Myanmar receives $66m takeover bid

A Chinese exploration company has made a bid for West Perth-based Myanmar Metals, which is planning for an operational restart at the Bawdwin silver and lead project.

On Wednesday, Myanmar said it had received a non-binding, conditional proposal from Yintai Gold to acquire all of its shares on issue for 3.5 cents each, representing a total consideration of $66.5 million.

Yintai is a subsidiary of industrial development and investment group China Yintai Holdings, headquartered in Beijing.

Myanmar said it was not aware of any relevant interest Yintai held in the company or if it would receive a formal offer “capable of being accepted” by shareholders.

“Given the number of conditions to provide an offer including a site visit, the completion of further legal, technical and financial due diligence to Yintai’s satisfaction and final internal investment approvals, there is no guarantee that a formal offer will be made by Yintai,” Myanmar said.

“It should be noted that site based due diligence enquiries may present a logistical challenge at this time due to the political situation in Myanmar and restrictions on travel due to the COVID-19 pandemic.”

Led by chief executive John Lamb, Myanmar said it would work with Yintai to facilitate the subsidiary's due diligence process, with the aim of entering into an implementation agreement and presenting a formal offer to shareholders.

Myanmar said shareholders should take no action during this time.

“MYL will provide additional updates to the market as the matter progresses,” the company said.

Its Bawdwin project is a past-producing lead and silver mine, located near the town of Namtu in the Shan State of Myanmar.

The mine has remained on care and maintenance since 2009.

In June 2018, Myanmar Metals exercised an option to acquire a 51 per cent interest in the project from state-owned mining entity Win Myint Mo Industries, and the Bawdwin joint venture was formed.

It also includes East Asia Power, which holds a 24.5 per cent interest in the JV (equal to Win Myint Mo’s shareholding).

Myanmar Metals has raised more than $30 million since acquiring a majority stake in the project, with some of those proceeds applied to feasibility and environmental studies, as well as exploration.

The company is planning for an operational restart at Bawdwin in late 2022.

Myanmar is being advised by Thomson Geer and Livingston Legal on the Yintai offer.