Investors in Mayur Resources’ Central Lime Project (CLP) are set to provide an additional $US40 million ($59.4 million) of equity funding.
The investors have also entered into definitive transaction documents to subscribe for $US10 million ($14.8 million) of convertible notes – a loan that can be converted into shares.
The notes financing will provide funding for construction at the CLP, along with retirement of existing debt and working capital. The remaining $US40 million will be used to progress the CLP to full-scale commercial production.
“We welcome the commitment of the investors and look forward to progressing to unconditional funding of the Central Lime Project,” Mayur chairman Richard Pegum said.
“The $US10 million convertible note will see the retirement of third-party debt and provide the necessary runway for our corporate and construction program, while we work towards considering a final investment decision on the Central Lime Project.”
Mayur is now setting its sights on finalising the subscription and shareholders agreements, final structuring and meeting any outstanding conditions.
Back in August, construction on wharf began at the CLP, with orders made for key construction materials with PNG company Hi-Lift Global.
“Dedicated wharf facilities are strategically important to Mayur’s CCL project,” Mayur managing director Paul Mulder said. “The proximity of the wharf is less than one kilometre from Mayur’s manufacturing facilities and quarries.”
Commercial production is scheduled to commence 18 months from final investment decision.
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