PERTH (miningweekly.com) – ASX-listed Mayur Resources has raised A$9.7-million through an option underwriting agreement and an institutional share placement to fund a number of project works over the next six to twelve months.

Mayur on Wednesday said that it had entered into an underwriting agreement with Morgans Corporate to underwrite the exercise of 12.18-million unlisted loyalty options and 1.33-million advisor options, which will expire in September this year, at a price of 56c each, to raise an initial A$7.57-million.

The company also raised A$2.1-million through a share placement to institutional and sophisticated investors, and the repayment of loans outstanding to Mayur for 1.5-million loan-funded shares.

“These funding instruments issued at the initial public offering have served to attract additional capital for the company while also enabling those that have been part of the company’s journey to date to become more involved,” said Mayur MD Paul Mulder.

“The underwriting of the unlisted options is a testament to the growing confidence that investors have in the company’s Papua New Guinea nation building projects.”

Mulder said that although the underwriting arrangement did not affect the rights of existing option holders to exercise their vested unlisted options, it did provide the company with certainty over its financing needs until the end of the next calendar year.

“A number of our projects are now at a sufficiently advanced stage in the development cycle that future funding can be conducted at the asset level, with the intention that Mayur’s shareholders can benefit from a flow through of the economics through the company’s retained interest in these projects.

"Funds raised will go towards exploration on Mayur’s coal and copper and gold assets, while also funding the construction of the Orokolo Bay trial bulk sample plant, and the ship product to end-user customers for testing. Funding will also go towards finalising the definitive feasibility study for the Orokolo Bay mineral sands project."