The Asia Miner

JUN 2018

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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Myanmar the asia miner • volume 15 • issue 2 29 EMERGING SE ASIA: Myanmar Myanmar Metals (MYL) and its local partner Win Myint Mo Industries (WWM) have secured East Asia Power (Mining) Company Limited (EAP) as a project-level investor in the development of the global Ɵer-1 polymetallic Bawdwin Mine. In a transacƟon that substanƟally de-risks the future development and financing of Bawdwin, MYL has agreed to terms with EAP, where EAP effecƟvely acquires a 24.5% share of the Bawdwin Concession and Mine in return for reimbursing MYL's costs to date on a pro rata basis. This reimbursement equates to approximately US$1.4 million, with EAP's pro rata contribuƟon to all future costs, including the Bawdwin opƟon exercise fee of US$20 million. The final post-opƟon exercise ownership of equity in Bawdwin between the three parƟes will be MYL 51%, EAP 24.5% and current shareholders WMM 24.5%. This places total ownership by local Myanmar companies at 49%, with MYL retaining a majority interest and management control over the construcƟon, development and operaƟon of Bawdwin. Myanmar Metals CEO John Lamb sees EAP's investment in Bawdwin as a very significant development for MYL. "It de-risks the project considerably. We now have two well recognised and respected local Myanmar companies that will both hold large stakes in the Bawdwin concession," said Mr Lamb. "Their parƟcipaƟon will assist immeasurably with Bawdwin's development. It gives us excellent in-country connecƟons and recogniƟon, and means that a large percentage of Bawdwin's ownership stays within Myanmar. It is the right model for a foreign company like MYL invesƟng in such a rapidly emerging and fast-growing economy." EAP BACKGROUND EAP was established in 2006 for the sole purpose of acquiring and developing mineral resource projects in Myanmar. EAP owns and operates a manganese mine and a coal mine in Myanmar and also manages the operaƟons 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 experƟse is significant. NEXT STEPS ON BAWDWIN PROJECT A diamond drilling program is underway at Bawdwin. This drilling iniƟally targets the 'starter pit' and will lead to an update of the Mineral Resource esƟmate by the end of Q2 2018, with the aim of reclassifying a significant proporƟon of the Mineral Resource within the iniƟal open pit as indicated. This will lead to an updated Scoping Study, which will also incorporate results of metallurgical test-work that is currently underway. The Company is focused on exercise of the opƟon by 21 May 2018. ThereaŌer, a bankable feasibility study will be prepared. A diamond drilling programme is underway at Bawdwin MYL and WMM secure major investor for the Bawdwin Project An overview of the Bawdwin pit

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