Mayur Resources raises A$100m—what it means for the Central Lime Project

Mayur Resources Limited has successfully completed an upsized institutional placement, securing approximately A$100.1 million in funding. The capital raise, which exceeded the previously announced A$80 million target, highlights robust investor confidence in the company’s Central Lime Project.

The placement was structured into two tranches: the first tranche, valued at A$29.8 million, has already been secured, while the second tranche, worth A$70.3 million, is pending shareholder approval. The company’s pro forma cash balance as of 31 December 2024 is expected to reach A$105.3 million, providing financial security for the project’s initial two stages.

Mayur Resources’ Executive Chairman, Richard Pegum, attributed the strong investor demand to the high-quality nature of the Central Lime Project. He emphasised that the additional A$20.1 million raised above the initial target would enhance working capital and provide contingency funding during development.

Central Lime Project fully funded with Appian financing support

The funds raised through the placement, along with the proposed US$115 million debt financing package from Appian, are expected to ensure the full funding of Stages 1 and 2 of the Central Lime Project. The project involves the construction of four kilns, with two kilns projected to generate an annual EBITDA of US$34.5 million, leading to a total estimated EBITDA of US$70 million once fully operational.

Mayur Resources expects to accelerate construction activities in the coming months, with the company reaffirming its commitment to delivering the project on time and within budget.

Investor enthusiasm and placement structure

The placement saw strong demand from a range of high-quality Australian and international investors, including existing shareholders. The offer price of A$0.28 per new Chess Depository Interest (CDI) represented a 13.5% discount to the 15-day volume-weighted average price (VWAP) of A$0.324 before the announcement.

Tranche 1 of the placement was executed within the company’s existing ASX Listing Rule capacity, with settlement expected on 26 February 2025. Tranche 2, contingent on shareholder approval at an Extraordinary General Meeting in late March 2025, will contribute the remaining A$70.3 million.

Key players in the transaction

Barrenjoey Markets Pty Limited acted as the lead manager and underwriter for the placement, while Jones Day provided legal advisory services. The placement also included a A$3 million pre-commitment from Appian CCL Investments (UK) Ltd., subject to the satisfaction of conditions tied to the Appian debt financing package.

Looking ahead: Mayur Resources’ strategic vision

Mayur Resources remains focused on its broader strategy of developing natural resources and renewable energy projects in Papua New Guinea. The company’s diversified portfolio includes iron and industrial sands, cement, forestry carbon credits, battery minerals, and renewable power generation. Additionally, it holds a 19.6% stake in Adyton Resources, a copper-gold explorer listed on the TSX Venture Exchange.

As Mayur Resources advances its Central Lime Project, investor interest signals confidence in the company’s long-term growth strategy and its role in Papua New Guinea’s infrastructure development.