Photo credit: Mayur Resources - Project Locations
Mayur Resources Limited has executed an Expression of Interest (EOI) with Santos Ventures Pty Ltd, a subsidiary of Santos Limited, to jointly develop a portfolio of nature-based carbon offset projects in Papua New Guinea.
Under the terms of the EOI, Mayur has agreed to provide Santos with an exclusive period of 180 days (Exclusivity Period) during which Santos and Mayur are to negotiate in good faith and if agreed, enter into binding transaction documents (Transaction Documents) to jointly develop Carbon Projects. The Carbon Projects focus on preserving 1.4 million hectares of pristine rainforest in Papua New Guinea through avoided deforestation. Phase 1 development is already being progressed which includes up to 800,000 hectares in the Western Province. The EOI includes a framework for the future commercialisation of the Carbon Projects contingent on executing Transaction Documents along with remaining confirmatory due diligence.
In addition, Santos has provided Mayur with a US$3 million facility to, amongst other things, fund ongoing detailed feasibility and landholder consent work on the Carbon Projects. If the Transaction Documents are not entered before the conclusion of the Exclusivity Period, this loan will convert to ordinary fully paid shares in Mayur based on a 30-day Volume Weighted Average Price (VWAP) calculated three years from the date of execution of the EOI.
Mayur Resources Chairman, Charles Fear, commented: “We are excited to be partnering with Santos as a major contributor to the PNG economy. This is a transformative transaction for the development of Mayur’s carbon portfolio to help preserve 1.4 million hectares of pristine rainforest which has arguably one of the most biodiverse ecosystems on earth. We are also encouraged that Santos has agreed that together we shall commit to secure premium carbon credit certification and ensure these projects achieve positive social elements to the communities associated with the project offset areas. It is essential that these projects result in the majority of the financial benefits and revenues being provided to the local landowners of PNG.”
Article courtesy of Mayur Resources
