- Myanmar Metals (MYL) has executed a binding agreement to acquire a 100 per cent interest in two exploration licences (EL) at the Wuntho Project in Myanmar
- To acquire the 100 per cent interest and explore the area — prospective for gold, silver, copper and base metal mineralisation — Myanmar Metals will pay $4 million to shareholders of Myanmar Reserves Development Company
- This $4 million will consist of $400,000 in cash and $3.6 million worth of MYL shares
- Additionally, a $200,000 deposit will be paid within five days, with half non-refundable upon the completion of due diligence
- Shareholders will receive a 1 per cent net smelter return (NSR) on all products produced from the project
- Myanmar Metals is up 12.1 per cent on the market and shares are trading at 9.3 cents
Myanmar Metals (MYL) has executed a binding agreement to acquire a 100 per cent interest in two exploration licences (EL) at the Wuntho Project.
To acquire the 100 per cent interest, Myanmar Metals will pay $4 million to shareholders of Myanmar Reserves Development Company (MRD).
This sum will consist of $400,000 in cash and $3.6 million worth of MYL shares, which will be priced based on MYL’s 10-day volume-weighted average price.
Shareholders will receive a 1 per cent net smelter return (NSR) on all products produced from the project with a cap set at US$15 million (around A$19.3 million).
A $200,000 deposit will be paid within five days, with half non-refundable upon the completion of due diligence.
“We are very pleased to reach this agreement with MYL. A core principle of this agreement was that our shareholders are able to maintain equity participation in the Wuntho Project through swapping their MRD shares for shares in MYL,” MRD Director Trevor Lane said.
“I believe we will now all benefit from a well-funded, committed and experienced team to explore this excellent porphyry prospect,” he added.
Once the acquisition goes through, Myanmar Metals will receive two exploration licences — the Wuntho North Block, which covers 88.78 square kilometres, and the Wuntho South Block, which covers 65.1 square kilometres. There are also two other exploration licences which Myanmar has applied for.
The Wuntho Project lies within the Popa-Loimye Magmatic Arc in Myanmar, Southeast Asia. It is prospective for gold, silver, copper and base metal mineralisation.
“We have taken our next step in building a leading regional base and precious metals focused mining company,” Chairman and CEO John Lamb commented.
“Two main things drew us to the Wuntho Project: it bears the hallmarks of a large-scale copper-gold porphyry system and well defined, near drill ready targets have been identified which could deliver near term results and value for shareholders,” he added.
Myanmar Metals is up 12.1 per cent on the market and shares are trading at 9.3 cents at 12:46 pm AEDT.