Mayur Resources (ASX:MRL) - Managing Director, Paul Mulder
Managing Director, Paul Mulder
Source: The Market Herald
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  • Mayur Resources (MRL) has executed a term sheet for the supply of magnetite to a Japanese trading house
  • Mayur will continue to work on its Orokolo Bay Iron and Industrial Sands project in Papua New Guinea in order to fulfil the supply of magnetite to Asian steel mills
  • Orokolo Bay has a nameplate capacity of 0.5 million tonnes per annum (Mtpa), one Mtpa of high-grade construction sand and up to 10,000 tpa of zircon concentrate
  • Mayur Resources shares are up 2.44 per cent on market close and trading at 21 cents

Mayur Resources (MRL) has executed a term sheet for the supply of magnetite to a Japanese trading house.

Mayur will continue to work on its Orokolo Bay Iron and Industrial Sands project in Papua New Guinea in order to fulfil the supply of magnetite to Asian steel mills.

The term sheet agreement states for both parties to negotiate and finalise commercial sales and purchase contracts, following the satisfaction of multiple buyer and seller conditions.

This includes but is not limited to test results and the sale of a trail shipment following the project’s planned start date in 2022.

According to the announcement the Orokolo Bay project has a nameplate capacity of 0.5 million tonnes per annum (Mtpa), one Mtpa of high-grade construction sand and up to 10,000 tonnes per annum of zircon concentrate.

“Whilst we are unable to announce full details around the term sheet, due to confidentiality provisions, we see this support as a great vote of confidence in our Orokolo Bay project with blue-chip customers continuing to engage with Mayur to source magnetite for their steel-making purposes,” Managing Director Paul Mulder said.

“This deal contributes to the momentum we’ve made recently at Orokolo Bay with the grant of the 20-year Mining Lease as announced yesterday. The project is on track for development and commencement of operations next year.

“Orokolo Bay is the flagship asset in the planned spin out of our iron and industrial sands business on the ASX, to be named Ortus Resources Limited,” he concluded.

“We look forward to bringing Orokolo Bay into production in 2022 and we will use this agreement as an important catalyst to complete the funding requirements for construction now that we have the mining licence, which includes the listing of Ortus Resources on the ASX in 2022,” CEO Simon Slesarewich said.

Mayur Resources shares have risen 2.44 per cent on market close and traded at 21 cents.

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