Copper development company Marengo Mining has completed a $24.1 million capital raising.
Copper development company Marengo Mining has completed a $24.1 million capital raising.
The West Perth-based company has an international focus and in a statement said the funds will be used to provide general corporate and working capital.
Marengo offered 240 million shares at 9 cents per share.
The offering was led by Paradigm Capital, with a syndicate including Fraser Mackenzie.
The Company has applied to list the ordinary shares to be issued pursuant to the offering on the TSX.
"This is a great result and I would like to thank both the new and existing investors who have supported this capital raising, and welcome several significant new North American investment funds to our share register," said Marengo's managing director Les Emery.
"The funds raised will ensure that we can continue along the path towards development of our world-scale Yandera asset, with the scheduled completion of the DFS by the end of this year," he said.
See full company statement below:
International copper development company, Marengo Mining Limited ("Marengo" or the "Company") (TSX: MRN, ASX/POMSoX: MGO) is pleased to announce the completion of its previously announced offering of 240,000,000 units of the Company ("Units") at a price of C$0.084 (A$0.09) per Unit for gross proceeds to the Company of C$20.16 (A$21.4) million (the "Offering"). Each Unit consists of one ordinary share of the Company and a free attaching one-quarter of one ordinary share purchase warrant (each whole ordinary share purchase warrant, a "Warrant"). Each Warrant is exercisable to acquire one ordinary share of the Company at a price of C$0.116 (A$0.125) until August 11, 2013. The Offering was led by Paradigm Capital Inc., with a syndicate including Fraser Mackenzie Limited.
A number of leading North American investment funds participated in the Offering, which was also strongly supported by several of the Company's existing major shareholders.
The Company has applied to list the ordinary shares to be issued pursuant to the offering on the TSX. Listing of the ordinary shares will be conditional upon Marengo fulfilling all of the listing requirements and conditions of the TSX.
The completion of the capital raising comes at a pivotal time for Marengo, as the Company moves closer to completion of the Definitive Feasibility Study (DFS) on the 100%-owned Yandera Copper-Molybdenum Project in Papua New Guinea, which is scheduled for completion by the end of this year.
It is the second significant international capital raising to be undertaken by Marengo in the past twelve months, following the A$21.7 million raising completed in September last year in Canada and Australia, which saw George Soros' Quantum Partners LDC join the Marengo register, with a 19.9% holding.
The proceeds of this capital raising will also be used to provide general corporate and working capital.
The Yandera DFS is based on a large-scale open pit mining operation, with an initial 20 year life, processing at 25Mtpa and with capacity to be increased to a long-term rate of 50Mtpa.
Commenting on the announcement, Marengo's Managing Director, Mr Les Emery said:
"This is a great result and I would like to thank both the new and existing investors who have supported this capital raising, and welcome several significant new North American investment funds to our share register.
"In particular, I would like to thank Paradigm Capital and Fraser Mackenzie for their efforts in coordinating the raising, during what has been a volatile and at times very difficult period in global markets.
"The funds raised will ensure that we can continue along the path towards development of our world-scale Yandera asset, with the scheduled completion of the DFS by the end of this year.
"At the same time, the funds will enable us to continue the exciting deep drilling program currently underway, which has already confirmed substantial depth extensions to two of the zones of mineralisation within the Yandera Central Porphyry. Drilling is continuing and we believe that this program will demonstrate further substantial upside to the Yandera Project in the coming months."