Mayur lining up  offtake partners for PNG quicklime project

Mayur Resources (ASX:MRL) is in discussions with potential local and global offtake partners to ship carbon-neutral quicklime from its Central Cement and Lime (CCL) Project in Papua New Guinea (PNG).   

Speaking to Mining.com.au on the sidelines of this year’s Brisbane Mining and Investors Conference (13 March 2024), General Manager of Corporate Development Daniel Zagorskis says the company is currently in discussions with “a lot” of potential partners in parallel with closing of the debt financing for the project. 

The comments from Zagorskis were given ahead of the $78.98 million market capitalisation company today (15 Mar 2024) receiving firm commitments to raise $9.5 million via a placement. The funds will be primarily used to continue advancing the early development works at Mayur’s Central Lime Project and for general working capital purposes.

Shaw and Partners and Blue Ocean Equities acted as joint lead managers for the placement, which will see 47.5 million chess depository interests (CDI) issued at a price of $0.20 per CDI.

“We’ve got equity investment or an investment agreement executed or signed up with a group called Vision Blue, who, as you might have heard before, were basically founded by Sir Mick Davis, who used to be the CEO of Xstrata before they were taken over by Glencore (LON:GLEN). 

And so we’ve got a private mining and metals fund at the moment, who we’ve signed a debt term sheet in relation to the debt financing. And so really, at the moment, we’re just negotiating that definitive documentation with them so that we can have the financing in place and then effectively achieve a bid and start construction.  

The guys have started building out the pioneering wharf, which is effectively just the first stage of it. So when I say construction, I should specify that really, that refers to the actual plant and facilities and the power generation and stuff that will come with the project.” 

The company’s CCL project sits on the coast of PNG about 25km north of the capital city of Port Moresby and 7km from ExxonMobil’s (NYSE:XOM) PNG LNG facility. 

When asked what makes PNG such an attractive jurisdiction, Zagorskis explains it is the island nation’s untapped potential, coupled with “amazing” orebodies, such as the one uncovered at CCL.  

“So take, for instance, our ore body here. It’s effectively got a dual resource, I believe about 380 million tonnes, which is massive, and about 40 million tonnes in reserves. 

And so our base case is a 30-year mine life at this stage. And there’s a lot of potential to extend that. 

That’s a long way of saying that there’s a lot of really good ore mineralisation around there, which have these awesome ore bodies which you can actually get a great resource or great project out of. 

The project itself is obviously going to be able to provide PNG with its own quicklime, which is a pretty essential thing.

We’re a company that is probably in a part of the world that’s not as well understood and can sometimes be seen as high risk. But I think if people sort of scratch the surface and look a bit deeper, they’ll find there’s a whole wealth of really excellent opportunities there, which is what our company is currently trying to unlock.”

Zagorskis also took the company’s opportunity at the conference to showcase to investors the importance of quicklime. 

“Quicklime is pretty much just such a critical material for processing, remediations, and use of agriculture. It’s got a whole wealth of sort of uses. 

And we see that as something which people should be quite excited about in terms of there’s going to always be a market for the quicklime, effectively. And so that underpins our project and why we think the economics of it really stack up, and it’s a great opportunity for investors.”

Mayur Resources is focused on developing Asia Pacific’s first carbon-neutral quicklime, clinker, and cement project for supply to PNG, Australia, and the South Pacific at much lower cost than Asian exporters.  

Write to Adam Drought at Mining.com.au

Images: Mayur Resources
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.