Mayur Resources Limited (ASX:MRL) Announces A$80 Million Equity Raising
Equity Raising Overview
Mayur Resources Limited (ASX:MRL) has initiated an institutional placement to raise approximately A$80 million through the issuance of new Chess Depository Interests (New CDIs). The placement comprises two tranches: Tranche 1 aims to raise A$29.8 million by issuing 106.5 million New CDIs, while Tranche 2 seeks to secure A$50.2 million by issuing an additional 179.2 million New CDIs, subject to shareholder approval.
Use of Proceeds
The funds raised from the equity placement will be allocated towards the equity portion of Stage 1 and Stage 2 expansion capital expenditures for Mayur’s Central Lime Project, as well as for general working capital purposes. Specifically, this includes the construction and expansion of lime kilns, hydration operations, and infrastructure enhancements to support increased production capacity.
Project Highlights
The Central Lime Project is a rapidly scalable initiative with a robust economic foundation. Currently under construction, the project includes two lime kilns and hydration operations with a production capacity exceeding 400ktpa. Stage 2 expansion will involve the addition of two more kilns, enhancing the project’s capacity and profitability. The project boasts a long-life resource of 382Mt JORC Resource across two deposits, ensuring over 100 years of operational potential.
Strategic Position
Mayur Resources believes they benefit from a strategic location in Papua New Guinea, offering significant cost advantages in logistics and supply chain management. The company owns and controls its wharf, reducing handling and storage costs, and its coastal deposit minimizes trucking expenses. Additionally, the company believes their experienced board and management team, coupled with strong relationships within PNG, bolster the company’s ability to execute large-scale projects efficiently.
Motley Fool contributor Lianne Eastty 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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