East Africa Metals Provides Update on Magambazi Project, Tanzania
East Africa Metals (OTC:EFRMF) has announced significant developments for its Magambazi gold project in Tanzania. The company has signed a binding MOU with Ubora Minerals, following government-led mediation after the suspension of operations in December 2022. Under the agreement, Ubora will acquire the project for $1.0 million cash plus a 4% Net Smelter Returns royalty.
Ubora commits to begin project development within 48 months of securing approvals, targeting 40,000 ounces of annual gold production. The company is working with the Tanzanian Ministry of Minerals to prepare a formal mining plan, which will address technical parameters, environmental considerations, and regulatory compliance to enable mining license renewal.
East Africa Metals (OTC:EFRMF) ha annunciato sviluppi importanti per il progetto aurifero di Magambazi in Tanzania. La società ha firmato un MOU vincolante con Ubora Minerals, a seguito di una mediazione guidata dal governo dopo la sospensione delle attività nel dicembre 2022. Secondo l’accordo, Ubora acquisirà il progetto per 1,0 milioni di dollari in contanti più una royalty del 4% sul Net Smelter Return.
Ubora si impegna ad avviare lo sviluppo del progetto entro 48 mesi dall’ottenimento delle approvazioni, con l’obiettivo di produrre 40.000 once d’oro all’anno. La società collabora con il Ministero delle Miniere della Tanzania per predisporre un piano minerario formale che affronterà parametri tecnici, aspetti ambientali e conformità normativa per consentire il rinnovo della licenza mineraria.
East Africa Metals (OTC:EFRMF) ha anunciado avances importantes en su proyecto aurífero Magambazi en Tanzania. La compañía ha firmado un MOU vinculante con Ubora Minerals, tras una mediación dirigida por el gobierno tras la suspensión de operaciones en diciembre de 2022. Según el acuerdo, Ubora adquirirá el proyecto por 1,0 millones de dólares en efectivo más una regalía del 4% sobre el Net Smelter Return.
Ubora se compromete a iniciar el desarrollo del proyecto en un plazo de 48 meses desde la obtención de las aprobaciones, con la meta de producir 40.000 onzas de oro al año. La compañía trabaja con el Ministerio de Minas de Tanzania para preparar un plan minero formal que abordará parámetros técnicos, consideraciones ambientales y cumplimiento regulatorio para posibilitar la renovación de la licencia minera.
East Africa Metals (OTC:EFRMF)는 탄자니아 마감바지(Magambazi) 금광 프로젝트와 관련해 중요한 진전을 발표했습니다. 회사는 2022년 12월 운영 중단 이후 정부 주도의 조정 끝에 Ubora Minerals와 구속력 있는 양해각서(MOU)를 체결했습니다. 해당 합의에 따라 Ubora는 현금 100만 달러와 순제련수익(Net Smelter Return) 4% 로열티를 대가로 프로젝트를 인수합니다.
Ubora는 승인 획득 후 48개월 이내 프로젝트 개발을 시작하겠다고 약속했으며 연간 4만 온스의 금 생산을 목표로 하고 있습니다. 회사는 탄자니아 광물부와 협력해 기술적 파라미터, 환경 고려사항 및 규제 준수를 포함하는 정식 채광계획을 준비하여 채광허가 갱신을 추진하고 있습니다.
East Africa Metals (OTC:EFRMF) a annoncé des avancées majeures pour son projet aurifère de Magambazi en Tanzanie. La société a signé un MOU contraignant avec Ubora Minerals, à la suite d'une médiation conduite par le gouvernement après la suspension des opérations en décembre 2022. En vertu de l'accord, Ubora acquerra le projet pour 1,0 million de dollars en cash plus une redevance de 4% du Net Smelter Return.
Ubora s'engage à lancer le développement du projet dans un délai de 48 mois après obtention des approbations, visant une production annuelle de 40 000 onces d'or. La société collabore avec le ministère des Mines tanzanien pour préparer un plan minier formel qui traitera des paramètres techniques, des aspects environnementaux et de la conformité réglementaire afin de permettre le renouvellement de la licence minière.
East Africa Metals (OTC:EFRMF) hat bedeutende Entwicklungen für sein Goldprojekt Magambazi in Tansania bekanntgegeben. Das Unternehmen hat nach einer staatlich geleiteten Vermittlung nach der Aussetzung der Aktivitäten im Dezember 2022 ein verbindliches MOU mit Ubora Minerals unterzeichnet. Laut Vereinbarung wird Ubora das Projekt für 1,0 Mio. USD in bar zuzüglich einer 4% Net Smelter Return-Royalty übernehmen.
Ubora verpflichtet sich, die Projektentwicklung innerhalb von 48 Monaten nach Erhalt der Genehmigungen zu beginnen und strebt eine jährliche Goldproduktion von 40.000 Unzen an. Das Unternehmen arbeitet mit dem tansanischen Ministerium für Bergbau zusammen, um einen formellen Bergbauplan zu erstellen, der technische Parameter, Umweltaspekte und regulatorische Anforderungen für die Erneuerung der Bergbaulizenz behandelt.
