Mayur Resources Limited (ASX:MRL) Signs Strategy for Orokolo Bay Project
Partnership Details
Mayur Resources Limited (ASX:MRL) has signed a Binding Term Sheet Agreement with Pacific Unison Holdings Limited (PacUn) to advance the Orokolo Bay Industrial Sands Project (OBP) in Papua New Guinea. This collaboration will enable the initial development phase, with PacUn fully financing the construction and commissioning of the magnetite phase. PacUn has pledged an investment of up to US$10 million to achieve a nameplate capacity of 500,000 tonnes per annum for magnetite concentrate, targeting markets in China, Japan, and North Queensland.
Financial Commitment and Production Timeline
An upfront Commitment Fee of US$500,000 was paid to Mayur upon signing the agreement. The profit-sharing arrangement allows both parties to recover their invested capital before transitioning to a 50/50 profit-sharing model. Initial production is anticipated to begin in the third quarter of 2025, following long lead orders expected in early 2025.
Executive Insights
Paul Mulder, Managing Director of Mayur Resources, stated, “We have taken a pivotal step towards realising the potential of the Orokolo Bay Project as the first Industrial Sands operation in PNG. Our strategic alignment with Pacific Unison Holdings positions them as potential partners in future projects.” He added that this partnership will allow Mayur to maintain focus on its Central Lime and Cement Projects while preserving its balance sheet.
Project Overview
The OBP, located within Mining Lease 541 and Exploration Licence 2305, is fully permitted and construction-ready. The collaboration with PacUn, which includes joint management representation, aims to deliver both economic and social benefits for the region, while also ensuring compliance with environmental standards during the operation.
Future Collaboration
PacUn has secured a first right of refusal to participate in any future industrial sands projects controlled by Mayur, maintaining strategic alignment between the two companies. Both parties aim to finalise long-form agreements within 60 days to commence construction and development of the OBP.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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