IGO to record impairment against nickel assets in strategy shift
IGO has been undertaking a strategic review in an attempt to revaluate its resources.
Appian Capital Advisory LLP, which advises on funds investing in mining and related companies, has agreed to provide a $115 million loan and royalty financing to Mayur Resources (ASX: MRL) and its Central Lime project in Papua New Guinea (PNG).
Together with Vision Blue’s previously announced $40 million equity funding, this financing provides 100% of the remaining funding required to complete Central Lime project’s (CLP) construction works to achieve nameplate annual base-case production capacity of 400,000 tonnes.
Under the terms, Appian is providing a $63 million senior facility and a $7 million royalty on the CLP, along with a $22.2 million overrun facility and a further $22.2 million for future expansion beyond base-case capacity.
With near-term production targeted within 18 months of financial close, the CLP is located within Mayur’s single-factory special economic zone, close to both domestic and overseas markets in Australia and Asia.
The project has government support in PNG, creating local jobs and with the potential to meet 100% of domestic quicklime requirements, Appian noted in a news release.
“CLP is well-positioned to be a leading asset capable of producing low-cost lime products necessary for metal processing, and strategically located close to end-markets in PNG, Australia and Asia,” Appian CEO Michael Scherb said in a statement.
“This new investment allows us to fully fund the asset into production, creating a lime product producer that is set to benefit from strong domestic and regional demand,” Paul Mulder, managing director of Mayur Resources, added.
“The CLP will be a transformative development for PNG, the associated Landowner communities and PNG’s industrial sector, while contributing to the clean energy transition by providing a key input to the processing of metals in the Asia-Pacific region.”
