East Africa Metals Inc. secured approval for a mining license agreement for the Terakimti oxide gold project at its 70%-owned Harvest gold property in Ethiopia.
The company said Dec. 7 that it will now work to finalize an agreement for up to US$250 million in financing for the project, first announced in early October. The due diligence review period related to the deal was extended for 30 days in mid-November.
An independent environmental impact and socioeconomic assessment study concluded that the local population is in favor of the project and any adverse impacts can be mitigated, recommending that the project be developed.
"We plan to move forward as soon as possible with engineering and development of the project," CEO Andrew Lee Smith said.
East Africa aims to develop an open pit mining operation at Terakimti with heap leaching and on-site processing to produce gold-silver doré.