Myanmar Metals Ltd. is planning to raise A$30 million through a share placement and an entitlement offer for its flagship Bawdwin lead-silver-zinc joint venture in Myanmar.

The company said May 21 that it will use the proceeds for a definitive feasibility study, drilling, early capital works, ongoing project maintenance, approvals and permitting, and for working capital purposes.

The single-tranche placement includes an offer of about 319.9 million shares to raise up to A$20.8 million at 6.5 Australian cents per share.

The underwritten, nonrenounceable entitlement offer is for up to 142.2 million shares on the basis of one new share for every nine shares held to raise up to A$9.2 million.

The entitlement offer will open May 31 and close June 17.

A recent pre-feasibility study for the starter pit at Bawdwin outlined a net present value, discounted at 8%, of US$580 million, a 30% internal rate of return and a four-year payback period.