Debt Term Sheet Executed for Central Lime Project

Mayur Resources Limited (ASX:MRL) (Mayur or the Company) is pleased to announce that it has executed an exclusive non-binding term sheet with Appian Capital Advisory (Appian) to fund its Central Lime Project (CLP) (the Term Sheet). Appian are a private capital fund that invest solely in mining or mining related companies with over US$3.5 billion of assets under management.

Key Points:

• US$90 million total debt funding package to be made available with US$70 million drawn initially to support the CLP’s ‘base case’ of 400,000 tonnes of Quicklime per annum and a further US$20 million available for quicklime kiln expansions.
• Funding is priced at competitive terms and tenor.
• Combined with the US$40 million equity investment in the CLP by Vision Blue Resources (Vision Blue), this debt will see the CLP fully funded.
• The phase one ‘base case’ CLP is expected to produce an annual EBITDA exceeding US$25 million whilst
• generating hundreds of jobs.
• The CLP will be a major import displacer for PNG being its first downstream processing resource industrial manufacturing hub that will also become the nearest import source of Quicklime, hydrated lime and crushed lime stone for Australia.
• The Term Sheet is subject to a number of conditions precedent which are customary for a transaction of this nature including confirmatory due diligence.

Mayur’s Managing Director, Paul Mulder, commented:

"We are delighted with our progress towards securing the required debt funding. The project landowners, PNG Government Ministers and their respective Authorities have been extremely welcoming and are fully supportive in establishing the first downstream processing resource industrial manufacturing hub in PNG. The execution of this exclusive term sheet bodes well with this week’s announcement of Vision Blue converting its term sheet into an executed Investment Agreement representing a US$40 million investment (being 100% of anticipated required equity) for a 49% stake in the CLP. Appian has taken comfort in this milestone and recognised the potential to expand the CLP facilities in offering an additional funding line that would see the CLP be recognised regionally as a major Quicklime producer to service domestic and international markets. Securing the proposed debt funding package would position Mayur to enter the Final Investment Decision phase and subject to a positive decision, subsequently commence full scale construction of the CLP.”

The ‘base case’ of the CLP in Phase 1 is expected to generate annual revenues and EBITDA of over US$50 million and US$25 million respectively over an initial project life of 30 years.** Additionally, the CLP will create hundreds of jobs while having capacity to replace all of PNGs current imports of lime valued at approximately K$100 million (A$42.8 million) per year, and service the broader Asia Pacific region. Over time, the CLP will form the core of PNG’s first downstream processing resource industrial manufacturing hub.

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