First Dynasty exploring in Myanmar

In keeping with its strategy of focusing on Southeast Asia, First Dynasty Mines (TSE) has signed an exploration agreement with the mines ministry of Myanmar (formerly Burma) for rights to three land blocks.

Each block covers 540 sq. miles in the Monywa area of Upper Myanmar. One of these, Block 2, is in the Wuntho Massif area near Katha, while the others, Blocks 10 and 11, lie in the Mandalay Kyaukse area.

The 5-year agreement requires a minimum expenditure of US$250,000 on each block in the first year. The agreement also contains the terms and conditions of a future 50-50 joint venture between First Dynasty and the ministry, and provides for the completion of feasibility studies.

Steven Stine, vice-president of operations and engineering, says the first-year program will involve stream-sediment and rock-chip sampling, plus geologic mapping. Subsequent work will include more detailed evaluations, such as trenching and drilling, as well as feasibility studies.

The company intends to concentrate its initial efforts on Blocks 10 and 11. Exploration of Block 2 will be carried out by Ivanhoe Myanmar Holdings, which is currently exploring several other blocks in the country.

First Dynasty is eying gold and copper prospects. However, because the mineral potential of Myanmar is largely untapped, other commodities will not be ignored.

Ruled by a stable military dictatorship, Myanmar only recently opened its doors to foreign investment in the mining sector.

In a significant political development, the Myanmar government recently released Aung Sun Suu Kyi, a female political prisoner who won the Nobel Peace Prize in 1991. She had been under house arrest for nearly six years, and her release neutralizes threats of economic sanctions by the U.S.

These and other developments are expected to lead to improved business relations, making it easier for companies such as First Dynasty to work in the country.

In other news, First Dynasty has concluded a US$20-million offering. The company issued 4 million special warrants exercisable for one common share and one half-share purchase warrant.

The funds will be used to reduce debt, finance expenditures at its oil field in Indonesia, and explore its Canadian and Venezuelan properties.