East Asia Minerals Corp. is planning to consolidate its shares on a 1-for-10 basis, after closing the first of two planned financings aiming to raise a total of up to C$3.5 million.

The first offering comprises 94 million units at 1 cent each to raise C$940,000. Each unit will include 1 common share and 0.5 of a share purchase warrant, with each whole warrant exercisable at 5 cents per share.

Upon closing the first offering, East Asia Minerals will call a meeting to seek shareholder approval for the share consolidation.

The company also plans to reshuffle its board, subject to the offering raising a minimum of C$800,000, with Kim Oishi, Terry Filbert, Alan McMillan and Scott Chaykin to replace Ed Rochette, David Anthony and Peter Sederowsky as directors.

In addition, Terry Filbert will be appointed as CEO of the company and of its wholly owned subsidiary Sangihe Gold Corp. Sangihe Gold holds a 70% interest in PT Tambang Mas Sangihe, which in turn holds the Sangihe gold property in Indonesia.

East Asia Minerals is also planning a nonbrokered private placement of convertible debentures to raise C$2.6 million. The debentures will pay 10% interest per year, accruing until conversion. Principal and accrued interest will be convertible into shares for five years at 10 cents per post-consolidation share, subject to acceleration.

The company will use the proceeds to pay expenses related to its Indonesian properties, to settle debt and for working capital.