Marathon Gold Corporation (TSX: MOZ) is pleased to announce it has completed its previously announced strategic flow-through financing to continue the Company’s successful exploration program at the Valentine Gold Project in central Newfoundland.
The non-brokered private placement offering consisted of 3,037,417 flow-through common shares priced at C$2.85 per flow-through common share for total proceeds of C$8,656,638.
Marathon is pleased that Pierre Lassonde increased his shareholding in the Company through this flow-through financing. Mr. Lassonde subscribed for 2,631,579 flow-through shares totalling C$7.5 million. The balance of the Offering was subscribed for by Trinity Capital Partners Corporation and members of Marathon’s Board and management team.
The proceeds received by the Company from the sale of the flow-through shares will be used to incur resource exploration expenses related to the Valentine Gold 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 shares with an effective date of no later than December 31, 2020 in an amount equal to the aggregate purchase price for the flow-through shares.
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 news 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 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 four mineralized deposits along a 20-kilometre system. An April 2020 Pre-Feasibility Study outlined an open pit mining and conventional milling operation over a twelve-year mine life with a 36% after-tax rate of return. The Project has estimated Proven Mineral Reserves of 1.3 Moz (26.3 Mt at 1.52 g/t) and Probable Mineral Reserves of 0.6 Moz (14.8 Mt at 1.23 g/t). Total Measured Mineral Resources (inclusive of the Mineral Reserves) comprise 1.9 Moz (31.7 Mt at 1.86 g/t) with Indicated Mineral Resources (inclusive of the Mineral Reserves) of 1.19 Moz (23.2 Mt at 1.60 g/t). Additional Inferred Mineral Resources are 0.96 Moz (16.77 Mt at 1.78 g/t Au). Please see the Technical Report dated April 21, 2020 for further details and assumptions relating to the Valentine Gold Project.
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We acknowledge the [financial] support of the Government of Canada.