SYDNEY, AUSTRALIA: Vision Blue Resources, a company led by former Xstrata CEO Sir Mick Davis, has signed an Investment Agreement with Mayur Resources Limited (ASX:MRL) to acquire a 49% stake in its Central Lime Project (CLP) in Papua New Guinea for US$40 million.

The deal, which was announced in August 2023, is subject to certain conditions and would provide the CLP with the necessary equity funding to complete its development and construction.

The CLP is a vertically integrated lime and cement project that aims to produce high-quality lime products for various environmental and renewable energy sectors, such as carbon capture and storage, water treatment, and soil remediation. The project also has the potential to become Papua New Guinea’s first downstream processing resource manufacturing hub, displacing imports and creating hundreds of jobs for local landowners and the domestic economy.

Mayur and Vision Blue are also working together to secure debt financing of between US$70-90 million, which would enable the CLP to expand its production capacity beyond its ‘base case’. The project has already started the construction of its wharf infrastructure, which could generate early cash flow in 2024 through the sale of high-grade limestone.

Paul Mulder, Mayur’s Managing Director, said: “We are thrilled to partner with Vision Blue on the Central Lime Project. Vision Blue recognises the pivotal role the Central Lime Project can play in meeting the escalating demand for Lime across various environmental and renewable energy sectors. Their Proposed Investment is a testament to the value and potential of this project both from a commercial perspective and for the immense benefits it will bring to local landowners and the PNG domestic economy. The enhancement of living standards and benefits for local landowners remain at the forefront of our mission. We look forward to continuing our relationship with the team at Vision Blue and are confident in the mutual success this partnership will bring.”

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