TSXV-listed East Africa Metals and Luck Winner Investment have agreed to terminate the Ethiopian project financing Memorandum of Understanding announced on 2 October 2017.
The Memorandum of Understanding (MOU) would have seen Luck Winner Investments invest up to US$250 million into development of East Africa Metals’ projects in Ethiopia.
The company said in a statement that despite the best efforts of both parties, negotiations failed to define a viable transaction that would be in the best interests of East Africa shareholders and Luck Winner.
East Africa Metals has initiated discussions with a number of interested parties for the project financing of the Terakimti oxide gold project and/or all the Ethiopian projects.
The parties include companies and groups based in North America, Europe and China.
“East Africa will continue in its efforts to source funding for its Ethiopian projects to meet its requirements to develop the Terakimti oxide gold project,” says East Africa Metals President and CEO Andrew Lee Smith.
This announcement follows the successful closing of the US$2 million financing with Luck Sky Resources Investment Limited, an affiliate of Luck Winner Investment, on 28 December 2017, to continue exploration activity in Ethiopia.