Myanmar Metals Limited (“MYL or “the Company”) is pleased to announce that it has issued formal notice to Win Myint Mo Industries Co., Ltd (WMM) that it will exercise the Bawdwin Option, with its partner East Asia Power (Mining) Company Limited (EAP).
The combined option fee of US$20 million represents reimbursement of past project expenditure incurred by Concession Holder WMM and will be payable by 18 June 2018. The Company will finance its share of the option payment (amounting to US$13.9 million) with funds raised from the placement of up to A$35 million of MYL shares.
The issuance of placement shares will be subject to shareholder approval to be sought at the Company’s General Meeting to be held on 5 June 2018.
John Lamb, CEO and Chairman stated:
“This is a significant milestone for the Company. Over the past 12 months we have successfully completed our due diligence on the Bawdwin Project and, subject to completion of the Placement, can move forward into feasibility studies. I thank the MYL team for their efforts over this period.
I would also like to acknowledge the cooperation we have received from our partners WMM and EAP to bring the project to this point.”
The recently completed 4,368 metre drilling program and related testwork will provide much greater confidence to the Mineral Resource estimate with the intent of declaring a maiden JORC Compliant Indicated Mineral Resource imminently.
The updated Mineral Resource estimate will be incorporated into an update of the Scoping Study and this is due mid-June.
The Company is focused on the exercise of the option and thereafter, will move into the feasibility phase.
John Lamb Chairman and CEO
For More Information:
Ross Dinsdale, General Manager Investor Relations and Corporate Affairs Mob: +61 8 6147 8103