Billionaire George Soros’s investment fund has taken a 19.9% stake in Marengo Mining (MRN-T, MRN-A), the developer of the Yandera copper project in Papua New Guinea, as part of the junior’s $14.8-million financing.
New York-based Quantum Partners, a fund managed by Soros Fund Management, is now Marengo’s second-largest shareholder behind the Sentient Group, which now holds 132.7 million shares, or 26.6%.
Marengo issued 172.5 million shares at 8.6¢. The company plans to raise an additional A$5.4 million through a placement in Australia, bringing the total share count to 498 million shares.
Soros Fund Management saw its assets increase 41% over the last year while the competition saw assets plummet. A Reuters article reported on Sept. 2 that Soros oversaw US$24 billion in assets in July — 41% higher than in July 2008. The Sentient Group manages US$1.3 billion.
Marengo is working on a feasibility study for the Yandera open-pit project with a completion goal of December 2010. The project has indicated resources totalling 314 million tonnes grading 0.48% copper equivalent and inferred resources of 352 million tonnes grading 0.43% copper equivalent. The company is looking into building a 25-million-tonne-per-year operation that could expand to double that rate.
Marengo has also discovered a new mineralized zone known as Kombruku, located less than 4 km southeast of the Yandera central porphyry. The company has two diamond-drill rigs onsite and plans to start drilling in late September.
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