Perth-based Myanmar Metals has received binding commitments of $35 million from investors to advance the revival of the Bawdwin lead-zinc-silver-copper mine in northeast Myanmar.
The heavily oversubscribed placement was raised at an issue price of 6 cents per share, and includes a previously announced $19.1 million in funding from Australian base metals company Perilya and noted prospector Mark Creasy (Yandal Investments). The price of 6 cents per share represents a 6 per cent premium on the 10-day volume weighted average price (VWAP), and a 9.7 per cent discount on the company’s five-day VWAP as of June 4.
Funds will be used for general progression of the Bawdwin option, as well as further drilling and technical studies, pre-feasibility study (PFS) funding, feasibility study (FS) commencement, concession holding costs and general working capital.
Myanmar chief executive officer John Lamb thanked investors for their support.
“We now move forward as part of a larger, well-funded company which will have a controlling interest in a world-class mining project,” he said.
Previously a major mining operation under the British empire, the Bawdwin mine went through problems during World War Two and was nationalised in 1965. By the time the mine was privatised in 2002, operations at the site had essentially died.
Myanmar recently announced plans to exercise an option with local partner Win Myint Mo Industries to acquire 85 per cent of the Bawdwin mining lease.
Late last year, the company released a JORC 2012 resource estimate for the site of 75.94 million tonnes (Mt) at 4.6 per cent lead, 2.3 per cent zinc, 0.25 per cent copper and 119 grams per tonne (g/t) of silver. This estimate increased last month to 82Mt with near-equivalent rates.
Following a site visit last year by the company board, Lamb commented that it was a “genuine opportunity to practically build and operate a mining project in that location which takes full advantage of [an] outstanding tier one deposit”.