Myanmar Metals (MYL) is now fully funded to exercise its share of the Bawdwin option. The Company has reached a binding agreement with Perilya for a strategic cornerstone investment of up to A$14.9m at $0.06/sh. Perilya will emerge with up to 19.9% of MYL’s outstanding shares following the upcoming proposed share placement of up to A$35m. Perilya’s parent company Zhongjin Lingnan is China’s largest integrated zinc producer with a Market Cap of US$3.4b. The speed and upfront quantum of their investment confirms the quality of the Bawdwin asset. MYL’s largest shareholder Mark Creasy, has also signed a binding agreement to invest an additional $4.2m. We believe Perilya’s investment is analogous to Guangdong Rising Assets Management’s (GRAM) cornerstone investment to PanAust (ASX:PAN) in 2009, which ultimately led to a $1.2b takeover. GRAM is Zhongjin’s major shareholder. MYL is capped at <$40m and earning a majority stake in arguably the best undeveloped polymetallic project globally.
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