ASX-listed Mayur Resources on Tuesday announced the termination of its investment agreement with Vision Blue Resources (VBR) for the Central Lime Project (CLP), in Papua New Guinea, citing irreconcilable differences over conditions precedent.
The cancellation enables Mayur to pursue alternative funding avenues for the CLP, the company said in a statement.
VBR, led by Sir Mick Davis, would have invested $40-million for a 49% equity share in the CLP. The investment would have satisfied CLP’s total equity funding component to complete project development and construction, implement onsite carbon reduction initiatives and enter commercial production.
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. Over time, the CLP will form the core of Papua New Guinea’s first downstream processing resource manufacturing hub.