Mayur appoints US$350m debt, equity finance team
Mayur Resources Limited appointed Morgans Financial Limited (Morgans) and KPMG corporate finance (KPMG) to secure circa US$350 million in project finance for its Central cement and lime (CC&L) project, located 25km west of Port Moresby.
In a announcement this month, the 100-percent Mayur owned project has a target annual production of 1.65 Mt cement / clinker and 200,000t quicklime for supply of products to PNG and Australia.
With the definitive feasibility study 1 complete, a mining lease application submitted and a reserve of 78 million tonnes from a 382 million tonne limestone JORC resource, the final phase of project financing has now commenced.
Morgans have been appointed as financial advisers to identify, assess, and shortlist potential equity investors with a particular focus on Australia and the Pacific.
KPMG will provide equity-based advice and introductions covering the rest of the world.
KPMG will also act as the lead debt financing advisor and lead manager.
The appointments are now in place to execute a funding plan that contemplates a mix of equity (30 per cent) and debt (70 per cent) from various sources.
Mayur seeks to raise US$120m in equity (US$100m plus US$20m contingency) and US$230m in debt funding for the project.
Mayur managing director Paul Mulder said “our objective is to achieve a project financing solution without having to seek funding from MRL shareholders, yet still retain exposure to the flow through economics via a material retained interest in the project.
“This then provides shareholders with a value accretive position compared to MRLs current market capitalisation.
This investment strategy has already been successfully deployed with our industrial mineral sands portfolio, where as previously announced, a funded solution has been secured at the Singapore subsidiary level via the deal with CRTH enabling MRL to retain control and also 51 per cent of the ‘Future Economics’ of the Orokolo Bay Project, which equates to circa A$70m.”
Mr Mulder said the combined transaction advisory team was industry-leading with relevant deal flow an extensive network with which to access regional and global capital markets.
“These appointments will present investors with a first mover opportunity to gain exposure to a Tier 1, low cost, long-life, vertically integrated clinker, cement, and quicklime project in a growing economy on Asia’s doorstep that is strategically located to capture PNG’s domestic market and the import markets of Australia and other Pacific Nations” Mr Mulder added.