Marathon Gold Corp. has arranged a 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 consists of 3,037,418 flow-through common shares priced at $2.85 per flow-through common share for total proceeds of $8,656,641.
As part of the offering, Marathon is pleased to have existing shareholder Pierre Lassonde as a strategic investor of the company. Mr. Lassonde has indicated that he intends to subscribe for such number of flow-through common shares of the offering totalling $7.5-million. The balance of the offering has been subscribed for by Trinity Capital Partners Corp., and members of Marathon’s board and management team.
Matt Manson, president and chief executive officer, commented: “As we wind down a very successful year of exploration and look ahead to 2021, we are very pleased to welcome Mr. Lassonde’s strategic investment which specifically supports our continued exploration initiatives at the Valentine gold project. We look forward to building on the momentum we have established in 2020, particularly at the newly discovered Berry zone, centrally located between the Marathon and Leprechaun deposits.”
The company intends to use the proceeds of the offering to continue exploration of its Valentine gold project.
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 (CEE) 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 Dec. 31, 2020, in an amount equal to the aggregate purchase price for the flow-through shares.
The offering is being made by way of private placement in Canada. The flow-through shares will be subject to a four-month hold period under applicable securities laws in Canada. Closing of the offering is anticipated to occur on or about Dec. 7, 2020, and is subject to receipt of regulatory approvals, including the acceptance of the offering by the Toronto Stock Exchange.
About Marathon Gold Corp.
Marathon is a Toronto-based gold company advancing its 100-per-cent-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, Prefeasibility study outlined an open-pit mining and conventional milling operation over a 12-year mine life with a 36-per-cent after-tax rate of return. The project has estimated proven mineral reserves of 1.3 million ounces (26.3 million tonnes at 1.52 grams per tonne) and probable mineral reserves of 600,000 ounces (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 960,000 ounces (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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