Marengo Mining Limited (ASX Code: “MGO”, TSX Code: “MRN”, POMSoX Code: :MGO”) is pleased to announced that, subject to shareholder and regulatory approvals, it proposes to restructure Marengo Mining Limited (“Marengo”) to redomicile to Canada by way of a Scheme of Arrangement.
The redomicile will not result in any changes in Marego’s management, operations or strategy and its share will trade under the same symbols (ASX and POMSoX: MGO, TSX: MRN) as the Marengo shares trade at present.
This decision was made after careful consideration of the alternatives, including remaining a purely Australian company, dual listing on TSX, or listing on the Alternative Investments Market (“AIM”) in London.
Ultimately, the Company believes that access to the much deeper capital markets of North America will assist facilitation of financing for the Yandera Project.
The Marengo Board has determined that the redomicile will better position the Group to realise its strategic goals.
Potential advantages of the redomicile are:
- A greater ability to raise debt and equity;
- Improved market sentiment and profile;
- Access to a market more receptive to mining projects in PNG;
- Exposure to larger and more diverse investment markets;
- It is consistent with Marengo’s growing international shareholder base and improves the potential for further international investor interest; and
- Retention of ASX and POMSoX listings for investors based in Australia and Papua New Guinea respectively;
To effect the redomicile, a Scheme of Arrangement is proposed, under which shareholders will be offered pro-rata equity in a new Canadian incorporated company, specifically incorporated to which will ultimately be named Marengo Mining Limited (Marengo Mining).
There will be no effect on the assets and liabilities of Marengo upon completion of the restructure.
The redomicile will only proceed if the restructure is approved by Marengo shareholders and the Supreme Court of Western Australia.
Marengo is strongly focused on the Yandera Project, but has also continued to maintain its exploration activities in adjacent areas in Papua New Guinea.
The Marengo Board believes that in the present economic climate the opportunity exists to bring the Yandera Project into production, transforming the Company from an explorer into a significant copper producer.
This proposed restructure will ensure that the Marengo Group is suitability positioned to manage its future capital requirements and to provide continued growth of shareholders wealth.