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Myanmar completes A$35m capital raise

7th June 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – ASX-listed Myanmar Metals has completed a A$35-million share placement.

The company said on Thursday that the placement, priced at 6c a share, has been heavily oversubscribed, with significant demand from a wide range of new domestic and international institutional investors.

“The demand for the placement has been extremely strong. I believe this is because the company’s core investment proposition is compelling,” said executive chairperson and CEO John Lamb.

“The placement has achieved our objective of introducing a significant number of new, high quality institutions to the shareholder register. We believe this further validates the quality of the Bawdwin concession and ensures the company has a strong financial position as it progresses Bawdwin towards mine development,” added Lamb.

The successful completion of the share placement satisfied a key condition precedent in the share subscription agreement with investor Perilya, which would see Perilya invest A$14.9-million into Myanmar to increase its shareholding to 19.9%.

The funds raised in the share placement, along with existing cash reserves, will be used to exercise an option over the Bawdwin project, as well as to fund further drilling and technical studies, a prefeasibility study, concession holding costs, the start of feasibility studies and general working capital.

The Bawdwin concession contains a tier-one polymetallic deposit with a maiden Joint Ore Reserves Committee-compliant resource of 82-million tonnes, at 4.7% lead, 119 g/t silver and 2.4% zinc.

Prior to the Second World War, Bawdwin was the largest producing lead mine, and one of the largest producing silver mines in the world. After the Second World War, the Myanmar state held the mining concession until 2009, when it was acquired by Win Myint Mo Industries.

Edited by Creamer Media Reporter

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