K194mil investment

MAYUR Resources Limited (MRL) has signed a non-binding exclusive term sheet with S and F Investment Advisors Limited and ACAM LP (the investor), for a proposed US$50 million (about K194.9 million) investment in MRL and its MR Central Lime PNG Pte Limited subsidiary.
ACAM will become a “substantial shareholder” in MRL at completion.
MRL chairman Richard Pegum said additionally, “the company is also pleased to announce an A$5 million (about K12.9 million) placement to existing sophisticated investors, to fund stage two and part of stage three wharf facilities for MRL’s Cement and Lime Project (CLP), located in the Central”.
“This will provide the CLP with commercial scale wharf infrastructure, enabling opportunity for early cash flow opportunities in calendar year 2024 from raw limestone production,” he said.
“We are pleased to have entered this arrangement with ACAM LP, which represents a transformational investment for MRL.
“ACAM LP’s proposed investment will enable MRL to push ahead with our mission of developing mineral projects that deliver higher quality, lower cost, inputs for the mining and construction industries.
“The A$5 million (about K12.9 million) share placement with existing sophisticated investors will be integral to our CLP, ensuring that the early construction work can continue for the benefit of the ongoing development of the project with the aim of producing early cash flow revenues in late 2024.
“The work completed by S&F Investment Advisors to date, including a site visit and the commencement of discussions with our debt financier, Appian, further gives me confidence in their ability to swiftly go through their final confirmatory phase.”
Ross McCormick, of S and F Investment Advisors, said: “We and ACAM are pleased to have entered into this non-binding exclusive term sheet with the company following a period of due diligence and productive discussions with key PNG ministerial and government agency heads in Port Moresby.
“The Government re-enforced that MRL’s long-term commitment to downstream processing and export manufacturing is highly welcome and supported by the Government.
“Our site visits to the CLP provided firsthand insights into MRL’s potential to become a world-class building materials supplier.”
ACAM LP is a prominent global investor in the natural resources sector.