Marathon Gold Corporation (TSX: MOZ) is pleased to announce that it has closed its previously announced C$50 million private placement financing. The financing is to support the continued advancement of the Company’s exploration and development activities at the Valentine Gold Project, located in central Newfoundland, as well as for general corporate purposes.
Pursuant to the private placement financing, the Company issued 14,373,101 common shares at C$2.45 per common share and 4,888,629 flow-through common shares at C$3.10 per flow-through common share for total gross proceeds of C$50,368,847. The offering was subscribed to by, among others, a single institutional investor, Mr. Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates. The Investor is a large institutional fund focussed on the resource sector. Certain members of Marathon’s board of directors and management team subscribed for an aggregate of 87,387 common shares and 49,919 flow-through common shares.
The proceeds received by the Company from the sale of the flow-through common shares will be used to incur resource exploration expenses related to the Project, which will constitute “Canadian exploration expenses” as defined in Subsection 66.1(6) of the Income Tax Act (Canada). The CEE will be renounced to the subscribers of the flow-through common shares with an effective date of no later than December 31, 2021 in an amount equal to the aggregate purchase price for the flow-through common shares.
Marathon is a Toronto based gold company advancing its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, one of the top mining jurisdictions in the world. The Project comprises a series of five mineralized deposits along a 20-kilometre system. An April 2021 Feasibility Study outlined an open pit mining and conventional milling operation over a thirteen-year mine life with a 31.5% after-tax rate of return. The Project has estimated Proven Mineral Reserves of 1.40 Moz (29.68 Mt at 1.46 g/t) and Probable Mineral Reserves of 0.65 Moz (17.38 Mt at 1.17 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 1.92 Moz (32.59 Mt at 1.83 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.22 Moz (24.07 Mt at 1.57 g/t). Additional Inferred Mineral Resources are 1.64 Moz (29.59 Mt at 1.72 g/t Au). Please see Marathon’s Annual Information Form for the year ended December 31, 2020 and other filings made with Canadian securities regulatory authorities and available at www.sedar.com for further details and assumptions relating to Marathon and the Valentine Gold Project.
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