Australia-headquartered Myanmar Metals plans to divest 51pc stake in lead, zinc and silver project in Myanmar amid social unrest in the country. The company is finding it difficult to secure $300mn funding for the project.
Myanmar Metals holds a majority of 51pc stake in Bawdwin which is a silver, lead and zinc project in Myanmar held with two local project partners, Win Myint Mo Industries and EAP Global Co.
The company has been facing ongoing challenges for investment and project operations in Myanmar since the State of Emergency was announced on Feb 1, 2021.
The company’s ability to proceed with the development of its mineral projects and benefit from any future mining operations would entirely depend on market factors, said the company in a statement. The company anticipates any revenues derived from mining will primarily be obtained from the sale of zinc, lead and silver metals.
Risks in continuing work in Myanmar that are now outside the control of the company may including labour unrest, civil disorder, war, subversive activities or sabotage, fires, floods, explosions or other catastrophes, epidemics, or quarantine restrictions.
Such difficulties have led the company to commence the process of divestment. The company seeks other potential acquirers while waiting to hear from Yintai Gold with whom it is actively seeking a deal.