Eumeralla Resources is confident that it will receive a permit to explore for tin and tungsten in Kayah State of Myanmar within the next few months. This follows negotiations with government authorities over the licence area.
ASX-listed Eumeralla partnered with Myanmar Energy Resources Group (MERG) to apply for the exploration permit covering an area of about 400sqkm in July 2013. The application was made by Mawsaki Mining Co, of which Eumeralla owns 70% and MERG%.
Eumeralla announced in late October 2014 that Mawsaki had received state government approval for the exploration permit. That approval came after negotiations with the Office of the Chief Minister for Kayah State, the Ministry of Forestry and Mines, both the State Forest Department and the State Land Records Department in Loikaw, and the Office of Township Administration, Hpa-sawng.
During 2015 Mawsaki held numerous meetings with the Department of Geological Survey and Mineral Exploration (DGSE) aimed at finalising the agreement, regarding the terms and conditions of the exploration area. It has progressed with the process towards being granted the required approvals to clear the way for consideration of the proposed exploration terms and conditions by Cabinet of Union Government of Myanmar.
Eumeralla understands that approval by the Union Government will be the final step in the approval process and has been encouraged by the smooth progress of the Myanmar National Election held on November 8, 2015, and the formation of a new Government. In addition, reforms to the Myanmar Mines Law (1994) continue to move ahead in Parliament. The company expects the exploration permit to be granted in the second or third quarter of this year.
The company is also encouraged that the first licences have started to be awarded, indicating that the process of licence issuance has commenced.
Eumeralla has recently announced an entitlements issue aimed at raising about A$1.312 million, of which $450,000 will be used to ‘finalise the formal grant process’ and begin exploration in Myanmar.
The company has three separate JV partners in Myanmar with applications pending for several mining leases. The biggest is the Mawsaki JV in Kayah State, which hosts the historical Mawchi tungsten mine. The company’s initial metal focus is on tin and tungsten, although other commodities may be targeted in the future.