PERTH (miningweekly.com) – ASX-listed Mayur Resources has completed a A$5.5-million capital raise, to advance its flagship Central cement and lime project, in Papua New Guinea (PNG), with the company raising the potential disaggregation of this asset.
The company on Tuesday reported that more than 15.7-million chess depositary interests were placed at a price of 35c each to professional and sophisticated investors.
“These funds will enable the further diversification of Mayur’s share register with shareholders aligned with our vision of nation building in PNG, while minimising the dilution of existing shareholders,” said MD Paul Mulder.
“Importantly, the increased funding will allow management to achieve the next value accretive project development milestones, such as quick lime offtake, while also examining other opportunities to increase shareholder value.”
The Central cement and lime project is now fully permitted and shovel ready, with the proceeds from the capital raise enabling Mayur to focus on offtake, early quarry operation cash flow opportunities, and strategic partnerships to enable the project to proceed into production.
Mulder told shareholders that Mayur’s current share price did not reflect the de-risking of the projects, and in particularly, the de-risking of the Central project.
“As such, and giving consideration to the projects being development ready, the board is considering the potential for the further disaggregation of our current conglomerate, such as the recently announced copper/gold spin-out, to enable these assets to be valued by the market as standalone businesses and to be taken forward to full development with a management team that has a singular purpose and focus.”
Mulder said that a disaggregation could potentially add substantial value uplift from spinning out the Central project, the Orokolo Bay industrial sands project, and the copper and gold asset.
Mayur in September announced plans to spin out and list is PNG gold and copper assets into a TSX-V-listed entity, and the acquisition of privately-held Ballygowan and Pacific Arc Aurum, which hold highly prospective gold assets in PNG, including the Gameta and Wapolu projects on the Fergusson Islands.