The National – Thursday, December 9, 2010
COPPER miner Marengo Mining Ltd has closed its previously announced best efforts offering carried out by Paradigm Capital Inc.
The offering comprised 110 million units of the company at an effective price of C$0.25 per share, raising gross proceeds of C$55 million.
This is the second major equity raising undertaken by Marengo this year, following the C$20.16 million raising completed last August.
Once finalised, the proceeds of the raising will increase Marengo’s cash balance to approximately C$75 million, providing a very strong platform for the company to proceed with development and financing of its flagship Yandera copper-molybdenum project in PNG.
Marengo managing director Les Emery said: “This raising caps a very successful year for Marengo, during which we had raised more than C$80 million, progressed the definitive feasability study (DFS) to near-completion and completed almost 30,000m of diamond drilling at Yandera which confirmed substantial depth extensions to the known mineralisation.”
Specifically, the proceeds of the raising would be used to advance the exploration of the Yandera project, as well as for permitting and other pre-construction expenditures relating to the Yandera project and general corporate and working capital purposes.
The current DFS would provide the foundation for financing and development of a large-scale, long-life operation to begin at Yandera, with ore production anticipated to start at approximately 25 million tonnes per annum.