Myanmar Metals (ASX:MYL) secures two ELs at Wuntho Project

Myanmar Metals (MYL) has executed a binding agreement to acquire a 100 percent interest in two exploration licenses (EL) at the Wuntho Project.

To acquire the 100 percent interest, Myanmar Metals will pay $4 million to shareholders of Myanmar Reserves Development Company (MRD).

This sum will consist of $400,000 in cash and $3.6 million worth of MYL shares, which will be priced based on MYL’s 10-day volume-weighted average price.

Shareholders will receive a 1 percent net smelter return (NSR) on all products produced from the project with a cap set at US$15 million (around A$19.3 million).

A $200,000 deposit will be paid within five days, with half non-refundable upon the completion of due diligence.

“We are very pleased to reach this agreement with MYL. A core principle of this agreement was that our shareholders are able to maintain equity participation in the Wuntho Project through swapping their MRD shares for shares in MYL,” MRD Director Trevor Lane said.

“I believe we will now all benefit from a well-funded, committed, and experienced team to explore this excellent porphyry prospect,” he added.

Once the acquisition goes through, Myanmar Metals will receive two exploration licenses — the Wuntho North Block, which covers 88.78 square kilometers, and the Wuntho South Block, which covers 65.1 square kilometers. There are also two other exploration licenses that Myanmar has applied for.

The Winthrop Project lies within the Popa-Loimye Magmatic Arc in Myanmar, Southeast Asia. It is prospective for gold, silver, copper, and base metal mineralization.

“We have taken our next step in building a leading regional base and precious metals focused mining company,” Chairman and CEO John Lamb commented.

“Two main things drew us to the Wuntho Project: it bears the hallmarks of a large-scale copper-gold porphyry system and well defined, near drill-ready targets have been identified which could deliver near term results and value for shareholders,” he added.

Myanmar Metals is up 12.1 percent on the market and shares are trading at 9.3 cents at 12:46 pm AEDT.

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Source: The Market Herald

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