Marathon Gold Corporation (TSX:MOZ) (OTCQX: MGDPF) is pleased to announce the closing of a “bought deal” private placement of an aggregate of (i) 11,570,000 units consisting of one common share of the Corporation and one-half of one common share purchase warrant at a price of C$1.32 per Unit and (ii) 5,420,000 flow-through units consisting of one common share of the Corporation and one-half of one common share purchase warrant issued as “flow-through shares” for purposes of the Income Tax Act (Canada)) at a price of $1.85 per Flow-Through Unit for aggregate gross proceeds of $25,299,400, which includes the exercise in full of the underwriters’ option to sell 2,710,000 Flow-Through Units. The Offering was completed by a syndicate of underwriters co-led by Canaccord Genuity Corp. and Sprott Capital Partners LP by its general partner, Sprott Capital Partners GP Inc., and including RBC Dominion Securities Inc., Haywood Securities Inc. and National Bank Financial Inc.
The Corporation intends to use the net proceeds of the Offering to continue exploration and development of the Valentine Gold Project and for general corporate purposes. The proceeds received by the Corporation from the sale of Flow-Through Units will be used to incur Canadian exploration expenses that qualify as “flow-through mining expenditures” (within the meaning of the Income Tax Act (Canada)) related to the Corporation’s Valentine Gold Project in Newfoundland, Canada. The Qualifying Expenditures will be renounced to the subscribers with an effective date no later than December 31, 2019, in the aggregate amount of not less than the total amount of the gross proceeds raised from the issuance of Flow-Through Units.
All securities issued under the Offering will be subject to a hold period expiring four months and one day from the date hereof. The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.
Marathon is a Toronto based gold company rapidly advancing its 100%-owned Valentine Gold Project located in central Newfoundland, one of the top mining jurisdictions in the world. The Valentine Gold Project comprises a series of mineralised deposits along a 20-kilometer system of gold bearing Quartz-Tourmaline-Pyrite veins. The project is accessible by year-round road and is in close proximity to the provincial electrical grid. To date, four gold deposits at Valentine have been delineated, including the large Leprechaun and Marathon deposits. An October 2018 Preliminary Economic Assessment showed the project to be amenable to open pit mining and conventional milling over a twelve-year mine life. Total Mineral Resources currently comprise Measured Mineral Resources of 16.6 million tonnes at a grade of 2.18 g/t containing 1,166,500 oz. of gold, Indicated Mineral Resources of 28.5 million tonnes at a grade of 1.66 g/t containing 1,524,900 oz. of gold and Inferred Mineral Resources of 26.9 million tonnes at a grade of 1.77 g/t containing 1,531,600 oz. of gold. For more information, readers are referred to the technical report prepared in accordance with the requirements of NI 43-101 dated October 30, 2018 for further details and assumptions relating to the project.
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