MARK Creasy-backed Myanmar Metals is continuing its due diligence on acquiring the Bawdwin zinc-lead-silver-copper mine has dropped its interest in acquiring a zinc refinery and another mine in the south east Asian country.
LeadSilverZincMyanmar Metals LtdTop End MineralsMyanmar
Formerly called Top End Minerals, Myanmar said it hadn’t been given enough time to ascertain the value of the Lashio zinc refinery and hence wouldn’t be exercising an option to acquire a 60% stake in Cornerstone Resources, owner of Lashio and the non-operational Longh Keng mine.
Myanmar further said that one of Cornerstone’s major shareholders had refused to countenance an extension of the option timeframe.
Meanwhile Myanmar expects to “shortly” report an initial resource at Bawdwin for a section of lower grade “halo” mineralisation.
Myanmar signed an option back in May to acquire Bawdwin for US$20 million, with the operation having reserves back in 1938 of 11 million tonnes grading 14% zinc, 23% lead, 1% copper and 670 grams per tonne silver that were subsequently depleted by mining.
However based on work and estimates in the 1990s, Myanmar believes Bawdwin “may be one of the largest underdeveloped zinc-lead-silver-copper deposits globally”.
Last month Myanmar paid a $1.5 million option fee, with successful prospector Creasy providing funds for the payment.
Earlier this week Myanmar raised A$3 million by issuing new shares at 4c each. Shares in Myanmar closed Thursday up 14% at 6.4c, capitalising Myanmar at $28.5 million.
TND Price at posting:
6.2¢ Sentiment: Buy Disclosure: Held
