Mayur Resources and Pacific Unison Holdings (PacUn) have signed a binding term sheet agreement to progress the Orokolo Bay industrial sands project.
The agreement will see PacUn fully fund the construction and commissioning of the magnetite phase of the project to achieve an initial nameplate capacity of 500,000 tonnes per annum.
“While Mayur has already taken a final investment decision to proceed with the Orokolo Bay project, we have been working on the most appropriate funding structure to best deliver the project,” Mayur managing director Paul Mulder said.
“By partnering with Pacific Unison Holdings, we have taken a pivotal step towards realising the potential of the Orokolo Bay project being the first industrial sands operation in PNG.”
PacUn will cover all development costs associated with site infrastructure, processing plant construction, and initial working capital requirements, amounting to an investment of up to $US10 million.
“The upfront performance bond payment already received demonstrates PacUn’s genuine commitment to fully fund the project and ensure a clear and well-capitalised pathway to production under our shared vision for the project’s economic and community outcomes,” Mulder said.
“Our strategic alignment with Pacific Unison Holdings also positions them as potential partners in future endeavours.”
The Orokolo Bay project is a flagship project within Mayur’s iron and industrial sands portfolio, which includes the Central lime and Central cement projects.
Fully permitted and construction-ready, initial production of Orokolo Bay is targeted to commence in late 2025.
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