Should get pllenty of media tonight. Can see it gapping up tomorow.
Marengo in broad deal with Chinese firm 18/10/2010 4:27:13 PM Marengo Mining Ltd says a Chinese firm will secure financing for its flagship project in Papua New Guinea, which could become one of the world's largest copper mines.
Marengo on Monday inked a non-binding memorandum of understanding (MOU) with China Nonferrous Metal Industry's Foreign Engineering and Construction Co. Ltd (NFC) for financing, construction and development of the Yandera project in PNG's Madang Province.
Marengo said NFC may also take a stake in the Perth-based company and the project, which also contains molybdenum and gold.
Marengo said in a statement that Yandera would be a large-scale, long-life operation, with production anticipated to start at about 25 million tonnes per annum (Mtpa), eventually ramping-up to 50Mtpa.
Beijing-based NFC may also buy concentrate from the project, which was expected to commence exports in the 2013/14 financial year, Marengo said.
"It is important to note that the MOU also contemplates NFC facilitating project finance and concentrate off-take for the project, together with potentially investing either in Marengo or the project, or both," Marengo managing director Les Emery said.
NFC president Wang Hongqian said in the statement that Yandera would be one of the world's largest new copper mines.
Marengo expects to complete a definitive feasibility study for the project by the end of this year, secure project financing by November 2011 and start project construction in the first half of 2012.
The other party to the MOU is Perth-based mining engineering group, Arccon WA Pty Ltd, which introduced Marengo to NFC.
MGO Price at posting:
24.5¢ Sentiment: Buy Disclosure: Held
