cash
distribution announced October 10, 2007, and approved by the Company's
shareholders October 18, 2007, will be distributed as a return of
capital.
Funds for the cash payment to registered shareholders of East Asia as
of the record date of October 19, 2007, are provided by the
amalgamation of East Asia and East Asia Minerals Corporation (Ontario),
and the CAD$83 million in proceeds received through the sale of shares
of EAM Energy LLC, a wholly-owned subsidiary of East Asia, to CFMM, a
subsidiary of Areva NC.
The Company is relying on proposed amendments to Canadian income tax
laws to avoid the return of capital from being deemed a dividend for
income tax purposes and calculated that 58% of the total cash
distribution is a return of capital. In addition, the residual per
share distribution (42% of the CAD$1.30 cash distribution) is a taxable
dividend designated as an "eligible dividend" for Canadian tax
purposes. As previously disclosed, in the event that the proposed
amendments to Canadian income tax laws are not enacted, it is expected
that 100% of the cash distribution would be designated as an "eligible
dividend" for Canadian tax purposes.
The shareholders are advised to consult with their own tax advisors as
to the implications and income tax treatment of the distribution. The
Company will withhold and remit income tax based on the CAD$1.30 cash
distribution to non-residents of Canada. The non-resident
shareholders
may be eligible to obtain a refund of the taxes withheld on the return
of capital by filing an application with the Canada Revenue Agency.
T5 statements will be issued to Canadian shareholders recognizing 42%
of the total distribution as a dividend and designated to be an
eligible dividend. NR4 statements will be issued to the non-resident
shareholders indicating the dividend and the return of capital received
for the 2007 tax year and the related income tax withholdings. For
further information please review the Company's Information Circular
posted on SEDAR.
About East Asia Minerals Corporation
East Asia Minerals is an Asian-based, Canadian mineral exploration
company with uranium, gold and copper assets in Mongolia
and Indonesia.
The Company owns three uranium properties, Ingiin-Nars, Ulaan Nuur and
Enger, and a 75% interest in the Khok Adar copper oxide discovery, in
Mongolia.
In Indonesia, it has a 70 to
85% interest in five advanced
gold and gold-copper projects located in Aceh
Province in Sumatra and
North Sulawesi. East Asia
currently has 54,055,172 shares outstanding.
Its shares are listed for trading on the TSX Venture Exchange under
the symbol "EAS".
Forward Looking Statements - This News Release contains forward looking
information within the meaning of 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.
To receive or stop receiving EAS news via email, please email
Info@EAminerals.com and state your preference in the subject line.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
FOR FURTHER INFORMATION, visit the Company's website at
www.EAminerals.com, or contact:
Michael Hawkins, President
Vancouver
T: +1-778-997-2183
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) 2007 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 Oct 29, 2007 at 1:50:27 PM Pacific Time
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