Australia-listed Mayur Resources on Monday announced complete funding for its flagship Central Lime Project (CLP), marking a step towards positioning Papua New Guinea as a major lime exporter in the Australasian region.

The financing, totaling $155-million, has been secured through a combination of debt and equity arrangements.

Mayur has inked definitive debt financing agreements with Appian Capital Advisory amounting to about $115-million, alongside Vision Blue Resources’ equity investment of $40-million, which was announced in November.

With the financial backing secured, construction of the CLP is set to start, targeting yearly production capacity of 400 000 t/y, with provisions for future expansion.  

“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,” said MD Paul Mulder.

He highlighted the project’s potential to generate employment opportunities and contribute to the country's clean energy transition, particularly in the processing of energy transition metals.

Appian Capital Advisory CEO and founder Michael Scherb said the project not only showcased foreign direct investment in Papua New Guinea, but also bolstered the country's industrial sector.

The financing structure comprises a senior secured loan and royalty financing arrangement from Appian, as well as equity funding from Vision Blue. Mayur retains a 51% majority stake in the CLP, with Vision Blue holding a 49% equity stake. The combined financial package covers all construction costs for the base case, including carbon reduction initiatives, with Mayur's projected yearly earnings before interest, taxes, depreciation and amortisation (Ebitda) from the base case estimated at $12.8-million.

Further, a portion of the Appian funding has been allocated for potential expansion, which could double production capacity and associated Ebitda through the construction of additional kilns on the CLP site.

Lime is deemed a critical input in the processing of nonferrous battery and future green-facing metals, including nickel, cobalt, lithium and copper.