Marathon Announces Closing of $5M Bought Deal Offering of Flow-Through Shares
December 21 2017 - 8:32AM
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION INTHE UNITED STATES
Marathon Gold Corporation (TSX:MOZ) (OTCQX:MGDPF)
("
Marathon" or the "
Corporation")
is pleased to announce the closing of a "bought deal" private
placement of an aggregate of 4,066,000 common shares of the
Corporation that will qualify as "flow-through shares" (within the
meaning of subsection 66(15) of the Income Tax Act (Canada))
("
Flow-Through Shares") at an issue price of $1.23
per Flow-Through Share (the "
Issue Price") for
aggregate gross proceeds of $5,001,180 (the
"
Offering"), including the exercise in full of the
underwriters' option to purchase an additional 1,650,000
Flow-Through Shares at the Issue Price. The Offering was completed
by a syndicate of underwriters led by Canaccord Genuity Corp., on
behalf of a syndicate of underwriters that included Haywood
Securities Inc., RBC Capital Markets and Raymond James Ltd.
(collectively, the "
Underwriters").
The gross proceeds from the Offering will be
used by the Corporation to incur "Canadian exploration expenses"
that are "flow-through mining expenditures" (within the meaning of
subsection 66(15) of the Income Tax Act (Canada)) (the
"Qualifying Expenditures") on the Corporation's
properties in the Province of Newfoundland. The Qualifying
Expenditures will be renounced to the subscribers of Flow-Through
Shares with an effective date no later than December 31, 2017, in
the aggregate amount of not less than the total amount of the gross
proceeds raised from the Offering.
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.
“The money will be put to good use with the
15,000 meter winter drill program beginning at the Valentine Lake
Gold Camp in early January. The boggy area between the Sprite
Deposits and the Marathon Deposit is a prime target for discovering
new mineralization while the area is frozen. Step-out drilling at
the Marathon Deposit will also focus on expanding the resource. It
will be an exciting time,” said Phillip Walford, President of
Marathon.
About Marathon Gold
Corporation
Marathon is a Toronto based gold exploration
company rapidly advancing its 100% owned Valentine Lake Gold Camp
located in Newfoundland, one of the top mining jurisdictions in the
world. The Valentine Lake Gold Camp currently hosts four
near-surface, mainly pit-shell constrained, deposits with measured
and indicated resources totaling 1,847,000 oz. of gold at 1.88 g/t
and inferred resources totaling 1,012,000 oz. of gold at 1.65 g/t.
The majority of the resources occur in the Marathon and Leprechaun
deposits, which also have resources below the pit shell. Both
deposits are open to depth and on strike. Gold mineralization has
been traced down over 350 meters vertically at Leprechaun and
almost a kilometer at Marathon. The four deposits outlined to date
occur in a 30-kilometer gold trend on the property, with much of
the 24,000-hectare property having had little detailed exploration
activity to date.
The Valentine Lake Gold Camp is accessible by
year-round roads and is located in close proximity to
Newfoundland's electrical grid. Marathon maintains a 50-person
all-season camp at the property. Recent metallurgical tests have
demonstrated 93% to 98% recoveries via conventional milling and 50%
to 73% recoveries via low cost heap leaching at both the Leprechaun
and Marathon Deposits.
To find out more information on the Valentine Lake Gold Camp
please visit www.marathon-gold.com.
For more information, please contact:
Christopher
HaldaneInvestor Relations ManagerTel: 1-416-987-0714E-mail:
chaldane@marathon-gold.com |
Phillip
WalfordPresident and Chief Executive OfficerTel:
1-416-987-0711E-mail: pwalford@marathon-gold.com |
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CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
This news release contains "forward-looking
information" within the meaning of applicable Canadian securities
legislation based on expectations, estimates and projections as at
the date of this news release. Forward-looking information involves
risks, uncertainties and other factors that could cause actual
events, results, performance, prospects and opportunities to differ
materially from those expressed or implied by such forward-looking
information. Forward-looking information in this news release
includes, but is not limited to, the use of the proceeds of the
Offering; the timing and ability of the Corporation, if at all, to
obtain final approval of the Offering from the Toronto Stock
Exchange; objectives, goals or future plans; statements regarding
exploration results and exploration plans. Factors that could cause
actual results to differ materially from such forward-looking
information include, but are not limited to, capital and operating
costs varying significantly from estimates; the preliminary nature
of metallurgical test results; delays in obtaining or failures to
obtain required governmental, environmental or other project
approvals; uncertainties relating to the availability and costs of
financing needed in the future; changes in equity markets;
inflation; fluctuations in commodity prices; delays in the
development of projects; the other risks involved in the mineral
exploration and development industry; and those risks set out in
the Corporation's public documents filed on SEDAR at www.sedar.com.
Although the Corporation believes that the assumptions and factors
used in preparing the forward-looking information in this news
release are reasonable, undue reliance should not be placed on such
information, which only applies as of the date of this news
release, and no assurance can be given that such events will occur
in the disclosed time frames or at all. The Corporation disclaims
any intention or obligation to update or revise any forward-looking
information, whether as a result of new information, future events
or otherwise, other than as required by law.
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