Funds raised in a placement by Myanmar Metals will enable it to extend the option over the Bawdwin Zinc-Lead-Silver-Copper Project in Myanmar through to May 2018. The company has received binding commitments for the raising of $7 million.
The company received considerable demand from investors in Australia and Asia for the placement through lead manager Triple C Consulting Stockbrokers.
As well as extending the option, as planned, the funds will help Myanmar Metals advance due diligence at Bawdwin and fund general working capital expenses.
Executive chairman and CEO John Lamb said, “We are grateful to new and existing shareholders for their support for this placement. The pricing of the placement, which represents a 16% discount to the 5-day VWAP, is reasonable for such a raising and the level of demand received is a strong vote of confidence in the company’s strategy and the potential that investors see in the Bawdwin asset.
“Bawdwin is a world-class asset with enormous unlocked value. Over recent months we have completed an initial JORC resource on remnant and adjacent, lower grade ‘halo’ mineralisation and commenced a scoping study through our key consultants CSA Global.
“Corporately, we have secured a cornerstone shareholder in Mark Creasy’s Yandal Investments and have secured an experienced and industrious executive team. We intend to continue the rapid pace of development demonstrated by your new Board since we took over in June 2017.”
A scoping study for Bawdwin is expected to be completed this month.
The company’s Myanmar partner in the project is Win Myint Mo.