Marathon Gold Announces Closing of C$10 Million Equity Financing
November 29 2011 - 10:27AM
PR Newswire (Canada)
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES TORONTO, Dec. 2, 2011 /CNW/ -
Marathon Gold Corporation ("Marathon" or the "Company") today
reported that it has closed its previously announced public
offering (the "Offering") with a syndicate of underwriters co-led
by Canaccord Genuity Corp. and Haywood Securities Inc., and
including Fraser Mackenzie Limited (collectively the
"Underwriters"). 3,928,000 units (the "Units") of the Company were
sold at a price of C$1.40 per Unit (the "Unit Offering") and
2,728,000 flow-through common shares (the "FT Shares") of the
Company were sold at a price of C$1.65 per FT Share (the "FT
Offering") for aggregate gross proceeds of C$10,000,400. Each
Unit consists of one common share of the Company and one-half of
one common share purchase warrant. Each warrant entitles the
holder to purchase one common share of the Company at an exercise
price of C$1.80 per common share until June 2, 2014. The Company
has also granted the Underwriters an over-allotment option to
purchase up to that number of additional Units (the "Over-Allotment
Units", and together with the Common Shares and FT Shares, the
"Offered Securities") equal to 15% of the Units sold pursuant to
the Offering, exercisable at any time up to 30 days after and
including the closing of the Offering at a price equal to the
offering price of the Units of C$1.40 per Unit. "Marathon is
pleased with the support from existing and new shareholders that
have participated in the financing. As the operator, we are
eager to commence a 40,000 m drilling program in January 2012 on
our flagship Valentine Lake Gold project. Marathon also anticipates
the release of our updated Resource Estimate on our Leprechaun Gold
deposit in Newfoundland, as well as an initial Resource Estimate on
our Golden Chest project in Idaho," stated Phillip Walford,
President and CEO of Marathon Gold Corp. "With the closing of this
financing and the anticipation of upcoming milestones, we are
equipped to begin 2012 with gusto." The Company intends to use the
net proceeds from the Offering for planned 2012 exploration
programs on its Newfoundland and Idaho gold projects, including a
40,000 m drill program at the Valentine Lake joint venture with
Mountain Lake Resources Inc. and a 25,000 m drill program at the
Golden Chest joint venture with New Jersey Mining Company, and for
general corporate and working capital purposes. The Offering was
made pursuant to a short form prospectus filed in each of the
provinces of Canada other than Quebec. The Offered Securities are
not 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 does not constitute an offer of
securities for sale in the United States. The securities being
offered have not been, nor will be, registered under the United
States Securities Act of 1933, as amended, and may not be offered
or sold within the United States absent U.S. registration or an
applicable exemption from U.S. registration requirements. Any
public offering of the securities to be made in the United States
will be made by means of a prospectus that may be obtained from the
Company and that will contain detailed information about the
Company and management, as well as financial statements. About
Marathon Gold Corporation Marathon Gold Corporation is a North
American gold resource development company, with projects located
in the mining friendly province of Newfoundland and Labrador, and a
project in the prolific Coeur d'Alene Mining District of
Idaho. Marathon has a project pipeline consisting of early
stage exploration to advanced resource development projects.
Marathon is continually evaluating new gold resource development
projects of merit that are located within the Americas.
Marathon's focused and low-cost approach to exploration and
resource development has an established record of delivering rapid
growth. For more information 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 or results otherwise. Marathon Gold
Corporation CONTACT: Marathon Gold CorporationJennie GuayInvestor
Relations ManagerTel: 1-416-987-0714Email: jguay@marathon-gold.com
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