Marengo Mining Limited has positioned itself with its major Yandera project, as a company with the potential to grow into a world class metal miner.
However, according to a statement released to the market last week, there is going concern about the deficiency in the company’s working capital.
As of March 31, 2014, Marengo had a working capital deficiency of $19, 530 million (K48. 8m) as compared to $8. 7 million (K21, 727 500)
Given the company’s financial position and the ongoing exploration and evaluation expenditures on Yandera Project, Marengo’s major shareholder Sentient Executive GP IV (Sentient) has stepped in to assist Marengo with a loan of US$3 (K7.5m) as reported by fastbusiness earlier.
With the support from Sentient, directors of Marengo in a statement released at Port Moresby Stock Exchange confirmed the financial status of the company and stated the issue in working capital deficiency is ongoing.
“the date of releasing the interim consolidated financial statement, the issue is an ongoing, and as a result, the financial report for the three and nine months ended March 31, 2014 doesn’t include any adjustment relating to the recoverability and classification of the recorded asset amounts or amount and classification of liabilities that might be necessary should he company not continue as a going concern” the directors stated in the statement.
Marengo is listed at Port Moresby Stock Exchange and the Australian Stock Exchange.