TORONTO,
April 2, 2014 /CNW/ - Marathon
Gold Corporation ("Marathon" or the "Company") (TSX: MOZ)
announced today the closing of the second tranche of a non-brokered
private placement of common shares to Rambler Metals & Mining
plc (TSX.V: RAB, AIM: RMM) ("Rambler") under the terms of a
subscription agreement dated December 3,
2013 and previously announced on December 4, 2013.
The placement of Marathon's common shares by way of a
non-brokered private placement generated proceeds of $250,000 and cumulative proceeds of $500,000, with Rambler holding an option to
invest an additional $1.5 million
going forward.
The terms of this financing are set out
below:
- Rambler subscribed to purchase 797,448 common shares at a price
of $0.3135 per share, for total
proceeds of $250,000. The share
price for this subscription, which closed on April 1, 2014, subject to TSX approval,
represents a 10% premium to the 60-day volume-weighted average
price ("VWAP") of Marathon's
shares on the trading day prior to Rambler providing notice to
subscribe.
- Marathon has granted Rambler
rights to purchase additional shares in four quarterly tranches of
up to $375,000 per tranche commencing
May 1, 2014 (the "Rights"),
representing potential additional proceeds of $1,500,000. The pricing applicable to all
investments pursuant to the Rights will be a 10% discount to the
greater of the 60- and 5-day VWAP's ending on the day prior
to Rambler giving notice of its intention to subscribe these
shares. If Rambler does not exercise its purchase rights in
any quarter, they may elect to carry such rights forward for an
additional three months subject to Marathon's consent under the same pricing
conditions as the quarterly terms.
- There are no finder's fees or other costs associated with this
financing.
Phillip
Walford, President and CEO of Marathon Gold,
commented,
"Marathon is
pleased with continued investment by Rambler. The additional funds
will enable Marathon to focus
additional work on the Valentine Lake project. Marathon's systematic approach to exploration
and resource development is working and Sprite is proof of
that. We are pleased that Rambler shares the same vision of the
potential of the Valentine Lake project as we do."
Norman
Williams, President and CEO of Rambler Metals and Mining,
commented,
"The Marathon
team continues to add value to the Valentine Lake project.
Their focus on the priority targets has led to the recent discovery
of near surface high grade gold potential along with providing
further direction on the next areas that will be target exploration
on the property. There remains a significant underexplored trend of
mineralization at Valentine Lake guided by a company with a track
record of success."
About Rambler Metals & Mining
Rambler is a mining and development company that
brought its first mine into commercial production in November
2012. The group has a 100 per cent ownership in the Ming
Copper-Gold Mine, a fully operational base and precious metals
processing facility and year round bulk storage and shipping
facility; all located on the Baie
Verte peninsula, Newfoundland and Labrador, Canada.
The Company's vision is to be Atlantic Canada's leading mine operator and
resource developer through growth and expansion of its existing
assets; discovering new deposits; strategic partnerships; mergers
and acquisitions. In addition to the Ming Mine, Rambler has
strategic investments in the former producing Hammerdown gold mine,
Little Deer/ Whales Back copper mines and the advanced Valentine
Lake Gold Project.
Rambler is dual listed in London under AIM: RMM and in Canada under TSX-V: RAB.
For more information on Rambler Metals &
Mining visit www.ramblermines.com.
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 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