Tag Archives: Yandera

Mayur surges on with nation-build [sic] agenda

Mayur managing director Paul Mulder with Gulf Provincial Governor Chris Haiveta signing the agreement on December 7

PNG Industry News | 2 February 2018 

MAYUR Resources’ ‘PNG nation-building agenda’ featured strongly in the company’s quarterly report for December 2017, which was released yesterday.

Highlights of the quarter included a 22-hole diamond drilling campaign completed at its Port Moresby limestone project and the subsequent announcement of a 382 million tonne resource there.

The company said that good progress was made on Mayur’s nation-building agenda with the memorandum of understanding signed with the government of Gulf province and another MOU with Kumul Petroleum.

“Gulf Province is situated adjacent to Central Province and is home to extensive mineral and energy resources. Mayur has extensive mineral exploration interests in Gulf Province and intends to leverage the proximity of plentiful, cheap and accessible domestic energy to industrial mineral resources to deliver various development opportunities for the region,” the company said.

The Kumul MOU centred on the sourcing and supply of gas for its proposed vertically integrated lime and cement business at Caution Bay, 25km north of Port Moresby and adjacent to the PNG LNG plant.

Mayur’s maiden diamond drilling campaign began at the Basilaki copper gold project in Milne Bay Province.

Mayur said it was continuing to work with Era Resources towards the development of a power plant to supply Era’s Yandera copper-moly-gold project in Madang Province.

“The company has supplied technical and commercial inputs for the supply of up to 200MW for the Yandera pre-feasibility study and expects to hold further discussions with Era pending the completion of this PFS and advancement to DFS stage.”

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No decision on future of Yandera mine until at least 2019

Yandera copper project in PNG ready to start, CEO tells industry

CANADIAN-based mining company Eda Resource, the developer of the Yandera copper project in Madang, is ready to get things off the ground as it has an efficient capital structure.

President and chief executive officer of Marengo Mining, Pieter Britz, made this known at the Mining and Petroleum conference in Port Moresby this week.

He said the company continued to investigate other base metal opportunities.

Britz said the company had an experienced board and management with good funding supported by “cornerstone investors”.

“As part of the evolution of the feasibility work that have been done throughout 2011, 2012 and 2013, we have an investor agreement with the Government,” he said.

“We have a strong working relationship with the landowners, the villagers, the tribes on the areas impacted by the Yandera project and we are already underway with our revised scoping studies. Blitz said the Yandera project had the potential to be developed.

He said the project was looking forward to making it a reality by working on the feasibility programme that would lead to a decision on the commercialisation of the project.

“We hope to have by the end of 2018 a definitive feasibility study completed and ready to make a decision on going forward in early 2019.”

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Sentient Group to pump $14 million into Marengo

Funds to be used in part for drilling and exploration work at Yandera

Sentient, a private equity investment firm based in the Cayman Islands, set to own up to 95% of Marengo shares

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Marengo Announces Proposed Financing with Its Major Shareholder

Junior Mining Network

Marengo Mining Limited is pleased to announce it has entered into an agreement (the “Letter Agreement”) with its major shareholder, Sentient Executive GP IV, Limited, acting as the general partner of Sentient GP IV, L.P., itself acting as the general partner of Sentient Global Resources Fund IV, L.P. (collectively, “Sentient”) in connection with the proposed issuance of US$14,000,000 principal amount of convertible unsecured debentures (the “Debentures”). In addition to the Company, its wholly-owned subsidiaries, Yandera Mining Company Limited and Marengo Mining (PNG) Limited (collectively, the “PNG Subsidiaries”) have executed the Letter Agreement as guarantors of the Company’s obligations under the Debentures. Sentient intends to subscribe for up to US$14 million in Debentures to be issued in two tranches, with the first tranche of US$7 million (the “First Tranche”) to be completed following the approval of the Company’s shareholders at the annual general and special meeting to be held on November 13, 2015, and the second tranche of US$7 million (the “Second Tranche”) to be completed five months after shareholder approval is obtained. These transactions are also subject to approval by the Toronto Stock Exchange (“TSX”).

Subject to obtaining the necessary shareholder approval, Marengo will be completing a share consolidation whereby for every 100 Marengo common shares, one post-consolidation Marengo common share will exist (the “Consolidation”).

