Marengo raises $14.8 million for PNG copper project

Billionaire George Soros’ 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 a part of the company’s $14.8-million financing.

New York based Quantum Partners, a fund managed by Soros Fund Management, is now the second-largest shareholder behind the Sentient Group, which now holds 26.7% of Marengo shares.

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 assets increase 41% over the last year while the competition saw assets plummet. A Reuters article reported yesterday 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 totaling 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 50 million tonnes per year.

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 drills on site and plans to start drilling later this month.