Mayur Resources (ASX:MRL) has increased its $80 million two-tranche institutional placement to $100.1 million, which will be used to fund the development of the Central Lime Project in Papua New Guinea.
Tranche one has raised $29.8 million and tranche two, which is subject to shareholder approval, is set to raise $70.3 million.
Under the placement, 357.5 million new chess depositary interests (CDIs) will be issued at $0.28 per new CDI which represents a 13.5% discount to the 15-day volume weighted average price of $0.324.
Barrenjoey Markets is acting as the lead manager and underwriter to the placement, while Jones Day is acting as the legal adviser.
Executive Chairman Richard Pegum says the funds raised, coupled with the proposed US$115 million ($179.7 million) Appian debt financing, ensures that the company is well funded for developing stage one and two of the Central Lime Project.
“In total, this includes the construction of four kilns and is forecast to deliver average annual run-rate EBITDA of approximately US$70 million,” Pegum says.
“The company looks forward to ramping up construction of the Central Lime Project over the coming months and delivering on its promise to successfully develop and commission the Central Lime Project, both on time and within budget.”
Once completed, Mayur will have a cash balance of $105.3 million.
Mayur Resources is focused on developing Asia Pacific’s first carbon-neutral quicklime, clinker, and cement project that will meet supply demand in Papua New Guinea, Australia, and Southeast Asia.
Write to Aaliyah Rogan at Mining.com.au
Images: Mayur Resources
