TORONTO , July 31, 2014 /CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (MOZ:TSX) is pleased to announce that it has entered into an agreement with
Canaccord Genuity Corp. ("Canaccord"), pursuant to which a syndicate of
underwriters led by Canaccord (the "Underwriters") will purchase, in
any combination, flow-through common shares of the Company
("Flow-Through Shares") at a price of $0.55 per Flow-Through Share and
units of the Company ("Units") at a price of $0.50 per Unit to raise
aggregate gross proceeds of $3,000,000 (the "Underwritten Offering").
Each Unit shall consist of one common share in the Company and one half
of one common share purchase warrant of the Company exercisable for a
period of 24 months from the closing date. Each whole warrant shall be
exercisable into one common share of the Company at $0.75 per share.
In addition, the Company will grant the Underwriter an option to sell
additional units (the "Over-Allotment Units") or flow-through common
shares (the "Over-Allotment Flow-Through Shares") of the Company, in
any combination of Over-Allotment Units or Over-Allotment Flow-Through
Shares (and together with the Units and Flow-Through Shares, the
"Offered Securities"), to raise additional gross proceeds of up to
$1,000,000 (the "Over-Allotment Option" and together with the
Underwritten Offering, the "Offering").
The net proceeds raised through the Offering will be used to incur
"Canadian exploration expenses" as defined in the Income Tax Act
( Canada ) (the "Act") which will constitute "flow-through mining
expenditures" as defined in the Act as well as for the exploration and
development of the Valentine Lake Project and for general working
capital purposes.
Closing of the Offering is anticipated to occur on or about August 21,
2014 (the "Closing Date"). Closing of the Offering is subject to
receipt of regulatory approvals, including the acceptance of the
Offering by the Toronto Stock Exchange. The Offered Securities will be
subject to a four month hold period under applicable securities laws in
Canada .
This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein in the United
States . The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States or to the account
or benefit of a U.S. person absent an exemption from the registration
requirements of such Act.
About Marathon Gold Corporation
Marathon is a Toronto based gold resource development company focused on
the Valentine Lake property in central Newfoundland . Marathon's mission
is to rapidly move the Valentine Lake project towards advanced
exploration and pre-development stages. For more information visit: www.marathon-gold.com.
About the Valentine Lake Project
The Valentine Lake property, owned 100% by Marathon Gold Corporation,
hosts two well defined gold deposits with NI 43-101 compliant
resources: the Leprechaun Gold Deposit and the Victory Gold Deposit.
The Leprechaun Gold Deposit is located near the south-western end of
the Valentine Lake property, and the Victory Gold Deposit is located 13
kilometers along strike to the north-east. These gold deposits form
part of a 23 km long, highly prospective gold-bearing mineralized
corridor focused along the Valentine Lake Thrust Fault.
The Leprechaun Gold Deposit has a NI 43-101 compliant Open Pit and
Underground Resource (refer to August 1, 2013 news release). The Open
Pit Resource is Measured 3.5 million tonnes containing 247,000 oz Au,
and Indicated 6.2 million tonnes containing 412,000 oz Au, and Inferred
1.2 million tonnes at 1.82 g/t Au containing 71,000 oz Au. The
Underground Resource is Measured 108,000 tonnes containing 17,000 oz
Au, and Indicated 764,000 tonnes containing 100,000 oz Au, and Inferred
349,000 tonnes containing 69,000 oz Au. As a result of favorable
drilling results in 2013 and 2014, the Sprite Area, which is adjacent
to the Leprechaun Gold Deposit, will be a focus of continued
exploration this year. The Sprite Area adjoins the Leprechaun Gold
Deposit and recent promising drilling is located 1.5 km to the north
east of the Leprechaun Gold Deposit.
The Victory Gold Deposit (formerly Valentine East Hill ) has an Open Pit
Resource (refer to August 1, 2013 news release). The Open Pit Resource
is Indicated 761,000 tonnes containing 41,000 oz Au, and Inferred
199,000 tonnes containing 9,000 oz Au. Both deposits are open to
expansion.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon Gold
Corporation, certain information contained herein constitutes
"forward-looking statements". Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, or include words such as "expects",
"anticipates", "plans", "believes", "considers", "intends", "targets",
or negative versions thereof 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 relating
to the future and readers are cautioned that such statements may not be
appropriate for other purposes. By its nature, this information is
subject to inherent risks and uncertainties that may be general or
specific and which give rise to the possibility that expectations,
forecasts, predictions, projections or conclusions will not prove to be
accurate, that assumptions may not be correct and that objectives,
strategic goals and priorities will not be achieved. These risks and
uncertainties include but are not limited to those identified and
reported in Marathon Gold Corporation's public filings, which may be
accessed at www.sedar.com. Other than as specifically required by law, we undertake 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 unanticipated events, whether as a result of
new information, future events, results or otherwise.
SOURCE Marathon Gold Corporation