MYL AND WMM SECURE MAJOR MYANMAR INDUSTRIAL
COMPANY TO INVEST IN BAWDWIN PROJECT
ASX Announcement 28 March 2018
- Bawdwin now substantially de-risked with new local partner, East Asia Power (Mining) Company Limited (EAP) investing in the project.
- EAP has significant mining and processing expertise as managers of Longh Keng zinc mine and Lashio zinc refinery in Myanmar.
- EAP has a strong affiliation with one of Myanmar’s largest industrial conglomerates.
- WMM and EAP will hold 49% of Bawdwin and MYL will hold a majority 51% interest and operational control.
- EAP to reimburse a proportion of costs incurred to date by MYL on Bawdwin, including the cost of option fees and extension fee totalling US$3 million.
- EAP will contribute pro rata to all future costs including the Bawdwin option exercise fee of US$20 million – MYL’s contribution to option fee now reduced to US$13.9 million.
- Bawdwin’s development now underpinned by substantially invested local companies and MYL’s expertise and access to global capital markets.
Myanmar Metals Limited (“MYL” or “the Company”) advises that together with its local partner, Win Myint Mo Industries Co., Ltd (WMM), it has secured EAP, a company with strong affiliations to one of Myanmar’s largest and most respected industrial companies, as a project-level investor in the development of the global tier-1 polymetallic Bawdwin Mine.
In a transaction that substantially de-risks the future development and financing of Bawdwin, MYL is delighted to have agreed terms with East Asia Power (Mining) Company Limited (EAP), where EAP will effectively acquire a 24.5% share of the Bawdwin Concession and Mine in return for reimbursing costs MYL have incurred to date and sharing in the payment of the pending option fee that secures the tenure over Bawdwin.
EAP owns and operates a manganese mine and a coal mine in Myanmar and also manages the operations of the Longh Keng high grade zinc mine and Lashio zinc refinery on behalf of Cornerstone Resources Myanmar Limited; shareholders of which include Mark Creasy’s Yandal Investments. Its mining expertise is significant.
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