25/05/2018 - 14:26

Perilya, Creasy invest $19m in Myanmar

25/05/2018 - 14:26

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Chinese-owned mining company Perilya will take a 20 per cent stake in Myanmar Metals as part of a planned capital raising worth up to $35 million to fund its share of the Bawdwin base metals project.

Perilya, Creasy invest $19m in Myanmar
John Lamb says the company is delighted to have secured Perilya as a cornerstone investor.

Chinese-owned mining company Perilya will take a 20 per cent stake in Myanmar Metals as part of a planned capital raising worth up to $35 million to fund its share of the Bawdwin base metals project.

Perilya has agreed to invest $14.9 million at 6 cents per share and will emerge with a 19.9 per cent interest in Myanmar.

Perilya is owned by Chinese zinc producer Zhongjin Lingnan.

Western Australian prospector Mark Creasy’s Yandal Investments, which already has shares in Myanmar, has confirmed it will invest $4.2 million in the placement to hold a 12.6 per cent stake in the company.

Myanmar holds an exclusive option to acquire a 51 per cent interest in the Bawdwin project (in the country of Myanmar) alongside Win Myint Mo Industries and East Asia Power Mining Company.

The binding commitments from Perilya and Yandal mean that Myanmar’s share of the Bawdwin option exercise is now fully funded.

“After a comprehensive global process, we are delighted to have secured Perilya as our cornerstone 19.9 per cent shareholder,” Myanmar chief executive John Lamb said.

Perilya is an ideal strategic investor with a wealth of experience in zinc, lead and silver mining operations and metals marketing.”

Perilya’s managing director Paul Arndt said the investment sat well with the company’s strategy.

“Our team has a long and successful history of extending mine life and developing new projects in multiple jurisdictions and we look forward to applying those skills and contributing to the development of the Bawdwin project,” he said

“We are very excited to be able to take a strategic stake in MYL and partner with MYL’s strong management team to develop this project to its full potential.”

Myanmar said it expects to announce its updated scoping study in coming weeks.

Argonaut acted as financial adviser to Myanmar Metals in relation to the Perilya financing and is lead manager to the proposed placement.

If the company raises less than $35 million under the placement, Perilya’s deposit will be refunded to the extent that it gives it a 19.9 per cent stake in Myanmar.

Shares in Myanmar were up 5.17 per cent at 6.1 cents each at the close.

 

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