https://www.engineeringnews.co.za
Business|Cement|Construction|Financial|Manufacturing|PROJECT|Resources|Manufacturing
Business|Cement|Construction|Financial|Manufacturing|PROJECT|Resources|Manufacturing
business|cement|construction|financial|manufacturing|project|resources|manufacturing-industry-term

Mayur’s Orokolo Bay partner faces ‘sudden financial difficulties’

21st February 2024

By: Creamer Media Reporter

     

Font size: - +

Australia-based Mayur Resources said on Wednesday that its partner in the Orokolo Bay vanadium, titanium and iron sands project, in Papua New Guinea, had pulled out, citing “sudden financial difficulties” related to the depressed state of the global nickel market.

Mayur and Indonesia-based PT SEA First Nickel Industry (PTSFNI) last month entered into a cooperation agreement, which would have secured the project’s construction and operational finances.

As part of the strategic partnership, PTSFNI would have also gained ownership exposure to Mayur’s Central Lime project and other company assets by agreeing to acquire a 9.9% stake in the parent company at 21.99c a share.

The price represented a 25% premium to the then 30-day volume-weighted average price. However, given that Mayur’s share price is currently trading at a 43% premium, the company agreed with PTSFNI that it no longer had the opportunity or right to acquire such proposed stake, stating that it would not be fair, or reasonable to Mayur shareholders to do so.

Should PTSFNI’s financial situation improve, the companies could re-engage on similar terms previously announced, in the absence of other development partners for Orokolo Bay.

“While the Orokolo Bay project is an attractive asset, and the Mayur board is disappointed at these developments, Mayur purposely embarked upon a structure to bring in a 51% majority controlling strategic investor, as the asset is viewed as a noncore asset.

“Mayur’s focus is to become a carbon-neutral downstream processing lime and cement manufacturing business,” it said.

Edited by Creamer Media Reporter

Comments

 

Showroom

Showroom image
Alcohol Breathalysers

Supplier & Distributor of the Widest Range of Accurate & Easy-to-Use Alcohol Breathalysers

VISIT SHOWROOM 
John Thompson
John Thompson

John Thompson, the leader in energy and environmental solutions through value engineering and innovation, provides the following: design, engineer,...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Magazine round up | 12 April 2024
Magazine round up | 12 April 2024
12th April 2024

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







sq:0.245 0.305s - 224pq - 2rq
Subscribe Now