Funds to finish off Yandera DFS

MARENGO Mining aims to raise $C30 million ($A28.83 million) through an equity financing arrangement to help finalise the definitive feasibility study for its Yandera copper-molybdenum-gold project in Papua New Guinea.
Funds to finish off Yandera DFS Funds to finish off Yandera DFS Funds to finish off Yandera DFS Funds to finish off Yandera DFS Funds to finish off Yandera DFS

Marengo's equity offering, which is subject to Australian Securities Exchange and Toronto Stock Exchange approval, is led by Paradigm Capital with assistance from Casimir Capital and will raise $30 million of gross proceeds based on an effective price of 25c per ordinary share.

The net funds raised will also help advance Marengo's district exploration program at the Yandera and be used for permitting and other pre-construction expenditures relating to the project.

The DFS is on track for completion midyear while a resource update is expected in this March quarter.

The project is 95km southwest of the provincial capital of Madang and 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.

Mining approvals are expected in the September quarter of 2013, construction is tipped to start 24 months later and the project is targeting production in 2016.

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