East Africa Metals Inc. terminated the project financing memorandum of understanding with Luck Winner Investment Ltd., for up to US$250 million in funding.

The company said March 29 that it has now started discussions with interested parties for financing the Terakimti oxide gold project or all its Ethiopian projects.

East Africa signed the agreement in October 2017 to secure development financing for its Ethiopian projects.

Luck Winner also committed to purchase via a private placement 52.1 million units of the company at 26 Canadian cents apiece for about C$13.6 million in proceeds.