By Laura Lutz
Des Moines, Oct. 24 - Marengo Mining Ltd. announced a A$12.5 million private placement of shares.
The company will sell 50 million shares at A$0.25 each to institutional and professional investors.
The offering will be conducted in two tranches. The first tranche, of 10 million shares, will be conducted under the company's capacity to place up to 15% of its existing share capital. The remaining 40 million shares will be issued upon shareholder approval.
Sentient has agreed to subscribe for A$6.3 million. After settlement, Sentient Global Resources Fund II will be Marengo's largest shareholder with a stake of 19.7%.
Current shareholders, including Sempra Metals & Concentrate Corp., have also agreed to participate in the placement.
Proceeds will be used for the company's 100%-owned Yandera copper-molybdenum project in Papua New Guinea, for other drilling and for working capital.
Following completion of the placement, Marengo will have 128 million shares outstanding.
Marengo is a mining company based in West Perth, Western Australia.
| Issuer: | Marengo Mining Ltd.
|
| Issue: | Shares
|
| Amount: | A$12.5 million
|
| Shares: | 50 million
|
| Price: | A$0.25
|
| Warrants: | No
|
| Investor: | Sentient Global Resources Fund II (for A$6.3 million), Sempra Metals & Concentrate Corp.
|
| Pricing date: | Oct. 24
|
| Stock symbol: | Australia: MGO
|
| Stock price: | A$0.265 at close Oct. 24
|
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