Further to filing a final prospectus on 3 April, Marengo Mining Ltd has today announced the completion of its C$9.8 million offering and has commenced trading on the Toronto Stock Exchange.
Further to filing its final prospectus on 3 April, Marengo Mining Ltd has today announced the completion of its C$9.8 million offering and has commenced trading on the Toronto Stock Exchange.
Headquartered in Perth, Marengo is an exploration and feasibility stage mining company focused on bringing the Yandera Copper-Molybdenum Project in Papua New Guinea into production.
Marengo was listed on the Australian Securities Exchange on November 13, 2003 and subsequently on Papua New Guinea's POMSoX on November 10, 2006.
The announcement is pasted below:
West Perth-based Marengo Mining Ltd has completed its previously announced offering, issuing a total of 51,447,369 ordinary shares at C$0.19 per share (being A$0.201 per share based on the Bank of Canada noon spot exchange rate on April 14, 2008), for gross proceeds of C$9,775,000 (A$10,378,117).
Marengo's ordinary shares began trading today on the Toronto Stock Exchange under the symbol "MRN".
Paradigm Capital Inc. acted as lead agent in connection with the offering together with a syndicate that included Fraser Mackenzie Limited and Jennings Capital Inc. (collectively, the Agents).
In connection with the offering, the Agents were granted an option to acquire up to an additional 6,710,526 ordinary shares.
This option was exercised in full and all of these shares have been issued and are included in the total number of shares of 51,447,369 referred to above.
Marengo intends to use the net proceeds of the offering, together with its current cash reserves of approximately C$19.8 million (A$21.0 million), for the completion of its definitive feasibility study (DFS) on developing a mine and associated processing plant for the Company's 100% owned Yandera Copper-Molybdenum Project in Papua New Guinea.
The DFS is being undertaken by an alliance of Australian based resource and engineering construction companies, GRD Minproc Limited, and URS Australia Pty Ltd, the Australian arm of international engineering and environmental group, URS Corporation. The DFS is scheduled to be completed in June 2009.
The balance of the proceeds from the offering will be utilised for exploration for possible extensions of the Yandera central resource and prospects surrounding the Yandera central resource (including the Gogobangu, North and South Bononi, and Queen Bee prospects), and for working capital.