TORONTO, April 21, 2016 /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" or the "Underwriter"), pursuant to which
the Underwriter will purchase, in any combination, flow-through
common shares of the Company ("Flow-Through Shares") at a price of
$0.27 per Flow-Through Share and
units of the Company ("Units") at a price of $0.23 per Unit to raise aggregate gross proceeds
of $2,000,140 (the "Underwritten
Offering"). The Underwritten Offering is subject to a minimum of
C$502,500 of gross proceeds to be
raised through the issue of Units.
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 $0.32 per share.
In addition, the Company will grant the Underwriter an option to
sell additional units (the "Over-Allotment Units, and together with
the Units and Flow-Through Shares, the "Offered Securities"), to
raise additional gross proceeds of up to $1,000,040 (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
May 5, 2016 (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 company focused on
its 100% owned Valentine Gold Camp located in central Newfoundland. The Valentine Gold Camp
currently hosts four near-surface, mainly pit-shell constrained,
gold resources totaling 1,060,100 oz. gold at 2.20 g/t (Measured
& Indicated) and 200,000 oz. gold at 2.85 g/t (Inferred),
(April 2015). These resources, open
along strike and to depth, cover less than 6% of the total length
of the highly prospective Valentine Lake Thrust Fault and
associated splay faults which host the majority of the gold
mineralization within the property. For more information please
visit www.marathongold.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