Mayur Resources has finalised debt financing agreements with Appian Capital Advisory, securing around $115m (A$178.3m) for its Central Lime Project (CLP) in Papua New Guinea (PNG).

This funding is a significant step towards achieving the project’s base case nameplate capacity and potential expansion.

Of this amount, $70m will be allocated to reach the CLP’s base case nameplate capacity, with a $22.2m over-run facility and an additional $22.2m earmarked for expansion beyond the base case capacity.

This adds to Vision Blue Resources’ $40m financing, announced in November last year, which would offer Vision Blue a 49% stake in the CLP. The latest infusion, along with Vision Blue’s investment, will ensure that the project is fully funded.

The funds will be used to cover construction costs for an annual production capacity of 400,000t, with provisions for further expansion.

Mayur is set to complete the remaining conditions precedent to the debt and equity funding in the second quarter of calendar year 2024, which include securing product offtake agreements, appointing construction contractors, and finalising project documentation and approvals with the PNG Government.

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Upon meeting these conditions, the company anticipates announcing financial close. The first quicklime production is expected to commence 18 months after this milestone.

Additionally, Mayur, as the parent company, will receive reimbursement for early construction costs related to wharf development, bolstering its working capital.

Located within a special economic zone in Port Moresby’s North-Western Growth Corridor, the CLP is poised to enhance domestic manufacturing and green metals processing.

It will also serve as the nearest supplier of quicklime, hydrated lime, and crushed limestone to Australia, offering supply chain resilience and reduced logistics costs and carbon emissions.

Construction of the CLP began in mid-2023, with the wharf infrastructure being the primary focus. This early start has allowed Mayur to streamline construction logistics and shorten the overall project timeline.

The company also anticipates generating early revenue through the sale of raw limestone aggregate from the wharf during the kiln construction phase.

Mayur has reported Joint Ore Reserve Committee (JORC) mineral resource estimates of 382 million tonnes (mt) of limestone within CLP’s mining lease.

The original feasibility study utilised just 30mt of this resource, indicating significant potential for future investment and expansion, including the addition of more kilns to scale the project’s annual EBITDAs (earnings before interest, taxes, depreciation and amortisation).

Mayur managing director Paul Mulder said: “Today marks the key funding milestone in delivering the CLP, which will be a transformative development for Papua New Guinea’s Landowners, Central Province and the broader manufacturing sector.

“Hundreds of new jobs, support service businesses, electricity, roads, education/health facilities are all part of the benefits that will be created for landowners, whom to date, have lacked such basic services and have been negatively impacted by isolation.

“As the nation’s inaugural industrial downstream manufacturing processing hub, the CLP will also materially contribute to the clean energy transition by providing a key input to the processing of energy transition metals in the region.”