Marengo Mining Limited listed in Port Moresby and Australian Stock Exchange announced today that the company has completed the previously announced capital raising drive.

Marengo had previously announced the issuance of US$10,195,065 principal amount of convertible unsecured debentures (the “Debentures”) to its major shareholder, Sentient Executive GP IV, Limited for the General Partner of Sentient Global Resources Fund IV, L.P. (collectively, “Sentient”) pursuant to a loan conversion and debenture purchase agreement dated June 2, 2014, between the Company (together with its wholly-owned subsidiaries Yandera Mining Company Limited and Marengo Mining (PNG) Limited), and Sentient (the “Agreement”).

In a statement released at Port Moresby Stock Exchange, Marengo states;

“As previously announced, pursuant to the terms of the Agreement, the Company has: (i) converted the unsecured interest-bearing debt facility with Sentient, in the aggregate principal amount of US$3,000,000, dated April 29, 2014 and due on December 31, 2014, along with interest of US$55,065 thereon into 9.0% senior unsecured convertible debentures of the Company in the principal amount of US$3,055,065 (the “Loan Debentures”); and (ii) issued and sold to Sentient 9.0% senior unsecured convertible debentures of the Company in the principal amount of US$7,000,000 (the “Investment Debentures”).

“In connection with the transaction, the company also paid to Sentient an establishment fee of 2% of the amount of Investment Debentures, which fee was satisfied by the company through the issuance of US$140,000 principal amount of 9% senior unsecured convertible debentures (the “Establishment Fee Debentures”, and together with the Loan Debentures and the Investment Debentures, the “Debentures”)”

The company noted in the statement that the debentures will mature on June 30, 2016 and will bear interest from and including the date of issuance at the rate of 9% per year, payable in equal semi-annual installments on April 30 and October 30 in each year, starting October 30, 2014 until the maturity date.

“Interest payable on the debentures will be paid by the company through the issuance of additional debentures (the “Interest Debentures”) which will be issued in substantially the same terms as the debentures,” Marengo notes.

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