Marengo Mining shares are expected to lift at the open[ing] after the company [entered] into a Memorandum of Understanding with the Madang Development Corporation (MDC) of Papua New Guinea.
The agreement is in relation to a multi-user power supply solution in the Madang Province.
The negotiations provide for Marengo to become an offtake partner, significant for Marengo as electricity supply to its Yandera copper-gold porphyry project in Madang has been an ongoing concern.
The MDC was established in 1977 and is the business arm of the Madang Provincial Government, created to develop and operate commercial ventures.
The MDC is currently in discussions with international foreign investment groups, interested in power generation and supply within the Madang Province.
Under the terms of the non-binding MoU, Marengo and the MDC have agreed to cooperate in advancing these discussions.
Yandera hosts a measured resource of 248 million tonnes at 0.43% copper, an indicated resource of 114 million tonnes at 0.42% copper and an inferred resource of 218 million tonnes at 0.37% Cu, based on a 0.25% copper cut-off.
The gold resource at Yandera comprises a measured and indicated 199 million tonnes at 0.17 grams per tonne gold for 1.1 million troy ounces, and also contains a 532 million tonne measured and indicated molybdenum resource at 0.01% for 140 million pounds molybdenum metal.