Mayur Resources (ASX:MRL) executed definitive agreements with Pacific Unison Holdings for the construction and operation of the Orokolo Bay industrial sands project, in Papua New Guinea, according to a Monday Australian bourse filing.

The agreements include a commitment of up to $11.2 million from Pacific Unison, which is expected to fully fund the construction and commissioning of the project's magnetite-only plant.

The firm plans to begin production at the plant in the fourth quarter with an annual output target of 500,000 tonnes of magnetite.

Mayur will retain 50% of all future profits from the project, while Pacific Unison will lead the required funding, construction, and development.

Company shares rose 5% on market close.