Petromin, a resource and investment company appointed to take up the state's interest in the project, has already appointed BNP Paribas to advise on the financing options available to fund its pro-rata participation.

Marengo is the sole owner of Yandera and is in the process of completing a definitive feasibility study in conjunction with China Nonferrous Industry's Foreign Engineering and Construction Co (NFC) and Arccon.

Last year Marengo struck a non-binding deal with NFC over possible financing, construction and offtake aspects of the project.

As part of the memorandum of understanding, NFC will design the processing plant in China and its Australian engineering partner Arccon will provide support services.

Importantly, the co-operation agreement with Petromin also establishes the process by which a mining equity agreement will be developed by the parties to enable the PNG group to acquire its 30% stake, once the DFS and mining development contract has been finalised and a final investment decision made.

The agreement also provides a framework for Marengo and Petromin to work together to facilitate the development of Yandera through the formation of three committees - steering, technical and financial.

Marengo has appointed Standard Bank to advise on the securing of Chinese bank finance.

The project, 95 kilometres southwest of Madang, is initially expected to produce 100,000 tonnes of contained copper plus 15,000t of contained molybdenum a year over a 20-year life, but there is scope for considerable expansion.