East Africa Metals advances Magambazi project, Tanzania

Executive Summary

• East Africa Metals Inc. signed a binding MOU with Ubora Minerals Company Ltd. for the acquisition of the Magambazi gold project for $1 million cash plus a 4% net smelter returns royalty.
• The agreement follows a government‑led mediation and includes a commitment by Ubora to commence development within 48 months, targeting 40,000 oz of gold production per year.
• A formal mining plan is being prepared to satisfy Tanzanian regulatory requirements and enable renewal of the suspended licences for Magambazi and Handeni properties.

Key Details

• MOU Parties: East Africa Metals Inc. (seller) and Ubura Minerals Company Ltd., a subsidiary of Anchises Capital Precious Metal Fund LLC (buyer).
• Consideration: $1 million cash payable to East Africa Metals; 4% net smelter returns royalty on future gold production.
• Development Timeline: Ubora must begin project development within 48 months after obtaining all required approvals.
• Target Production: Planned annual gold output of 40,000 oz once the mine is in commercial operation.
• Regulatory Process: The mining plan will address technical, environmental, community, and compliance aspects; its acceptance by the Tanzanian Mining Commission is required to renew the Magambazi and Handeni licences.
• Project Background: Magambazi deposit historically contains >1 million oz of gold; operations were suspended in Dec 2022 due to non‑compliance by prior operator PMM Mining Co. Ltd.
• Strategic Fit: Acquisition aligns with East Africa Metals’ portfolio, which includes interests in the Adyabo property (30% net profit) and Harvest VMS project (70% interest).

Notable Quotes

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