PERTH (miningweekly.com) – Metals developer Myanmar Metals will raise A$20.8-million through a share placement to institutional investors.
The ASX-listed company on Friday reported that it had received firm commitments for the placement of more than 319.9-million shares, at a price of 6.5c each from domestic and international institutional investors.
The placement price represented a 7.1% discount to Myanmar’s last trading price, and a 15% discount to its ten-day volume weighted average share price. The placement will not require shareholder approval.
“The placement is a significant funding milestone in the advancement of Bawdwin to a decision to mine,” said Myanmar CEO and executive chairperson John Lamb.
The funds raised will be used on definitive feasibility and environmental studies for the Bawdwin project, as well as for drilling, geophysical and related exploration programmes.
Funds will also go towards ongoing project maintenance and holding costs, early capital works for Bawdwin and general working capital.
“We believe the next 12 months will be a very significant period for the company, during which the foundations for re-establishing mining operations at Bawdwin will be put in place and the enormous exploration upside of this world-class mineral province will be better defined,” said Lamb.
A recently completed prefeasibility study for a Phase 1 starter pit at Bawdwin, in Myanmar, estimated the project to have a mine life of 13 years, processing some two-million tonnes a year of ore to produce 118 000 t/y of lead-in concentrate, more than ten-million ounces of silver-in-concentrate and 49 000 t/y of zinc-in-concentrate.
The study estimated a capital cost of $267-million, with operating costs estimated at $108/t processed.