Marengo to raise C$55mil to fund Yandera project

Business, Main Stories

The National – Thursday, December 2, 2010

MARENGO is raising C$55 million from the sale of its shares to Paradigm Capital to fund the Yandera gold project.
Managing director Les Emery said each of the 110 million units transferred to Paradigm would consist of one ordinary Marengo share and one subscription receipt.
He also said each subscription receipt  will automatically convert to one ordinary share of the company after shareholders’ approval.
The effective price per ordinary share of the company offered is C$0.25.
Part of the proceeds will fund the company’s exploration programme in Yandera and other company expenditures.
The sale of Marengo shares took place after the company and Paradigm signed a deal on the shareholding transfer.
The offering will close on Tuesday and is subject to the approval of the ASX, the Toronto Stock Exchange and applicable securities regulatory authorities.