Photo by: Bloomberg
PERTH (miningweekly.com) – ASX-listed explorer Myanmar Metals has struck a A$14.9-million investment deal with base metals producer Perilya, which would fund the company’s share of the option exercised over the Bawdwin lead/zinc/silver mine, in Myanmar.
Myanmar earlier this week issued formal notice to Win Myint Mo Industries that it would exercise the Bawdwin option with its partner East Asia Power Company to obtain a majority interest in the Bawdwin mine.
A combined option fee of $20-million will be payable, representing a reimbursement of past project expenditure, and will be payable by June 18.
Myanmar said earlier this week that it would fund the option payment with capital raised from the placement of up to A$35-million worth of Myanmar shares.
The company on Friday revealed that Perilya had subscribed for a 19.9% shareholding in Myanmar, with shares priced at 6c each, for a total investment of A$14.9-million.
In addition, Myanmar has also received binding commitments from its current largest shareholder, Mark Creasy, to invest an additional A$4.2-million at an issue price of 6c each, to hold a 12.6% shareholding post the completion of the proposed A$35-million placement.
“After a comprehensive global process, we are delighted to have secured Perilya as our cornerstone 19.9% shareholder. Perilya is an ideal strategic investor with a wealth of experience in zinc, lead and silver mining operations and metals marketing,” said Myanmar CEO and executive chairperson John Lamb.
“These strategic benefits are backed by Perilya’s parent company, Zhongjin Lingnan, China’s largest integrated zinc producer with a market capitalisation in the order of 22.5-billion yuan.”
Lamb said that in combination with the ongoing support of the company’s major shareholder, Myanmar was fully funded for the imminent exercise of the Bawdwin option.
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.