2 March 2006ASX / MEDIA RELEASEMARENGO MINING ATTRACTS MAJOR...

2 March 2006
ASX / MEDIA RELEASE
MARENGO MINING ATTRACTS MAJOR INTERNATIONAL INVESTOR
• Global US-based commodities group Sempra Metals & Concentrates
Corp takes up strategic $1.2M placement in Marengo at 30 cents per
share.
• Sempra granted first right of refusal to negotiate an off-take agreement
for Marengo’s Yandera Copper-Molybdenum Project in PNG.
Diversified metals company, Marengo Mining Limited (ASX Code: MGO) today
announced that it had secured a new major international investor with leading global
commodities trading company, Sempra Metals & Concentrates Corp, agreeing to
take up a strategic $1.2 million placement in Marengo.
Marengo is to issue 4,000,000 shares at 30 cents to Sempra Metals, together with
4,000,000 attaching, unlisted options, with a strike price of 40 cents, expiring on 30
November 2008. This placement will be made under Marengo’s existing 15%
placement capacity, under the ASX Listing Rules.
In addition, Marengo has agreed to grant Sempra Metals a first right of refusal to
negotiate an off-take agreement for metals concentrate from Marengo’s Yandera
Copper-Molybdenum project in Papua New Guinea.
This raising of A$1.2 million will add to Marengo’s current cash balance of A$6.7
million, with no fees payable to any third party, further strengthening its share register
and providing additional funding to pursue its aggressive diamond drilling program at
Yandera during 2006.
Sempra Metals & Concentrates Corp is a part of the Sempra Metals Group, which is
a significant global investor, specialising in non-ferrous metals, precious metals and
plastics. It is owned by the US-based energy services company Sempra Energy, a
Fortune 500 company.
Marengo’s Managing Director, Mr Les Emery, said: “We are very pleased to welcome
Sempra to our register. Securing a long-term investment by such a significant global
commodities trading house represents an acknowledgement of the progress
Marengo has made since entering PNG and, more particularly, in the potential of the
Yandera Project to become a significant mining project and future supplier of base
metal concentrate on the world stage.”
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ASX/Media Release
Marengo Mining attracts major international investor (cont’d) Page 2
Marengo last week announced that it had reached agreement to acquire all of the
issued shares in its joint venture partner at Yandera, for a combination of cash and
shares, thus moving to a 100% interest in the project.
A major diamond drilling campaign will shortly commence at Yandera, focusing
principally on the existing Gremi and Omora zones of copper-molybdenum
mineralisation. This drilling program is designed to lead to the calculation of a JORC
resource for the Yandera Project later this year.
First discovered by Australian Government geologists in the 1950s, Yandera was
explored by Kennecott Exploration and BHP in the 1960s and 1970s, with over
US$20 million spent at that time on exploration (including 33,000 metres of diamond
drilling), generating a number of non-JORC resource estimates.