African bank to advise Marengo
International copper development company Marengo
Mining Limited has announced that the Standard Bank,
a leading African Banking Group will act as
financial adviser for the development of Marengo's
100 per cent owned rich copper-molybdenum-gold
project in the Yandera district of Madang Province.
Standard Bank's mandate is to advise Marengo on a
comprehensive funding solution for the development
of the Yandera project through to completion of
construction.
This includes working closely with Marengo and China
Non Ferrous Metal Industry's Foreign Engineering
Construction Co Ltd (NFC) with whom Marengo signed a
Memorandum of Understanding (MOU) in October 2010
for financing, construction and development of the
Yandera Project.
Under the MOU, NFC will facilitate at least 70
per/cent of the necessary financing project
development cost of the Yandera Project through
Chinese Banks.
Marengo's managing director Les Emery said Standard
Bank was selected based on its significant
experience in financing mining projects globally as
well as its specific expertise raising finance from
Chinese sources.
"After considering a number of excellent
submissions, the Board of Marengo determined that
the Standard Bank is best positioned to provide the
company with requisite knowledge to obtain funding
by Chinese-based banks for the development of the
Yandera project," he said.
Standard Bank's chief executive in Asia Andrew King
said they were delighted to be chosen as financial
adviser to Marengo. Mr King described the Yandera
project as important.
"This role will capitalise on both our global mining
expertise as well as our depth experience, linking
Chinese contractors, sponsors and banks to projects
in emerging markets," he said.
He said Standard Bank has successfully raised over
US$5 billion in Chinese financing over the last two
years.
The Yandera project is 85km northwest of Madang town
and 20 kilometres from the multi billion Ramu Nickel
Cobalt project. Feasibility studies show that the project has huge
potential of producing high grade gold and copper
molybdenum. Two Papua New Guineans former politicians are
members of the Marengo Board. They are former Prime
Minister Sir Rabbie Namaliu and former Mining
Minister Sam Akoitai.