THE Marengo Mining Co can now accelerate exploration and development of its solely-owned Yandera copper-molybdenum-gold project in Madang province.
This comes after the company completed A$16.3 million (K37.6 million) capital raising with backing from some leading global investment funds.
The capital raising drive was to fast track exploration and development at Yandera.
In a report to the market, Marengo said the previously announced raising, comprised an offering of 172.5 million shares at C$0.086 (K0.22) per share, and was underpinned by a group of leading international investment funds and Marengo’s largest shareholder, The Sentient Group, together with other existing institutional and retail investors.
Following allotment of the new shares, The Sentient Group would increase its stake in Marengo to 26.7%.
Toronto-based Paradigm Capital Inc acted as lead agent for the offering, together with Canaccord Capital Corp.
The Sentient Group managed over US$1.3 billion (K3.5 billion) in the development of quality metal, mineral and energy assets across the globe through its closed-end private equity Sentient Global Resources Funds.
Marengo’s managing director Les Emery said: “I thank both the new and existing investors who have supported this capital raising and welcome the international investment funds to our share register.”
“We also appreciate the ongoing support of The Sentient Group for their ongoing support of Marengo and our development strategy in the global copper industry, both Paradigm Capital, Canaccord Capital and New Holland Capital for their outstanding efforts in coordinating this pivotal global capital raising for Marengo.
Marengo, expected to complete a A$5.4 million (K12.5mil) share placement in Australia to existing and new investors, comprising 57.5 million shares at A$0.095 (K0.22) per share.
This would increase the combined capital raising to A$21.7 million (K50.0 million).