Marengo retreating back to Canada as low resource prices impact on its available capital
The National aka The Loggers Times
THE Marengo Mining Ltd will be suspended from trading on the Port Moresby stock exchange next Monday, according to a market report released yesterday.
The report said that “due to the pending delisting of MMC at the end of this month, the stock will be suspended on October 19, 2015 and eventual delisting on October 30, 2015.” Marengo, two months ago, announced that it had requested approval from POMSoX for its removal from the official list.
Following the company’s removal from POMSoX, Marengo securities would only be tradable on the Toronto stock exchange.
The company noted that on August 6, POMSoX advised Marengo on an in-principle basis that it would accept a formal application from the company to be removed from the official list, subject to the satisfaction of various conditions required by POMSoX.
The Marengo Mining board had considered that the significant compliance costs of maintaining a listing on POMSoX would be better spent on the company’s exploration programmes.
And only a small proportion (less than 5 per cent) of the company’s securities were registered on the PNG security register.
The board expected that the company’s security holder base in PNG would diminish even further over time, with future raisings expected to be done in the North American market. Marengo had focused its attention on the Yandera project located in Madang.
The project, which comprises granted exploration licences, covers more than 1500 square kilometres and was the subject of intensive, drill-based exploration programmes.