EAM said it had executed a binding letter of intent with Chinese mining company Tibet Huayu Mining to finance, develop and operate its assets in exchange for majority stakes in the projects. EAM holds 70% of Harvest Mining and its Terakimti gold heap leach project, and 100% of Tigray Resources, which owns the Mato Bula and Da Tambuk deposits, all within 15km of each other. Mining licences for Mato Bula and Da Tambuk require a formal ratification after the ministry of mines and petroleum approved mining agreements for the two last month. "The signing of the binding LOI with Tibet Huayu marks a significant milestone for EAM and the emerging Ethiopian mining sector," CEO Andrew Lee Smith said. EAM had a working capital deficit of about C$1.4 million (US$1.05 million) at the end of September.

Source: Ethiopian News February 11, 2019 06:11 UTC