Marengo
Mining Limited (ASX: MGO)
MARENGO MINING LIMITED FILES FINAL PROSPECTUS
April 3, 2008 - Perth, Western Australia:
Marengo Mining Limited (“Marengo” or the “Company”)
(ASX: MGO) is
pleased to announce that it has filed and received a receipt for its final
prospectus in each of the provinces of Canada, except Qu�bec, Newfoundland and
Labrador and Prince Edward Island, to issue up to 44,736,843 ordinary shares at
a price of C$0.19 per ordinary share (being A$0.204 per ordinary share based on
the Bank of Canada noon spot exchange rate on April 2, 2008) for gross proceeds
of up to C$8,500,000 (A$9,144,300).
In connection with the offering, the agents have been granted an option to
purchase up to an additional 6,710,527 ordinary shares of the Company for a
period of up to 30 days from the closing of the offering in the event the
offering is fully subscribed. If the option is exercised in full, gross
proceeds of the offering will be up to C$9,775,000 (A$10,515,945).
Marengo intends to use the net proceeds of the
offering, together with its current cash reserves of approximately A$21.1
million, for completion of its definitive feasibility study on developing a
mine and associated processing plant for the Company’s Yandera
Copper-Molybdenum Project in Papua New Guinea and the balance of any proceeds
for exploration at the Yandera Project and working capital.
This offering is scheduled to close on or about
April 15, 2008.
Paradigm Capital Inc. is acting as lead agent
in connection with the offering together with a syndicate that includes Fraser
Mackenzie Limited and Jennings Capital Inc.
The Toronto Stock Exchange (the “TSX”)
has conditionally approved the listing of Marengo’s ordinary shares,
including the ordinary shares to be issued pursuant to the offering, on the
TSX. Listing of the ordinary shares is conditional upon Marengo
fulfilling all of the listing requirements and conditions of the TSX on or
before May 26, 2008.
Additional information relating to Marengo is
available on the Company’s website at: www.marengomining.com
and under the Company’s SEDAR profile at www.sedar.com.
For further information please contact:
Les Emery
Managing Director
Marengo Mining Limited
Telephone: +61 8 9429 0000
Email:
marengo@marengomining.com
This news release
does not constitute an offer to sell or the solicitation of an offer to buy any
ordinary shares within the United
States. The ordinary shares have not
been offered and will not be registered under the United States Securities Act of
1933, as amended (the “1933 Act”), or any state securities
laws. Accordingly, the ordinary shares may not be offered or sold in the United States or to U.S. persons (as such terms are
defined in Regulation S under the 1933 Act) unless registered under the 1933
Act and applicable state securities laws or an exemption from such registration
is granted.
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