Mayur Resources Limited (ASX: MRL) has made a significant stride forward with its Central Lime Project (CLP) in Papua New Guinea (PNG), announcing a US$50 million investment package from ACAM LP and other investors. This investment includes an initial US$10 million Convertible Note, with the remaining US$40 million committed as equity financing, pending certain conditions. This capital injection underscores the growing potential of the CLP, which is well-positioned to serve the fast-growing and supply-constrained Asia-Pacific markets.
Funding Boost for CLP Construction and Expansion
The US$10 million Notes financing will provide essential capital to support ongoing construction activities for the CLP, retire existing debt, and bolster the company's working capital. The additional US$40 million equity funding will progress the project to full-scale commercial production, which is expected to commence 18 months after the Final Investment Decision (FID).
Convertible Notes Structure and Terms
The US$10 million Notes are unsecured and carry a maturity date of 31 October 2026. They bear an interest rate of 10% per annum, payable quarterly in arrears. Mayur has the option to capitalize the interest throughout the term of the Notes. These Notes can be converted into common shares at a fixed conversion rate of A$0.2425 per share, unless redeemed earlier by the company. Mayur retains the right to redeem the Notes at 110% of their face value, offering flexibility in managing the investment.
Strategic Importance of the Central Lime Project
The investment highlights the strategic importance of the Central Lime Project, which holds a long-life, high-quality resource ideally located to supply the rapidly growing Asia-Pacific markets. Lime is a critical material used across a wide range of industries, with essential roles in sectors such as clean energy, battery materials, and agriculture. The CLP is set to play a key role in addressing the region’s lime demand and contributing to the local economy in PNG.
Chairman’s Remarks and Next Steps
Richard Pegum, Chairman of Mayur Resources, expressed confidence in the investors' commitment to the project:
“We welcome the commitment of the investors and look forward to progressing towards full funding for the Central Lime Project. The US$10 million Convertible Note will enable us to retire existing debt and provide critical support for corporate and construction activities as we approach the Final Investment Decision.”
With the US$10 million expected to be received imminently, the company’s next steps involve finalizing subscription and shareholder agreements while assessing additional debt financing options to achieve full funding for the CLP’s development. The FID is expected to be made by the end of the calendar year.
Mayur’s Vision for Sustainable Growth
Mayur Resources is focused on delivering sustainable solutions for the Asia-Pacific region’s path to decarbonization. With a diversified asset portfolio spanning lime, cement, battery minerals, and renewable energy projects, Mayur is positioned to be a key player in the region’s industrial and energy transition. The company remains committed to engaging with host communities and adhering to internationally recognized Environmental, Social, and Governance (ESG) standards.
