The developer of the Yandera copper-gold mine project in Madang, said that its board of directors had determined that it was in the best interests of the company and shareholders for it to delist from PomSoX with reasons that included a move to access global equity markets.
The Canada-based mineral exploration company’s announcement followed its recent delisting from Australian Stock Exchange in June this year.
Marengo said the decision to delist from POMSoX included:
Then directors of the company decided to proceed with re-domicile of company from Australia to Canada in 2013 was to move company’s primary listing to TSX (Toronto Stock Exchange) to provide it with better access to global equity markets, and in particular the North American market;
removal of Marengo from Australian ASX official list occurred at close of trading on June 2 this year. Consistent with its reasons for delisting from ASX, the board considered that following its re-domicile, the company no longer required a secondary listing on POMSoX;
the board had determined that delisting was an important step in the company’s on-going efforts to continue reducing its cash burn rate;
The board considered significant compliance costs of maintaining a listing on POMSoX would be better spent on company’s exploration programmes; and,
Only a small proportion (less than 5 per cent) of Marengo’s securities were registered on Papua New Guinea security register, and the board expectedthe 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).
Subjected to POMSoX approval, Marengo expected trading to be suspended on POMSoX on or around close of trading on Oct 19 this year, and delisting to take place a week after.