- New development partner secured through binding MOU with Ubora Minerals
- Deal structure includes $1.0M cash payment plus 4% Net Smelter Returns royalty
- Project targets significant production of 40,000 ounces of gold annually
- Government support through mediation process demonstrates regulatory backing
- Previous operator PMM Mining suspended operations due to non-compliance in December 2022
- Long development timeline with 48-month window for project commencement
- Mining licenses currently suspended pending renewal
- Project requires new approvals and mining plan acceptance before proceeding
Positioning Ubora as Development Partner and Advancing Formal Mining Plan to Enable License Renewal and Initiate Mine Development
Vancouver, British Columbia--(Newsfile Corp. - August 29, 2025) - East Africa Metals Inc. (TSXV: EAM) (FSE: EA1) (OTC Pink: EFRMF) ("East Africa" or the "Company") is pleased to provide an update on the status of its Handeni Properties in Tanzania, including the Magambazi gold deposit.
Government Engagement and Third-Party Developer
Since the suspension of operations at the Magambazi project in December 2022 due to non-compliance by the prior operator PMM Mining Company Limited ("PMM"), East Africa has maintained continuous engagement with the Tanzanian Ministry of Minerals to secure a sustainable path forward for the development of the Magambazi Project.
Following a government-led mediation process initiated in August 2024, East Africa and PMM were directed by the Minister of Minerals to identify a qualified third-party developer to advance the project. In consultation with the Ministry, East Africa has signed a binding Memorandum of Understanding ("MOU") with Ubora Minerals Company Limited ("Ubora"), a Tanzanian company and subsidiary of Anchises Capital Precious Metal Fund LLC, one of the major shareholders of East Africa.
The MOU provides for the acquisition of the Magambazi Project by Ubora, for a cash payment of US
Formal Mining Plan Development
As part of the government-supervised process, Ubora, with the support of East Africa and in consultation with the Tanzanian Ministry of Minerals, is preparing a formal mining plan. This plan is a prerequisite for the renewal of the Magambazi and Handeni mining licenses and is designed to establish a clear framework for advancing to the next phase of mine development.
The mining plan will address:
Technical and operational parameters for open-pit development at Magambazi;
Environmental and community considerations;
Compliance with Tanzanian mining legislation and regulatory standards; and,
Timelines and investment thresholds required to initiate commercial mining.
Once accepted by the Tanzanian Mining Commission, the plan will enable the renewal of the suspended mining licenses and the initiation of a mine development program designed to unlock the value of the Handeni Properties for the benefit of Tanzania, local stakeholders and East Africa shareholders.
About the Magambazi Property
The Handeni Gold Project, located 173 kilometres northwest of Dar es Salaam and 35 kilometres south of the town of Handeni, consists of two mining licenses covering 9.9 km² (the "Magambazi" deposit) and contiguous prospecting licenses totalling 83.5 km², collectively referred to as the Handeni Gold Mine. Historical exploration and development have defined the Magambazi deposit containing over 1.0 million ounces of gold.
About East Africa Metals Inc.
The Company's principal assets include a
EAM has invested US
More information on the Company can be viewed at the Company's website: www.eastafricametals.com.
For further information please contact:
Nick Watters, Business Development
Telephone +1 (604) 488-0822
Email investors@eastafricametals.com
Website www.eastafricametals.com
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 using forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should", "indicate" or variations of such words or similar words or expressions. Forward-looking information is based on reasonable assumptions that have been made by East Africa 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, level of activity, performance or achievements of East Africa to be materially different from those expressed or implied by such forward-looking information, including but not limited to: timing of receipt of mining permit; timing of mining development; projected heap leach recoveries ; early exploration; the closing of the agreement with the exploration and development company to advance the Magambazi Project or identify any other corporate opportunities for the Company; mineral exploration and development; metal and mineral prices; availability of capital; accuracy of East Africa's projections and estimates, including the initial mineral resource for the Adyabo, Harvest and Magambazi Properties; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; foreign taxation risks; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined, as well as those risk factors set out in in East Africa's management's discussion and analysis for the three months and nine months ended December 31, 2024 and for the year ended March 31, 2024, and East Africa's listing application dated July 8, 2013. Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The contained gold, copper and silver figures shown are in situ. No assurance can be given that the estimated quantities will be produced. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the timely closing of the financing; the timely execution of the Handeni Property Definitive Agreement and closing thereunder; the price of gold, silver, copper and zinc; the demand for gold, silver, copper and zinc; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; the renewal or extension of exploration Licenses; the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein. Although East Africa 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 update or revise forward looking information even if new information becomes available unless legislation requires the Company do so. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/264479
FAQ
What is the new deal between East Africa Metals (EFRMF) and Ubora Minerals for the Magambazi project?
What is the expected gold production target for the Magambazi project?
Why was the Magambazi project suspended in December 2022?
What is the timeline for Ubora to develop the Magambazi gold project?
What are the key requirements for resuming operations at the Magambazi project?
