Marengo Mining yesterday announced it had raised $5.4 million through a share placement, completing the second stage of its $21.7 million global capital raising program.
The company agreed to place 57.5 million shares at 0.095 cents per share to institutional and sophisticated investors.
The Australian placement was managed by New Holland Capital.
The successful raising follows a $16.3 million placement in Canada, which was underpinned by Quantum Partners and Marengo’s largest shareholder, Sentient Group, along with other North American-based investment funds.
As a result, Quantum has acquired a 19.9% stake and Sentient Group has increased its holding in to 26.65%, the company said.
The funds raised will be used to accelerate exploration and development of Marengo’s Yandera Project in Papua New Guinea.
Marengo managing director Les Emery said the company was delighted the outcome of the capital raising.
“We would like to thank existing and new investors here in Australia who have provided strong support for this share placement,” he said.
At completion of the combined capital raising, Marengo will have 498 million shares on issue with cash reserves of approximately $24 million.