Marathon Gold Announces Closure of C $ 50 Million Private Company
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TORONTO, May 27, 2021 (GLOBE NEWSWIRE) – Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to announce that it has completed its previously announced C $ 50 million private placement financing. The funding is intended to support the continued advancement of the Company’s exploration and development activities at the Valentine Gold Project, located in central Newfoundland (the “Project”), as well as for general corporate purposes. business.
As part of 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 CA $ 50,368,847. The offering was subscribed, among others, by a single institutional investor (the “Investor”), Mr. Pierre Lassonde and Trinity Capital Partners Corporation and its affiliates. The investor is a large institutional fund focused on the resource sector. Certain members of the board of directors and the management team of Marathon subscribed for a total 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 exploration expenses for the resources related to the project, which will constitute “Canadian exploration expenses” (“CEE”) within the meaning of paragraph 66.1 ( 6) of the Income Tax Act (Canada). CEE will be forfeited to subscribers of flow-through common shares with an effective date no later than December 31, 2021 for an amount equal to the aggregate purchase price of flow-through common shares.
Marathon (TSX: MOZ) is a Toronto-based gold company advancing its 100% owned Valentine gold project, located in central Newfoundland and Labrador, one of the world’s leading mining jurisdictions. The project comprises a series of five mineralized deposits along a 20 kilometer network. An April 2021 feasibility study described an open pit mining and conventional processing operation over a thirteen year lifespan with an after-tax rate of return of 31.5%. The project estimated proven mineral reserves of 1.40 Moz (29.68 Mt @ 1.46 g / t) and probable mineral reserves of 0.65 Moz (17.38 Mt @ 1.17 g / t). Total Measured Mineral Resources (including Mineral Reserves) includes 1.92 Moz (32.59 Mt @ 1.83 g / t) with Indicated Mineral Resources (including Mineral Reserves) of 1.22 Moz (24 , 07 Mt at 1.57 g / t). The 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 documents filed with Canadian securities regulatory authorities and available at www.sedar.com for more details and assumptions regarding Marathon and the gold project. Valentine.
For more information please contact:
President and CEO
Phone: 416 987-0711
Chief Financial Officer and Business Development
Phone: 416 855-8200
Senior Partner, Investor Relations
Phone: 416 855-8202
To learn more about Marathon Gold Corporation and the Valentine Gold Project, please visit www.marathon-gold.com.
Caution regarding forward-looking information
Certain information contained in this press release constitutes forward-looking information within the meaning of Canadian securities laws (“forward-looking statements”). All statements in this press release, other than statements of historical fact, that deal with events, results, results or developments that Marathon expects to occur are forward-looking statements. Forward-looking statements include statements that are predictive in nature, depend on or refer to future events or conditions, or include words such as “expects”, “anticipates”, “anticipates”, “believes”, “Considers”, “considers”, “Intends”, “target”, or negative versions of these and other similar expressions, or future or conditional verbs such as “may”, “will”, “Should”, “would” and “could”. We provide forward-looking statements for the purpose of conveying information about our current expectations and plans for the future, and readers are cautioned that such statements may not be appropriate for other purposes. More particularly and without restriction, this press release contains forward-looking statements and information on Marathon’s intention to carry out the Offer and its timetable.
Forward-looking statements involve known and unknown risks, uncertainties and assumptions and, therefore, actual results and future events could differ materially from those expressed or implied in such statements. You are therefore cautioned not to place undue reliance on forward-looking statements. With respect to forward-looking statements regarding the interpretation of exploration results and the impact on the mineral resource estimate of the project, the company has provided such statements based on certain assumptions it deems reasonable at the time. current, including assumptions about continuity of mineralization between drill holes. A mineral resource classified as “inferred” or “indicated” involves great uncertainty as to its existence and its economic and legal feasibility. It cannot be assumed that all or part of an “indicated mineral resource” or an “inferred mineral resource” will one day be upgraded to a higher category of mineral resource. Investors are cautioned not to assume that all or any part of the mineral deposits in these categories will ever be converted into proven and probable mineral reserves.
By their nature, this information is subject to inherent risks and uncertainties which may be general or specific and which give rise to the possibility that expectations, forecasts, forecasts, projections or conclusions will not prove to be accurate, that the assumptions may not not be correct and that the objectives, strategic goals and priorities will not be achieved. Factors that could cause future results or events to differ materially from current expectations expressed or implied in the forward-looking statements include receipt of all necessary regulatory approvals, compliance with all conditions upon closing of the Offer, risks and uncertainties linked to the interpretation of the exercise. results, geology, grade and continuity of mineral deposits and conclusions of economic evaluations; uncertainty in estimating mineral resources; inaccurate geological and metallurgical assumptions (including with respect to size, grade and recoverability of mineral resources); the potential for delays or changes in plans for exploration or development projects or capital expenditures, or the completion of feasibility studies due to changes in logistical, technical or other factors; the possibility that future exploration, development, construction or mining results will not meet the Company’s expectations; risks associated with the ability of the current exploration program to identify and expand mineral resources; risks associated with possible grade variations, anticipated mine dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined; mining and development risks, including risks related to accidents, equipment failures, labor disputes (including work stoppages and strikes) or other unforeseen difficulties or business interruptions exploration and development; risks associated with the inherent uncertainty of production and cost estimates and the potential for unanticipated costs and expenses; risks associated with the prices of raw materials and electricity, fluctuations in exchange rates and variations in interest rates; uncertainty of profitability due to the cyclical nature of the mining industry; risks related to the inability to obtain adequate financing on a timely basis and on acceptable terms or to delays in obtaining government or other stakeholder approvals or in completing development or construction activities ; risks related to environmental regulation and liability, government regulation and licensing; risks related to the company’s ability to attract and retain qualified personnel; risks associated with the timing of receipt of regulatory and government approvals for continued operations and future development projects; political and regulatory risks associated with mining and exploration; the risks associated with the potential impacts of the COVID-19 pandemic on the Company and the mining industry; changes in general economic or financial market conditions; and other risks described in Marathon documents filed with Canadian securities regulators.
You can find more information on these and other risks in Marathon’s Amended and Restated Annual Information Form for the year ended December 31, 2020 and in other documents filed with available Canadian securities regulators. at www.sedar.com. Unless specifically required by law, Marathon assumes no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unforeseen events, which whether as a result of new information, future events or results otherwise.