Mayur, Santos eye nature-based carbon offset projects in PNG

Sydney-listed Mayur Resources has executed an expression of interest (EOI) with Santos Ventures, a subsidiary of Santos, to jointly develop a portfolio of nature-based carbon offset projects in Papua New Guinea (PNG), the company said on June 20.

The carbon projects will focus on preserving 1.4mn hectares of rainforest in PNG through avoided deforestation. Phase one development is already being progressed which includes up to 800,000 hectares in the Western Province, Mayur said.

The EOI includes a framework for the future commercialisation of the carbon projects contingent on executing transaction documents along with remaining confirmatory due diligence. The companies have 180 days to execute the transaction documents.

In addition, Santos has provided Mayur with a $3mn facility to 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 calculated three years from the date of execution of the EOI.