Myanmar Metals has issued a formal notice to Win Myint Mo Industries (WMM) that it will exercise the Bawdwin Option with its partner East Asia Power (Mining) Company (EAP).
The combined option fee of US$20 million represents reimbursement of past project expenditure incurred by Concession Holder WMM and will be payable by 18 June 2018. The Company will finance its share of the option payment – amounting to US$13.9 million – with funds raised from the placement of up to A$35 million of MYL shares.
The recently completed 4,368 metre drilling and related test work will provide much greater confidence to the Mineral Resource estimate with the intent of declaring a maiden JORC Compliant Indicated Mineral Resource imminently.
The updated Mineral Resource estimate will be incorporated into an update of the Scoping Study due mid-June.
The Company is focused on the exercise of the option and thereafter, will move into the feasibility phase.
“This is a significant milestone for the Company. Over the past 12 months we have successfully completed our due diligence on the Bawdwin Project and, subject to completion of the Placement, can move forward into feasibility studies”, said Myanmar Metals CEO John Lamb.