ASX-listed Mayur Resources has entered into an investment agreement with Vision Blue Resources (VBR) that could see the Mick Davis-led group partner with the company on the Central Lime Project (CLP), in Papua New Guinea. 

In terms of the agreement, which is subject to certain conditions, VBR could invest $40-million for a 49% equity stake in CLP.

The CLP is Phase 1 of a vertically integrated manufacturing facility with the ability to meet 100% of Papua New Guinea’s raw lime, lime, hydrated lime, and other building material requirements.

When constructed, the co-located quarry, plant site and deep draft wharf will enable scalable production of high-grade limestone, aggregates and lime products.

“We are thrilled to partner with Vision Blue on the Central Lime Project,” said Mayur MD Paul Mulder on Monday.

“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,” he added.

The VBR investment would satisfy the CLP’s total equity funding component to complete project development and construction, implement onsite carbon reduction initiatives, and enter commercial production.

Mayur said it was working with VBR to secure debt financing of between $70-million and $90-million. Funding at the higher end of that range would accelerate the expansion of the CLP beyond its ‘base case’.

Construction of the CLP’s wharf infrastructure started earlier this year, which Mayur said would potentially allow for early cash flow generation in 2024 through the sale of high-grade limestone.

In addition to being a major import displacer, the CLP will create hundreds of jobs nearly immediately, and will also be Papua New Guinea’s first downstream processing resource manufacturing hub.

The ‘base case’ of the CLP in Phase 1 is expected to generate yearly revenues and earnings before interest of over $50-million and $25-million respectively over an initial project life of 30 years. 

Further, the CLP will create hundreds of jobs while having capacity to replace all of Papua New Guinea’s current imports of lime valued at about K$100-million (A$42.8-million) a year, and service the broader Asia Pacific region.