Eumeralla Resources plans to divest its Myanmar operations, almost four years after it applied for an exploration licence in the country, but will continue with its operations in Mongolia for the immediate future.
In July 2013, Eumeralla applied for a licence to explore tin and tungsten on a site in Kayah State, through its 70% stake in Mawsaki Mining Company. Local company Myanmar Energy Resources Group held the remaining share of the joint venture.
In October 2014, Eumeralla said it had been approved state government approval for the permit, but was still awaiting Union level permission.
In a prospectus issued for the ASX-listed company’s proposed acquisition of unlisted Australian public company Ausmex Mining, Eumeralla said it was evaluating investments in Australia “in light of the relative lack of success in commercial development” for its mineral exploration ventures in Myanmar and Mongolia.
Following the acquisition, Ausmex’s business will become the principal business of the company, which will be renamed Ausmex Mining Group. The principal assets of Ausmex are an exploration licence in South Australia and its rights to acquire interests in tenements in the Cloncurry region of Queensland.
Ausmex aims to generate revenues through small-scale gold/copper production opportunities to fund exploration and asset growth.
Following completion of the acquisition, the proposed directors of the new company do not intend to pursue existing opportunities in Myanmar and will seek a strategic partner for, or divestment of, the interests in the Myanmar joint venture.
The proposed directors consider that the Chuluun Khoroot tungsten project in Mongolia has potential and propose to continue the company’s Mongolian exploration program at least in the short term.