Vision Blue Injects $40 Million Into Papua New Guinea Lime Project

Vision Blue Resources (VBR), an UK investment fund focused on battery and technology metals, has agreed to pay $40 million to junior Mayur Resources (ASX: MRL) for a 49% equity stake in its Central lime project in Papua New Guinea (PNG).

The proposed investment by VRB, headed by the ex-boss of the former mining giant Xstrata Mick Davis, is expected to cover the project’s total equity funding requirements for the project. This includes development, construction, onsite carbon reduction initiatives, and ramp up to commercial production, Mayur said.

After completing the deal, Mayur and VBR will jointly finalize debt financing, with the Australian government included in the process, given the stated significance of the Central project to PNG’s economy.

The miner said discussions with key customers looking to secure long-term off-take of “traceable low carbon lime for use in transitional metals production” were also underway.

The company estimates the asset would generate annual earnings of more than $25 million over 30 years in the project’s first phase. First revenues are expected to come in the first half of 2024.

Mayur’s Central lime project is located 25km north of PNG’s capital, Port Moresby, and just 7km from Exxon’s $18.5 billion liquefied natural gas plant.

The Brisbane-based miner says quicklime production (400,000 tpa) will be fast-tracked to respond to PNG and Australian market opportunities, with Indonesian high-pressure acid leach nickel plants said to be in need of vast amounts of lime.

Lime is used in multiple applications including removing impurities in steel making, in the treatment of copper, zinc, lead, gold and silver ore, in road laying, improving crop yields, and in paper, cement and plastic production.

Since its inception over two years ago, Vision Blue has been adding strategic projects to its investment portfolio, including vanadium and graphite assets.

VBR has invested recently in Cornish Metals, NextSource Materials, Ferro-Alloy Resources Group, Serra Verde and Sinova Global.

Davis, who built Xstrata Plc into a $50 billion commodities powerhouse before its merger with Glencore Plc, started VBR with the goal of identifying and capturing opportunities in minerals linked to the global transition to clean energy production and storage.