West Perth-based Marengo Mining Ltd has completed the first tranche of a placement, raising $5.5 million to help fund a feasibility study on its 100 per cent-owned copper-molybdenum project in Papua New Guinea.
The company will issue the second tranche of its offer to raise a further $9.5 million, subject to shareholder approval.
The full text of a company announcement is pasted below
August 16, 2007 - Marengo Mining Limited ("Marengo") is pleased to announce that it has completed the first tranche of its previously announced placement of up to 41,666,667 ordinary shares at a price of A$0.36 per share (the "Offering") for gross proceeds of approximately A$15,000,000.
Pursuant to the first tranche of the Offering, Marengo completed a brokered private placement of 15,277,777 ordinary shares at a price of A$0.36 per share for gross proceeds of approximately A$5,500,000 through its agent, Paradigm Capital Inc of Toronto, Canada.
The second tranche of the Offering is a non-brokered private placement of up to 26,388,890 ordinary shares, also at a price of A$0.36, for gross proceeds of approximately A$9,500,000 primarily to existing and new Australian, and international, institutional, and professional investors. This second tranche of the Offering will be completed upon receipt of shareholder approval at a meeting of Marengo's shareholders, scheduled for 5 September 2007.
Marengo intends to use the proceeds from the Offering to continue to fund a bankable feasibility study on Marengo's 100% owned Yandera Copper-Molybdenum Project in Madang Province, Papua New Guinea and for general working capital purposes.
