/NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES
OR FOR DISSEMINATION IN THE UNITED
STATES/
TORONTO, Dec. 12, 2017
/CNW/ - Marathon Gold Corporation (TSXV:MOZ)
("Marathon" or the
"Company") is pleased to announce that it has entered
into an agreement with a syndicate of underwriters led by Canaccord
Genuity Corp. (collectively the "Underwriters"), whereby the
Underwriters have agreed to purchase, on a "bought deal" basis,
1,650,000 flow-through common shares of the Company (the "Offering
Shares") at a price of $1.23 per
Flow-Through Share for gross proceeds of $2,029,500 (the "Offering"). In addition,
Marathon will grant the
Underwriters an option to purchase from the Company up to an
additional 1,650,000 Offering Shares at the Offering Price for
additional gross proceeds of up to C$2,029,500 (the "Over-Allotment Option"). The
Over-Allotment Option is exercisable up to 48 hours prior to the
closing date of the Offering. This represents a 19% premium to the
closing price of common shares of the Company on the TSX Venture
Exchange (the "TSXV") on December 11,
2017 and a 21% premium to the volume weighted average price
of Marathon's shares over the last
five trading days.
The gross proceeds received by the Company from the Offering
will be used to incur Canadian exploration expenses on the
Corporation's properties in the Province of Newfoundland that are "flow-through mining
expenditures" (within the meaning of subsection 66(15) of the
Income Tax Act (Canada))
(the "Qualifying Expenditures"). The Qualifying Expenditures will
be renounced to the subscribers 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.
The Offering is being made by way of private placement in
Canada. The Flow-Through Shares
will not be offered or sold in the United
States. The Offering is expected to close on or about
December 21, 2017, and is subject to
customary closing conditions including, but not limited to, the
listing of the Flow-Through Shares on the TSXV and the relevant
securities regulatory authorities. The Flow-Through Shares issued
under this Offering will be subject to a four-month hold
period.
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 metres 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.
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