Funding, Latest news, PNG, Projects

Mayur deal steps into the limelight

Mayur Resources’ Central Lime Project (CLP) in Central Province has welcomed a proposed $US50 million ($74.8 million) investment deal.

The proposed funding comes from prominent global investor ACAM LP in the form of a non-binding exclusive term sheet.

When the dust settles on the deal, ACAM will become a substantial shareholder in Mayur.

The deal will also see a $5 million share placement added to the mix, which Mayur Resources chair Richard Pegum said will be used to fund Stage 2 and part of Stage 3 wharf facilities for the CLP.

“We are extremely pleased to have entered this arrangement with ACAM LP, which represents a transformational investment for Mayur,” Pegum said.

“ACAM LP’s proposed investment will enable Mayur to push ahead with our mission of developing mineral projects that deliver higher quality, lower cost, inputs for the mining and construction industries.

“The $5 million share placement with existing sophisticated investors will be integral to our CLP, ensuring that the early construction works can continue for the benefit of the ongoing development of the project with the aim of producing early cash flow revenues in late 2024.

“The work completed by S&F Investment Advisors to date, including a site visit and the commencement of discussions with our debt financier, Appian, further gives me confidence in their ability to swiftly go through their final confirmatory phase.”

Once the deal between Mayur and ACAM is completed, the funding will be used to retire $9.2 million of Mayur debt.

“We and ACAM are pleased to have entered into this non-binding exclusive term sheet with the company following a period of due diligence and productive discussions with key PNG ministerial and Government agency heads in Port Moresby,” S&F Investment Advisors’ Ross McCormick said.

“The PNG Government re-enforced that Mayur’s long-term commitment to downstream processing and export manufacturing is highly welcome and supported by the PNG Government.

“Our site visit to the CLP provided firsthand insights into MRL’s potential to become a world-class building materials supplier.”

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