The Debentures will mature on December 31, 2017, (the “Maturity Date”); the Debentures will not bear interest. Each US$1,000 principal amount of Debentures will be convertible into common shares of the Company (“Common Shares”) at a conversion price of C$0.45 per Common Share (the “Conversion Price”) on a post-Consolidation basis, rounded up to the nearest Common Share. Each Debenture will be convertible, in whole or in part, at the option of Sentient and at any time, into Common Shares, intended to be freely tradable on the TSX, at the Conversion Price, for each US$1,000 principal amount of Debentures, subject to adjustment in certain circumstances as described below.

The conversion price for existing outstanding debentures of the Company held by Sentient pursuant to the terms of prior debenture financings between the Company and Sentient completed in 2014 (the “Prior Financings”), will be adjusted to CDN$0.0045 per common share or CDI upon receiving the necessary shareholder approval, and further adjusted on the Consolidation being effective to CDN$0.45 per common share or CDI.

Sentient and its related entities currently hold approximately 22% of the issued and outstanding common shares of the Company and would hold approximately 95% of the common shares of the Company, assuming the conversion of all the Debentures issued in connection with the Transaction and the conversion by Sentient of all debentures issued and issuable pursuant to the Prior Financings.

The use of proceeds will primarily be for drilling and exploration work at the Yandera Project and the company’s operations in PNG, exploration work at the La Cobota Project in Mexico, working capital and general corporate purposes.

“This financing allows Marengo to continue the budgeted work programs for the Company’s Yandera and La Cobota Projects, and potentially pursue other base metal opportunities globally,” commented Pieter Britz, President and CEO.

Marengo recently appointed André Wessels B.Eng, MBA, GAICD, MAusIMM, as VP Projects, responsible for commencing the work necessary to initiate the feasibility study for the Yandera Project. Mr. Wessels has more than 23 years experience in mining and related fields, steel, financial services and technology industries.

The Company has also appointed Jon Powell as VP PNG Operations to oversee all project related activities in PNG. Mr. Powell is an accomplished manager with over 25 years of international experience in the geophysical/mining exploration sector and has extensive background in global personnel management, logistics and operations.

The Company has also appointed Dr. Nathan Chutas as its Exploration Manager for the Yandera Project. Dr. Chutas has over 15 years of experience in mining and exploration, having worked on a variety of metallic resource projects in the US, Alaska, Mexico, South Africa and PNG.

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Marengo Mining to be suspended from stock exchange

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.

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Government blindly pursuing a failed model of development

Even the United Nations has warned more mining activity in PNG will NOT improve the lives of ordinary people – but Byron Chan and the O’Neill government don’t care. Instead they are rushing ahead with five new major mines. So who will take the profits? A small elite of politicians, lawyers and bureaucrats in PNG and the global mining companies – and unfortunately they are the ones who seem to be running the whole show…

More projects ahead

Gorethy Kenneth | Post Courier

PAPUA New Guinea expects to see about five mining development projects with a combined capital investment expected to exceed $US 10 billion or over K25 billion within the next decade.

The country’s 22-year old mining legislation and its policies will be revised so it can accommodate those projects, Mining Minister Byron Chan has announced.

Speaking in Sydney at the Mining and Petroleum Conference, Mr Chan also said the most significant initiative of the Government and the Mining Ministry is the development and implementation of several key mining policies and the subsequent revision of the current mining legislation.

He said PNG currently has 12 mining operations approved under special mining lease or mining lease tenements which have advanced to production or are at the development stages.

Within the next decade alone, we expect to witness the development of the following projects: Frieda copper, Wafi/Golpu copper, Yandera copper molybdenium, Mt Kare gold and a host of other alluvial mining projects

“These may include known mineral sands, nickel, coal and gold, silver and copper deposits. “I can report that progress is being made on the finalisation of the policy development, with the revisions of the mining act and regulations to follow.

“Working groups, comprising state and industry representatives, are now refining the policy settings and moving towards settlement of key issues and final drafting,” Mr Chan said.

“The sustainable mining policy is completed. “The geothermal policy, subject to the reservations already expressed, is also completed.

“It remains this Governments’ intention, to present the remaining policies for cabinet approval, and this legislation, to parliament mid next year.

