Name of the Project
Central lime project (CLP).

Location
About 25 km north of the capital, Port Moresby, in Papua New Guinea (PNG).

Project Owner/s
Mayur Resources.

Project Description
The CLP will be Asia Pacific’s first carbon-neutral quicklime, clinker and cement project for supply to PNG, Australia and the South Pacific at much lower costs than Asian exporters.

The project is aiming for a base case nameplate production capacity of 400 000 t and will be developed in two phases.

Phase 1 will involve the construction of the quicklime plant, with a capacity of  600 000 t/y of quicklime and 700 000 t/y of limestone.

Phase 2 will involve the development of clinker and cement facilities producing 820 000 t/y and 900 000 t/y respectively.

Opportunities exist for future expansion.

Potential Job Creation
The project is expected to provide employment opportunities for at least 1 000 people.

Net Present Value/Internal Rate of Return
Not stated.

Capital Expenditure
Mayur Resources executed definitive debt financing agreements with Appian Capital Advisory for about $115-million in April 2024. This financing, combined with Vision Blue Resources’ (VBR’s) proposed equity investment in the project of $40-million, announced in November 2023, will result in the project’s being fully funded.

Planned Start/End Date
Construction of the CLP started in mid-2023.

Latest Developments
Mayur Resources has secured a significant funding commitment for CLP, with investors ACAM and other backers agreeing to subscribe to $10-million’s worth of convertible notes and commit a further $40-million in equity, subject to conditions.

The convertible note agreement is expected to fund construction activities for the CLP, provide working capital and help retire existing debt, while the equity portion is aimed at taking the project to full-scale commercial production within 18 months of the final investment decision (FID).

The $10-million in convertible notes, set to mature in 2026, bear a 10% yearly interest rate, payable quarterly. Investors may convert the notes into Mayur shares at a fixed price of A$0.2425 a share or they can be redeemed by the company at 110% of face value prior to maturity.

The funds from this note issuance are expected imminently, providing immediate liquidity for the project’s early-stage construction activities and corporate needs.

The second phase of investment, a $40-million equity financing, will be contingent on several conditions, including satisfactory debt arrangements and shareholder approval. Investors are expected to acquire 44% of the CLP Project Company upon completion of the equity transaction.

Mayury is now focusing on finalising agreements and meeting outstanding conditions, with an FID expected by the end of the year.

The $40-million equity is replacing the funding that Mick Davis' Vision Blue Resources would have invested for a 49% equity share in the CLP.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Mayur Resources, tel +61 7 3157 4400 or email info@mayurresources.com.