Myanmar seeks $10m for Bawdin

Perth-based Myanmar Metals has sought up to $9.5 million from a capital raising to go towards the restart of its Bawdin mine.

The company is planning an operational restart in late 2022, with the silver-lead-zinc asset situated near the town of Namtu in Myanmar. 

It is a joint venture between Myanmar Metals, which owns a 51 per cent interest, East Asia Power Global Co and Myanmar-based Win Myint Mo Industries. EAP and Win Myint each hold a 24.5 per cent stake.

Win Myint acquired Bawdin in 2009 and the mine since remained on care and maintenance.

In mid-2018, Myanmar Metals exercised its option to buy its stake in the asset.

The JV will become the world's third-largest lead producer and a top-ten silver producer once operations recommence, Myanmar says.

The proceeds raised from a placement and SPP would go towards exploration efforts and early site development at Bawdin, as well as towards exploration at Myanmar's Tarlay copper-gold project.

A drilling program at Bawdin is planned for early next year, Myanmar chief executive and chairman John Lamb said.

“Our pursuit of growth through exploration complements the mine development phase that Bawdin is entering into and provides a path to long-term sustained growth,” he said.

Myanmar will issue about 93.3 million shares under the placement, priced at 7.5 cents per share.

The SPP is priced on the same terms as the placement, which is being led by Argonaut Securities and Sydney-based Foster Stockbroking.