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Mayur Resources (ASX:MRL) eyes fresh capital

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ASX:MRL      MCAP $121.4M
16 December 2021 15:32 (AEDT)
Mayur Resources (ASX:MRL) - Managing Director, Paul Mulder

Source: Paul Mulder/LinkedIn

Mayur Resources (MRL) has placed its shares in a trading halt in regards to an upcoming capital raising.

The company’s shares will remain in the halt until the earlier of December 20 or when an announcement with further details is released.

Mayur is yet to disclose how much it intends to raise or what it will be using the money for.

Just yesterday, Mayur announced it had executed a binding term sheet for its Orokolo Bay Project in Papua New Guinea (PNG).

Under the term sheet, PNG-based HBS will complete a staged investment in Mayur’s PNG subsidiary for 20 per cent of the issued capital in Ortus Resources who is set to complete an initial public offering (IPO) early next year.

This investment will support construction work, plant and equipment with construction set to begin in February.

Mayur last tapped investors for cash in mid-May when it undertook a $2.5 million placement.

The funds were raised through the issue of 12.5 million CHESS depositary interests (CDIs) to new and existing investors at 20 cents.

Mayur stated it would use the money to provide working capital for its ongoing disaggregation strategy.

Shares in Mayur last traded at 22 cents on December 15. The company has a $48.86 million market cap.

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