“The Prime Minister has already given his assurance to industry and potential investors in the mining sector of PNG that policy settings will be progressive, based on best practice and allow compromise between competing interests,” he told the conference.

“They will build upon the template of the success of the current legislation, by providing the right mix of incentives and practicality to ensure a balanced regulatory regime to underpin the next generation of mineral investment in PNG,” he said.

“Finally, the most significant initiative of Government is the development and implementation of several key mining policies and subsequent revision of current mining legislation,” he said.

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Marengo to raise $7.5 million for Yandera from new majority shareholder

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$7.5M ISSUE TO START PNG DRILLING RUSH

Mining Business Media

Marengo plans an immediate start to drilling at its Yandera copper-moly-gold project in PNG in December, when it completes the $US7.5M debenture note issue to new majority shareholder Sentient Executive GP-IV.

Contractors are immediately available and a rig is mobilised onsite pending shareholder and TSX-ASX approvals. The deal will lift Sentient’s shareholding from 22% to as much as 88%.

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Proposed Yandera mine going nowhere fast

Despite Marengo’s upbeat statements the proposed Yandera mine is clearly going nowhere… 

CEO: Yandera exploration progressing well

Post Courier 

MARENGO Mining Limited, the developer of the Yandera Mining project said that the company remained focused and on target for its economic copper resources for its Yandera deposits.

In a quarterly reported released last week, the company said that the new management team recognises that new and better resources are required to elevate the Yandera deposit to one that is economically robust. “In order to obtain that objective, the Company has decided to implement the following stages over the next three years: in stage one, the company is focusing its efforts on understanding new ideas and pursuing potential new discoveries through training, comprehensive data and field reviews, mapping and sampling of new areas, and potentially exploratory drilling.

In stage two, the company plans to follow this with a larger scale mapping and sampling program to continue to define new drill targets.

Chief executive officer Peiter Britz in the report stated, “the new targets will be prioritised and drilled after completing drilling and field studies while stage three is intended to be used for proving up new resources and completing an updated Resource model and potentially finalising an updated feasibility study.”

Mr Britz also said, “in order for the management team to increase confidence in our geologic understanding, we have implemented an intensive training course for the geologic and environmental staff. This initial program is now complete and included staff members visiting various North American explorations and mining projects and undergoing an intensive training program. Benefits derived from this program are already being realised in the generation and capture of new ideas throughout the project. A broader training program is being developed and will begin implementation in the New Year,” the CEO added.

On the corporate and financial report, Mr Britz sais there has been a Shareholder Approval of US$10 million (K25.1 million) financing by its Major Shareholder together with its wholly owned subsidiaries, Marengo Mining (PNG) Limited and Yandera Mining Company Limited. The companies signed a financing agreement (Debenture Agreement) with its major shareholder, Sentient Executive GP IV, Limited for the General Partner of Sentient Global Resources Fund IV, L.P. (collectively, Sentient).

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Yandera future looks increasingly unlikely

Miner positive on prospect

The National aka The Loggers Times 

EXPLORER Marengo Mining remains positive about the mineral potential at the Yandera copper project in Madang despite questions over the economic viability of the development.

Chief executive officer Pieter Britz said global resource markets, the falling copper price, a decrease in exploration and development and escalating capital and operating costs had brought into question the economic viability of the development of Yandera’s 2012 resource.

“During this quarter, the new management team completed a comprehensive review of all aspects of the feasibility work, and concluded that although progress had been made, and further optimisation of the resource and development options had been considered, the project would not currently yield the economics desired and therefore the feasibility work would not be completed at this time,” Britz said in the company’s June quarterly.

“However, during inspection of the 2012 resource, and further drilling, mapping and survey programmes completed since, management remains positive about the mineral potential at Yandera,” he added.

“As part of the comprehensive review of the known resource, it is emerging that a new structural model that controls mineralisation is becoming evident.

This new understanding is being used to predict where new discoveries and an increase of grade are likely to occur.

“This new model has been used to great effect recently.”

 

Miner makes Madang its base 

Freddy Mou | PNG Loop

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Madang is now Marengo’s headquarters after the company closed its offices in Port Moresby and Perth in Australia.

Substantial work had been undertaken as part of the feasibility study at Yandera of resource definition and modelling, pit shell design, mine planning, metallurgical processing, capital and operating cost estimates, and certain logistics.

