Marengo completes $15M share placement

30 September 2007 | 05:04 Code : 15454 Geoscience events
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Marengo Mining Ltd has completed its recently announced $15 million share placement....

  Marengo Mining Ltd has completed its recently announced $15 million share placement, at an issue price of $0.36 per share.The placement was strongly supported both by existing and new Australian and international institutional and professional investors.The first tranche of the placement consisted of a brokered private placement of 15,277,777 fully paid shares with Paradigm Capital Inc of Toronto, Canada as agent. This first tranche was issued on August 15, 2007 and raised gross proceeds of $5.5 million.The second and third tranches of the placement consisted of a non-brokered placement of 26,388,890 fully paid shares, also at an issue price of $0.36 per share, raising an additional $9.5 million, to existing and new Australian and international institutional and professional investors. These subsequent tranches were issued following shareholder approval, on 5 September 2007.This placement saw two of the Marengo’s existing shareholders increase theirrespective holdings, with Sentient Global Resources Fund moving to a 21.4%position and Contango Asset Management Limited moving to 5.7%. The placement has also resulted in the introduction, for the first time, of anumber of North American institutions to Marengo’s share register.The placement represents the second major capital raising to be successfullycompleted by Marengo within 12 months, following the $12.3 million capitalraising completed in October 2006 (at $0.25 per share). The placement.increases Marengo’s available cash reserves to almost $20 million, providing astrong platform for Marengo to pursue its growth strategy to become aninternational mining company.Marengo intends to use the proceeds of the placement to fund the recentlyannounced bankable feasibility study on its 100%-owned YanderaCopper-Molybdenum Project, located in Madang Province, Papua NewGuinea, and for general working capital.Commenting on the announcement, Marengo’s Managing Director, Mr LesEmery, said: “We are very pleased with the final outcome of this shareplacement, which was increased to $15 million to accommodate the very highlevels of demand from investors. We see this as a significant vote ofconfidence in the quality and potential of the Yandera Project to underpin aworld-class mining development”.

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