PERTH (miningweekly.com) – ASX-listed Mayur Resources has secured up to $25-million in funding from China Titanium Resources Holdings to develop its Orokolo Bay industrial mineral sands project, in the Gulf of Papua.
In exchange for the funding, China Titanium Resources will be given a 49% stake in Mayur subsidiary MR Iron PNG (MIPP), which holds the Orokolo Bay project where pilot-scale bulk sampling is planned to start in the third quarter of this year.
Under the terms of the agreement, China Titanium would fund 50% of the maximum budget for the Stage 1 pilot plant, with Mayur to provide the remaining funding, and China Titanium to be responsible for any funding in excess of the agreed-upon maximum budget.
Should the decision be taken to proceed with the Stage 2 full plant, China Titanium would fund the capital expenditure for this operation, subject to the total funding requirements for both Stages 1 and 2 not exceeding $25-million.
China Titanium will receive a 2% equity interest in MIPP for each $1-million in funding contributed, with the company’s total interest capped at 49%.
Mayur MD Paul Mulder said on Monday that Mayur would maintain a 51% interest in the mineral sands exploration licence portfolio held by MIPP across the Gulf of Papua.
The Orokolo Bay industrial sands project has a Joint Ore Reserves Committee-compliant resource of 86-million tonnes of industrial construction sand, 173-million tonnes of magnetite at 9.2% iron, and 107 000 t of zircon.