CEO Pieter Britz said with the new management team in place, the company would implement a three-year plan, with the initial focus on training, comprehensive data and field reviews, mapping and sampling of new areas, and potentially exploratory drilling.

“Extensive mapping and sampling in this new area has revealed potential wide zones of mineralisation and alteration that exhibit abundant bornite and chalcopyrite within both potassic and phyllic alteration zones.

“These new discoveries have given management confidence that new and potentially higher-grade mineralisation can be found and brought into additional resources through the implementation of an intensive geologic work program.”

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Marengo takes a step back to re-evaluate Yandera future

Marengo sets forward plan

Rosalyn Albaniel-Evara | Post Courier

marengoMARENGO Mining Limited is in the process of developing a three year plan going forward for the Yandera Mine which also includes a the training of its local staff.

High also on this plan is a geological audit which will be undertaken on its existing resource base and a program to identify new areas with high grade deposits.

This was made known by the company’s Chief Executive Officer Pieter Britz and Chief Operating Officer John Mears while in country last week.

Mr Mears, who is a geologist by profession, said as part of the plan that there to be plans in place by the company to provide opportunities for the local geologist and the geology team abroad.

He said this would include travels to his home country in the United States of America to visit operating mines as exploration projects.

He said the purpose being to open their eyes and their thoughts on how they can then in turn take the Yandera project forward.

He said plans also to be in place to develop and equip not only the geologists but other professionals with working tools including new software to aid in the project’s progression.

Mr Mears said this year would be a busy year that the company would be looking at taking a step back and in doing so going back to the basics- mapping and sampling.

He said this would require a lot of hard work but that the company to be prepared and excited.

He said he confident that with the support of the Founding President and CEO Les Emery and the strong support of the company’s board of directors, its major shareholder-Sentient Group that the plans to be achievable.

Mr Britz said the project to be one with a lot of potential and this to be recognized by the company’s major shareholder-Sentient who been very supportive of the project.

He said in recognition of the potential this project has that it had since dedicated two of its senior executives-himself and Mr Mears to get involved with the project.

The Sentient Group has also in recent weeks as a show of its optimism and commitment also signed off on a loan of US$3 million, which the company had announced in a recent statement to the market would be used to finance its working capital requirements and for general corporate purposes.

He said while it would be the desire of all to see the company press the button on the development, that this would be difficult at this stage.

This he said to be due to the global financial condition, lack of market support and commodity cycle. He said in this regard the company would be working smart adding the focus now would be for it to go back to basics that being conducting a resource definition, ensuring that is robust and economical.

He said all this to be entailed in the three year plan the company would be setting in place for itself.

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Govt has its head in the sand over large-scale mining

Large-scale mining has not delivered a better quality of life for ordinary people in PNG – Misima, Ok Tedi, Porgera, Lihir, Panguna… where are the benefits?

So why is the government pushing more environmentally and socially destructive large-scale mining rather than pursuing other development options or at least pausing and doing a major study on what has gone wrong and what needs to be fixed BEFORE we open more mines? 

PNG resources boom in coming years

The National

Four large scale productions are primed for commercial production in the next 10 years, Papua New Guinea Mineral Resources Authority managing director Philip Samar said.

He said the country was focused on diversifying its minerals base with the Frieda River, Yandera (Madang), Mt Kare and Wafi Golpu projects between 2015- 2025.

Samar said: “PNG started with mining as its backbone, first copper mine out of Panguna.

“Of course we heralded the PNG LNG gas project that will now take off from here.

“On average PNG produces something like 60 tonnes of gold, similar amount of silver and just under 200 tonnes of copper. We have one copper mine currently producing and that is Ok Tedi Mining Ltd (OTML.

“Looking over the horizon over the next 10 years to 2025, there’s about four to five large world-scale operations to be brought on for commercial production.

“With the coming on stream of the Ramu NiCo project last two years, we’ve added nickel and cobalt so we are and have a mandate to further diversify our mineral base.

PNG has challenging operating environments; however he added that miners have received significant returns from their investments.

“There is one mine currently under application with the Mineral Resources Authority and it’s the Woodlark gold project (Milne Bay). We hope to turn this project around in the next two months.”.

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