MYL - Mallee Resources

[Dona Ferentes]

Many people have an antiquated view of Myanmar. Myanmar has come a long way in just a decade and is now opening up.
A sense of belonging as an investor in a listed entity is quite rare today.
Just like all junior mining companies; you either trust management and buy the story, or you don't.
I trust management, trust that Myanmar has changed and is on a trajectory of opening up to bring greater prosperity to their people, and I have trust in the project/resource.
Australia has built diplomatic relations with Myanmar over the last decade and Myanmar is part of the ASEAN Economic Community.
There is greater sovereign risk investing in jurisdictions like Australia when looking at Queensland and Adani.

Mmmm. I trust there is no margin loan outstanding.

 

[Dona Ferentes]

In a statement to the ASX on Wednesday, Myanmar Metals executive chairman and chief executive John Lamb said the company had been thrown a takeover offer by Yintai Gold.

Due to the coup, Myanmar Metals had already halted its proposed acquisition of the Wuntho copper-gold project and had ditched an opportunity to pile into a separate gold project with Locrian Precious Metals.

Yintai has offered 3.5¢ per share - half the price Myanmar Metals traded at prior to the halt.

 

[Metal Teeth]

3.5¢? They can stick that up their Cadbury alley. Can't think of a time in history when a military coup has ended with a return to the status quo, but with a decent amount of foreign investment in the country surely we can come away with a better deal.

 

[Dona Ferentes]

Can there be life after Myanmar for Myanmar Metals when it gets rid of its mine in the benighted country, changes its name and departs?

Management certainly is hoping for a rebirth (and to join the hunt for renewable metals such as copper and nickel), even though the market seems to be sceptical.

On 17 August it revealed the proposed sale of its 51% stake in the Bawdwin silver lead prospect in Myanmar; that it will get $US30 million (or around $A40 million) from the sale, if its shareholders approve the sale at a meeting on September 24.

That’s the lower of two offers – the other is a conditional, non-binding $A55 million offer from Chinese mining giant Yintai Gold

The board though is urging shareholders to accept a lower, but less risky take-over offer.

Executive chairman and chief executive John Lamb said in Wednesday’s statement the company was disappointed what has happened since a military coup earlier this year, saying he believed the company could have used Australian know-how on “a great mineral deposit” to the benefit of everyone.

Instead, the company will now look for another project with base, battery, and precious metals. He has put forward a name change to Mallee Metals.

(ionic clay REE, p'raps?)

 

[Dona Ferentes]

Can there be life after Myanmar for Myanmar Metals when it gets rid of its mine in the benighted country, changes its name and departs?

In Wednesday’s letter Mr Lamb cast doubt on whether Yintai Gold was serious. Mr Lamb said to the best of the company’s knowledge, Yintai has not completed its due diligence, visited the site, or contacted other mine owners.

Myanmar Metals has also received a $40.8 million offer from its joint venture partner WMM, which requires less regulatory approval, but is only 2.1¢ per share. The board is urging shareholders to accept the lower offer from its joint venture partner, WMM because it is less risky.

“WMM’s offer provides shareholders with certainty and a timely exit from Myanmar and, perhaps to labour a point already made, taking the shortest path to the completion of a transaction reduces exposure to further adverse events,” Mr Lamb wrote.

Myanmar is also looking at a share consolidation would likely see a 10-for-1 consolidation to boost the trading price (its last sale was 7 cents back in February) and reduce the number of shares on issue to a more manageable 200 million.

 

[System]

On October 11th, 2021, Myanmar Metals Limited changed its name to Mallee Resources Limited.

 

[Dona Ferentes]

Who is Mallee?
▪ Well funded explorer / developer with ~A$ 50 M. in cash and receivables and no debt
▪ Experienced team of mining professionals
▪ Track record in base, battery and precious metals
▪ Ability to deal with complexity and challenges geology, metallurgy, topography, logistics, geotechnics and permitting processes
▪ Strong environmental, social and governance principles
▪ Supported by cornerstone shareholders Perilya Limited and Mr Mark Creasy

The future of Mallee
▪ An asset led process to find attractive new projects
▪ A focus on ‘off market’ / non competitive opportunities
▪ Our search process will honour our corporate DNA and prioritise quality opportunities with a favourable stage of life, commodity type and jurisdiction
▪ MYL seeks to build a profitable and resilient business that will generate value for shareholders

and a 10 for 1 Consolidation of shares

 

[Dona Ferentes]

Who is Mallee?

The future of Mallee

JUNE 2022 QUARTERLY ACTIVITIES REPORT

Highlights

• Mallee has completed the acquisition of the Avebury nickel sulphide project via a deed of company arrangement for Allegiance Mining Pty Ltd
• Binding agreement to acquire EL5/2020, a highly prospective exploration licence adjacent to the Melba Flats licences
• Binding agreements reached with Hartree Metals LLC (Hartree) including a life of mine offtake agreement, subscription agreements for loan facilities, a hedging agreement and security documentation
• Commencement of mining operations at Avebury
• Processing plant refurbishment works well advanced ahead of planned Q3 commissioning
• Prospectus to support the proposed capital raising and the Company’s reinstatement to trading on the ASX well advanced

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Everything old is new again. Thought it rang a bell. From 2008:

Oz Minerals Ltd will close its flagship Avebury nickel mine in Tasmania with the loss of 189 jobs, due to the low price of the metal.
Chief executive Andrew Michelmore said the company had been forced to make a hard decision given the financial challenges facing the company.

AGM - Allegiance Mining

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