The $115m senior secured loan and royalty financing arrangement from Appian comprises $70m to help CLP achieve its base case nameplate capacity, and a $22.2m over-run facility and a $22.2m for expansion beyond base case capacity


Mayur secures $155m funding for Central Lime Project. (Credit: Zac Edmonds on Unsplash)

Australia-based industrial sand mining company Mayur Resources has executed definitive debt financing agreements with Appian Capital Advisory, for a total of around $115m.

The senior secured loan and royalty financing arrangement of around $115m from Appian comprises $70m to help CLP achieve its base case nameplate capacity.

It also includes a $22.2m over-run facility and a $22.2m for expansion beyond base case capacity.

Mayur previously announced an equity funding of $40m from Vision Blue, a clean energy battery metals transition investment vehicle, in exchange for a 49% equity stake in the CLP.

The financing, together with Vision Blue Resources’ $40m equity investment, would help the Central Lime Project (CLP) be fully funded.

Mayur would use the funding to cover the construction costs to achieve the nameplate production capacity of 400,000 tonnes, along with an allocation for expected further expansion.

The first quicklime production is expected to begin 18 months after the financial close.

Mayur managing director Paul Mulder said: “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.

“Hundreds of new jobs, support service businesses, electricity, roads, education/health facilities are all part of the benefits that will be created for landowners, whom to date, have lacked such basic services and have been negatively impacted by isolation.

“As the nation’s inaugural industrial downstream manufacturing processing hub, the clp will also materially contribute to the clean energy transition by providing a key input to the processing of energy transition metals in the region.”

Mayur started the construction of the CLP in mid-2023 with primary activities to date being the wharf infrastructure.

With the wharf infrastructure started early, Mayur is allowed to optimise construction logistics and shorten the project’s development schedule.

In addition, the company is anticipated to generate early revenues through the sale of raw limestone aggregate from this wharf during the construction of the kilns.

Appian Capital Advisory CEO and founder Michael Scherb said: “Appian is excited to partner with Mayur and Vision Blue on the Central Lime Project in Papua New Guinea.

“CLP is a leading asset, set to produce low-cost lime products for metal processing, strategically located close to end markets in Australia and Asia.

“The project will also play a pivotal role in highlighting foreign direct investment in png, supporting the country’s growing industrial sector.

“This collaboration showcases the ongoing success of Appian’s dedicated credit and royalties offering, highlighting the significant value our team brings to the delivery of mining assets globally.”