Updated Argonaut Note, page-36

MYL

The thing I'm most concerned about is the sovereign risk.

High in the mountains of Myanmar’s northern Shan state, a remote and volatile corner of this remote and volatile country, sits one of the most intriguing mineral projects in the hands of an Australian company. That's our Baldwin mine.

The problem is that this is in the Shan State where civil war persists between the Burmese army and the Shan State Army.

See background.

The Shan State Army was founded in 24 April 1964 and The Shan State Progress Party was founded in 1971, for the political wing of SSA. In 1989, the SSPP signed a ceasefire in 1989 after negotiations with the SLORC and was able to obtain a degree of autonomy for the areas under its control, establishing the Special Region 3 of the Shan State. This area included Nam Kham, Langkho, Hsipaw, Kyauk Mae, Mong Hsu, Tang Yang, Mongyai, Kehsi and Lashio Township. The size of the armed group at that time was of about 4.000 fighters. Even after having signed a ceasefire, the Burmese military continued to attack the Shan State Army-North areas.[4]Although the SSA-N is more conciliatory towards the government than other armed Shan separatist groups, in 2005 it abandoned its base rather than disarm.[5] At one point the Burmese government wished the Shan State Army - North to join its border guard force. Two of the three brigades reportedly agreed to join the border guard, while the other refused.Renewed hostilities[edit]In 2014 the group has clashed with the Burmese army in Kehsi Mansam Township, home to the SSA-N Wanhai headquarters.[6]Beginning on 6 October 2015 a large scale offensive by the Tatmadaw comprising 20 Burma Army battalions has been launched in central Shan State. The aim of the military is to seize Shan ceasefire territories in Kehsi, Mong Nawng, Mong Hsu and Tangyan townships, using heavy artillery and with fighter jet and helicopter gunship air support to indiscriminately shell and bomb civilian areas. These attacks have displaced thousands of Shan, Palaung, Lisu and Lahu people causing a new humanitarian crisis.[7][

In short the SSArmy don't beleive they should have to hand over all there lands and mineral wealth to the interests which all route back to the powers ex the burmise army which still control through powerful interests and puppet politicians.

I have no experience in this area, however having just watched a documentary with a journo spending time with the SSArmy they seem to have reasonable grounds and no other option but to fight till the death.  And hold onto the assets in the state which they clearly feel belong to the Shan people and not Burmas elite 

Would value your thoughts Kalenn having been there.

Regards DH