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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.