CLP Wharf Operational & Financing Update

By: PNG Business News October 30, 2023

Side Profile of Wharf

Mayur Resources Limited is pleased to provide an update on progress at the Central Lime Project (CLP) and an update on its equity and debt funding package for the CLP.

Mayur’s Managing Director, Paul Mulder, stated: 

"The recent achievements at the Central Lime Project, including the wharf successfully receiving its first shipments, signify more than just construction milestones. They represent our stakeholders’ involvement and support towards establishing PNG’s first downstream processing resource manufacturing hub.”

“With early cashflow avenues targeted for early 2024, our work will benefit all involved and will also bring greater benefits sooner to the local Landowners."

“We continue to be actively engaged towards securing the total debt financing to complement Vision Blue’s’ US$40 million equity investment into our CLP, and look forward to providing further updates within the coming weeks on this front.”

Construction Works

Following construction commencing in June 2023, the inner rubble core of the wharf is now complete. The successful completion of this wharf infrastructure ahead of schedule has allowed for the delivery of larger mobile equipment and fuel storage via barge. This equipment will be used for final armouring of the wharf and to build out the sheet pile faces and finger structure (to circa 10m draft) that will enable double sided barge exports from H1 2024.

Offshore geotechnical works are occurring in the coming months which will enable final placement of the offshore mooring pile structure that will allow up to Handymax size vessels to be able to berth and facilitate domestic and international shipments.

The demonstrated ability of the wharf to transport goods and materials is essential to optimising the logistics supply chain as the CLP enters full-scale construction. It also provides the platform to extend the wharf to enable the CLP to take advantage of potential early cashflow opportunities in 2024, through the sale of high-grade limestone to customers, both domestic and internationally.

Additionally, Mayur is now conducting its final on-shore geotechnical drilling campaign to confirm final placement of the Quicklime Kilns to further de-risk and engineer the design of the lime kiln foundations.

Equity and Debt Financing Update

Following from the proposed US$40 million equity investment from Vision Blue into Mayur’s CLP announced in August 2023, the Company has continued to work closely with Vision Blue and a number of industry leading counterparties towards securing between US$70-90 million in debt funding for the 2 CLP – with funding at the higher end of that range enabling early expansion of the CLP.

With Mayur’s financing activities progressing well, the Company expects to be able to update the market on these positive advancements in the near future.

Mayur expects first revenues from the CLP in H1 2024, with annual Phase 1 EBITDA in excess of US$25 million (A$37.8 million) and more than US$770 million (A$1,164 million) of revenue over the project life of 30 years.

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