MYANMAR METALS LIMITED (formerly Top End Minerals Limited)
ABN: 48 124 943 728
SUITE 1, 6 RICHARDSON STREET
WEST PERTH WA 6005
24 August 2017
UPDATE ON CORNERSTONE RESOURCES OPTION
Myanmar Metals Limited (“the Company”) (“MYL”), provides this update on the option to acquire a 60% stake in Cornerstone Resources (Myanmar) Limited (“CRML”).
The Company’s option to acquire a 60% stake in CRML, which owns the Lashio Zinc Refinery and the (non‐operational) Longh Keng mine, has now expired. As previously advised, one of the major shareholders of CRML informed the Company that it would not extend the option period to give MYL sufficient time to assess opportunities to source long‐term feedstock for the Lashio Refinery. This position has not changed.
The Board notes that the proposed acquisition cost for a 60% interest in CRML of US$43 million, plus the value of inventory was substantial, and the Company would have required satisfactory evidence of a long term feedstock to justify that cost. MYL of course remains receptive to transacting on CRML in the future and will continue to correspond with the shareholder.
Since being advised of the shareholder’s intentions, MYL’s team has focused on advancing due diligence on the Bawdwin Zn‐Pb‐Ag‐Cu Mine in Myanmar in participation with the current owner. Activities are progressing to plan, and as recently reported, an initial JORC resource will be reported on a section of lower grade ‘halo’ mineralisation shortly.
MYL Chairman John Lamb commented: “Whilst we were certainly interested in CRML, the acquisition cost was prohibitive given the limited amount of guaranteed feedstock for the Lashio Refinery. We would have appreciated an extension of the option period in order to determine the existence of that feedstock, or a negotiated outcome to reflect the uncertainty. Regardless, we respect the CRML shareholder’s position.
“As a result, it is in the best interests of shareholders that we focus 100% of our energies on Bawdwin which is by far the bigger prize and a unique opportunity for a junior resources company. We look forward to reporting the initial JORC resource shortly and we are working closely and cooperatively with our partner Win Myint Mo to achieve this.”
JOHN LAMB Chairman