Myanmar Metals eyes $30m raising

The Mark Creasy-backed Myanmar Metals is raising $30 million for its flagship Bawdwin project in the South East Asian country.

The polymetallic explorer is raising $20.8 million in a discounted placement priced at 6.5¢, along with $9.2 million in a one-for-nine rights issue.

The cash will be used for a definitive feasibility study, further drilling, early capital works, ongoing maintenance, permitting and working capital.

Myanmar holds a 51 per cent stake in the historic Bawdwin lead-zinc-silver mine in the north of the country and is aiming at a decision to mine in the second quarter of 2020.

Bawdwin was first worked by Chinese artisanal miners in the 15th century.

The British began production at the mine in 1909 under mining engineer and future US president Herbert Hoover, but the operation was closed in World War 2 and has lain dormant ever since with the country (then Burma) under military rule and racked with ethnic strife.

Mr Creasy’s Yandal Investments holds a 12 per cent stake in Myanmar while Chinese-owned Australian base metals miner Perilya owns 19 per cent.

The two groups have collectively subscribed for $9.2 million in new shares.

The company’s share register is also dotted with members of the Private Investor Group, a losse collection of like-minded retail investors who have banded together to behave like an institutional investor.

Argonaut is lead manager and underwriter to the rights issue while Patersons is acting as co-manager.

Myanmar shares last changed hands for 7¢.

Source: The West Australian

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