Mayur achieves major milestone with US$155 million for Central Lime Project in Papua New Guinea

CLP is set to boost domestic manufacturing and green metals processing in the region

SYDNEY, April 22, 2024 /PRNewswire/ -- Mayur Resources Limited (ASX:MRL) today announced the full funding of its flagship Central Lime Project (CLP). The CLP will be the cornerstone of PNG's first downstream manufacturing processing hub, displacing 100% of the country's imported lime products and making it a major exporter of Lime in the Australasian region.

Mayur has executed definitive debt financing agreements with Appian Capital Advisory LLP (Appian) for approximately US$115 million. This, combined with Vision Blue Resources' (Vision Blue) equity investment of US$40 million announced in November 2023, will fully fund the CLP.

The US$155 million funds construction to achieve an annual base case nameplate production capacity of 400,000 tonnes, along with an allocation for expected further expansion. First quicklime production is expected to begin 18 months after the financial close.

Mayur's Managing Director, Paul Mulder, commented:

"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. As the nation's inaugural industrial downstream manufacturing processing hub, the CLP will create hundreds of jobs and materially contribute to the clean energy transition by providing a key input to the processing of energy transition metals in the region."

"The project has successfully attracted finance from both Appian and Vision Blue, bringing both debt and equity to the table in a first for PNG. This investment sets the foundation to showcase PNG's vast potential for small to medium manufacturing projects connected to its natural resources."

"The support provided by the PNG Marape-Rosso Government is a testament to their commitment to supporting downstream processing and assisting in attracting such reputable investment funds into PNG's first Single Factory Special Economic Zone. Such support now sets the scene for PNG to compete with the hundreds of billions of dollars already invested into Southeast Asian Special Economic Zones."

Appian Capital Advisory CEO & Founder, Michael W. Scherb commented:

"Appian is excited to partner with Mayur and Vision Blue on the Central Lime Project in Papua New Guinea. CLP is a leading asset, set to produce low-cost lime products for metal processing, strategically located close to end markets in Australia and Asia. The project will also play a pivotal role in highlighting foreign direct investment in PNG, supporting the country's growing industrial sector. This collaboration showcases the ongoing success of Appian's dedicated credit and royalties offering, highlighting the significant value our team brings to the delivery of mining assets globally."

Mayur has secured US$155 million (A$235 million) through a combination of debt and equity comprising approximately US$115 million in a senior secured loan and royalty financing arrangement from Appian, a leading metals and mining private equity and credit investor and US$40 million in an equity funding from Vision Blue, a clean energy battery metals transition investment vehicle led by Sir Mick Davis, in exchange for a 49% equity stake in the CLP (with Mayur retaining a 51% majority stake).

Combined, the debt and equity package provides 100% of the funding required to complete the base case construction works, implement onsite carbon reduction initiatives and enter commercial production, with Mayur's share of annual EBITDA from the base case expected to be US$12.8 million (A$19.4 million)(a). Additionally, US$22.2 million of Appian funding is earmarked to contribute to a potential expansion which could double production capacity and associated EBITDA through construction of additional kilns on the CLP project site.

For more information, please contact:Reign Advisorye: mrl@reignadvisory.comp: +61 2 9174 5388

About the Central Lime Project

The Central Lime Project ("CLP") is Stage 1 of a vertically integrated manufacturing facility with the ability to meet 100% of PNG's raw lime, lime, hydrated lime, and other building material requirements, creating a new manufacturing industry and displacing imports into PNG, with the ability to penetrate nearby export markets in Australia and APAC. When constructed, the co-located quarry, plant site and deep draft wharf will enable scalable production of high-grade limestone, aggregates and lime products at low operating costs within the first quartile of the global cost curve. The CLP is also seeking to become Asia Pacific's first carbon-neutral producer, seeking to service and meet increasing demand from the critical minerals and battery metals processing sectors in support of the global energy transition.

Mayur expects first revenues by way of raw limestone sales from the CLP in H2 2024, with annual Stage 1 EBITDA for the project of US$25 million.

The CLP will create hundreds of jobs, while having capacity to replace all of PNGs current imports of lime valued at approximately K$100 million (A$42.8 million) per year, and service the broader Asia Pacific region.