Mayur’s subsidiary signs term sheet for Gulf project


Mayur Resources Ltd says its 100 per cent-owned subsidiary MR Iron PNG Pte Ltd (MIPP) has signed a legally-binding term sheet with China Titanium Resources Holdings Ltd (CTRH) relating to development of Mayur’s Orokolo Bay industrial mineral sands project in Gulf.
Pilot scale bulk sampling is planned to commence in Q3 of the 2019 calendar year.
The Orokolo Bay project is proposed to be developed in two stages.
Mayur Resources managing-director Paul Mulder said: “CTRH brings core operational capability in mining these types of projects.
“In addition to providing development capital funding, CTRH will also take on working capital and operational risk through the Orokolo Bay pilot plant phase while agreeing to take on funding responsibility up to US$25 million (K84 million) and build the stage 2 full-scale plant.
“This is a positive outcome for Mayur shareholders, where an external funding pathway has been secured whilst Mayur retains a 51 per cent stake in the potential future economics of the US$106 million (K357 million) NPV of the Orokolo Bay project as documented in the pre‐feasibility study that was included in the Mayur prospectus.
“MRL still also retains a 51 per cent interest in the mineral sands exploration license portfolio that MIPP holds across the Gulf of Papua, that offers the potential for further expansion projects.
“Having the operational expertise of CTRH, with their proven capability in low-cost mining and quarrying, will assist Mayur in putting PNG on a fast track process to becoming a mineral sands exporter.”
Mulder added: “Bilateral ties will increase with Australia, Japan and China with multiple products coming from the mineral sands operation.
“Our focus is to bring employment, spin-off business opportunities for the people of Orokolo Bay and work with the people to ensure there will be clarity in detail around what such an operation will mean.
“Now having secured an operating and funding partner, we will progress the project alongside CTRH whilst progressing our national building and import displacement strategy for PNG.”
The legally-binding term sheet is expected to be converted into definitive transaction documents before the end of this month.
The Orokolo Bay project is extremely simple with no requirement for chemical processing, grinding or tailings dams.
The process involves simple near surface ripping and then sand extraction that is separated by gravity spirals and low intensity magnets (LIMS), with the vast majority of the sand being placed back from where it was taken, enabling rehabilitation to occur almost immediately after mining, leaving a minimal foot print.