Sentient supports Papua New Guinea mining project

The company, which is listed in Australia and Canada, said in a regulatory filing that the loan had been agreed with Sentient Global Resources Fund IV, a $1.3 billion vehicle that reached a final close in May 2012. The loan has a coupon of 9% per annum and matures at the end of this year.

Marengo committed to the Yandera Copper Project in PNG in April 2005. Sentient invested the following year and held a 22% stake in the company as of February 2013. Potential development partners for the Yandera project include China Nonferrous Metal Industry and Kumul Mining Holding, which was set up by the PNG government to hold mining and mineral exploration assets.

Measured resources comprise 2.35 million pounds of contained copper, 101 million pounds of contained molybdenum and 847,000 troy ounces of contained gold. Marengo claims it is one of the largest undeveloped copper projects in Asia Pacific.

The estimated capital expenditure requirement is $1.7-1.85 billion. A letter of intent has been received from a Chinese bank to finance 70% of the project development costs. The target production start-up date is 2016.

Sentient has more than $2.7 billion in metal, mineral and energy assets under development across the globe.

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• Expansion
• Australasia
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