Marengo to shift HQ to Canada

Marengo Mining has announced it is pulling up its Perth stumps and shifting its headquarters to Canada.

Marengo announced today it would launch a scheme of arrangement, where shareholders will be offered equity in a newly created Canada-registered entity.

Marengo completed a dual listing of its shares on the Toronto Stock Exchange in 2008.

The company said a move to Canada would give it greater ability to raise debt and equity by giving it exposure to more positive market sentiment and larger and more diverse investment markets.

The proposal remains subject to Marengo shareholder and Supreme Court approval.

Marengo’s flagship asset is the Yandera copper project in Papua New Guinea.

“The Marengo board believes that in the present economic climate, the opportunity exists to bring the Yandera project into production, transforming the company from an explorer to a significant copper producer,” the company said in a statement.

“This proposed restructure will ensure that the Marengo Group is suitably positioned to manage its future capital requirements and to provide continued growth of shareholders wealth.”

At close of trade today, Marengo stocks were steady at 11 cents, with more than 1.6 million securities changing hands.