$US 40 million Investment for Central Lime Project

By: PNG Business News August 14, 2023

Mayur Resources Limited is pleased to announce that it has executed a Term Sheet with Vision Blue Resources (“VBR”), a clean energy related investment firm led by Sir Mick Davis, for an investment of US$40 million for a 49% equity share in the Project. Mayur believes that the Proposed Investment will be sufficient to satisfy the total equity funding required for completion of the Project’s development and construction works, implement onsite carbon reduction initiatives, and enter commercial production.

The Proposed Investment is subject to a number of conditions precedent including, but not limited to, negotiation of long form investment documents and Project-related documents, securing requested fiscal approvals by applicable PNG government bodies, required debt funding and ongoing commitments to ensure the production of low carbon lime. VBR and Mayur are working together to secure debt financing of approximately US$70 million to fully fund and complete the Project. Due to the Project’s economic significance in the APAC region, including its importance in supporting the critical minerals sector in Australia, the Company is in negotiations with the Australian Government as one of its preferred debt funders with a view to enhancing bilateral ties between the two countries.

Sir Mick Davis, CEO of VBR, said:

"The importance of lime supply to the processing of minerals and metals linked to the energy transition is considerable and the Mayur leadership team’s credentials in this market are world- class. The project in PNG is compelling in terms of its size, scalability and quality, given the high calcium content of the deposit. The Project has an attractive low risk profile which aligns well with VBR’s investment criteria, is fully permitted, construction is underway, and benefits from project developed road and port infrastructure– all located in a strategic location, to support the PNG and greater APAC markets. We look forward to working with the Mayur team to negotiate the long form transaction documents and satisfy the conditions required for the Proposed Investment to complete.”

Mayur’s Managing Director, Mr Paul Mulder, added:

“We are thrilled to welcome VBR, a partner of impeccable pedigree, to collaborate on our Central Lime Project. VBR’s recognition of the pivotal role of lime in meeting the escalating demand across various environmental and renewable energy sectors is evident.”

“The Project will see PNG become a pivotal contributor to the regional and global lime industry, with demand for lime set to continue to rapidly expand as a key input in the global energy transition.”

“The Project also promises substantial benefits for the domestic PNG economy. It paves the way for an import substitution downstream processing business, while providing significant local employment opportunities. The enhancement of living standards and benefits for local landowners remain at the forefront of our mission."

“According to Wood Mackenzie forecast lime consumer demand vs. the producer ‘supply response’ clearly evidences the increasing supply deficit and dislocation in a supply chain being able to respond in the APAC region where material upward pressure on lime prices is forecast. The Australian market in recent times has shown consumers are now willing to import higher grade, cleaner better performing lime from abroad. Collectively with our partners VBR we plan to become a dominant player not only in Australia, but also the APAC region. Indonesia has significant forecast demand for lime in the foreseeable future for its Nickel HPAL (High Pressure Acid Leach) plants, being constructed at an unprecedented rate where again we plan to play a material role. This key downstream processing of its raw minerals opens a sizeable market opportunity in close proximity to the Project, with PNG’s Prime Minister and Indonesia’s President having just last month resolved to markedly pursue increased bilateral trade relations.”

Development of the Project will leverage, and benefit from Mayur’s Executive Team, which includes several veterans from the global lime industry. Notably, it includes Mr. Brad Lemmon, former Executive General Manager of Lime and Cement at Adelaide Brighton; Mr. Campbell Jones, former Managing Director of Sibelco Australia and Americas; Mr. Bruno Wauters, former President of Sibelco South East Asia, and incoming CEO of the Central Lime Project, Mr. John McBride, who served previously as the President of Graymont SE Asia and CEO of Sibelco Lime and will be returning home to PNG having been born in Rabaul.

The Project's strategic location, 24 km from the capital city of Port Moresby and adjacent to the US$18 billion PNG LNG facility, within its own unique Special Economic Zone, provides an extraordinary platform for growth and positions the Project to become a regional lime industry leader. Construction is expected to continue until the middle of 2025 with lime to be produced shortly thereafter. High grade raw limestone will be produced as an early saleable product throughout the construction phase of the lime facility.

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