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Myanmar Metals Limited (ASX: MYL) is engaged in the business of mineral exploration within Myanmar. The company has a 51% interest in the world-class Bawdwin polymetallic project.

The company has recently released a presentation related to the equity raising, where it announced the single tranche placement of around 319.9 million new fully paid ordinary shares to raise up to $20.8 million using the MYL’s existing placement capacity under the exchange listing norms.

The company’s offer price of $0.065 per new share, represents a 7.1% discount to the closing price as on 20th May 2019 of $0.070 per share, 15% discount to 10 Days VWAP of $0.0765 per share, and 17.6% discount to 30 days VWAP of $0.0789 per share.

The company has received total binding commitments of $7.4 million from Perilya (Perilya Ltd) and Yandal (Yandal Investments Pty Ltd), which has resulted in a pro-forma shareholding of 19.99% and 12.54%, respectively. The company has appointed Argonaut Securities Pty Limited as Lead Manager and Sole Bookrunner, whereas Patersons Securities Limited will act as Co-Manager to the Placement.

The issued new shares under the placement scheme will be listed on the Australian Exchange (ASX) and rank pari passu with the current fully paid ordinary shares. This placement has been completed without any disclosure to Eligible Investors. New Shares will be qualified for the secondary trading under the Corporations Act. Settlement of the new share placement is likely to take place on 29th May 2019, with the shares expected to be issued and start trading on ASX (on a normal settlement basis) the following day.

With the completion of a $20.8 million Equity Raising Placement Program, the company will be in a strong position to advance Bawdwin to a decision to mine. With the equity proceeds of $20.8 million, a cash balance of $6.0 million and option exercise proceeds of $5.5 million, the total sources of funds stand at $32.3 million. The company has already recognized the deployment of this fund to be spent largely on the definitive feasibility studies.

Bawdwin Project enjoys over 600 years of mining history with the status of a largest producing lead mine in the 1930’s. Concession area for the company covers 38 sq. kms under a Production Sharing Agreement with Myanmar Government entity, which also includes a critical project infrastructure and transportation corridor.

Bawdwin’s current resources place the project amongst the greatest lead and silver mines and projects in the world. Bawdwin project is placed 1st on the global Top 15 primary lead projects by contained lead metal. As far as contained silver metal is concerned, the project comes at 9th place among the global Top 15 primary silver projects.

Bawdwin Starter Pit PFS delivers robust economics based on a 13-year Starter Pit processing only 26% of the currently defined Mineral Resources of 94.2 Mt. Starter Pit is concentrated on the central China Lode and will be mined 220 metres below the current valley floor for an initial 13-year mine life.

The company has developed a full project pipeline at Bawdwin. The Starter Pit is Phase I of the mining operations, followed by Shan and Meingtha underground mines.

MYL is well positioned to become a leading regional base metals producer with a world-class resource of 94.2 Mt at 4.2% Pb, 107g/t Ag, 2.1% Zn and 0.2% Cu, which is open in all directions. Additionally, Probable Ore Reserve is comprised of 18.4 Mt at 6.4% Pb, 169g/t Ag and 3.4% Zn. The Existing Mining Concession & Production Sharing Agreement provides a path for the company to accelerate the re-development program going forward.

The stock of MYL is currently trading at a price of A$0.071 on ASX (as at AEST: 3:43 PM, 24 May 2019).


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