TORONTO,
May 12, 2014 /CNW/ - Marathon Gold
Corporation ("Marathon" or the "Company") (TSX: MOZ) is pleased
to announce that it has closed the 1st tranche of its
non-brokered private placement. On closing, Marathon sold (i) 2,181,283 units (the
"Units") at a price of $0.39 per Unit
with each Unit consisting of one common share of the Company (the
"Unit Shares") and one half of one common share purchase warrant of
the Company. Each whole warrant is exercisable for one common share
of the Company ("Warrant"), for a period of 24 months from the
closing date at a price of $0.50 per
Warrant Share and (ii) 20,000 flow-through common shares
("Flow-Through Shares") at a price of $0.44 per Flow-Through Share for aggregate gross
proceeds of $859,500 (the
"Offering"). The proceeds of the Offering will be used for further
exploration at Valentine Lake.
"The Company has also recently received a
$100,000 grant from the Department of
Natural Resources, Newfoundland
and Labrador's 2013 Junior
Exploration Assistance Program for drilling completed at Valentine
Lake project. This grant money along with new money raised puts us
in good shape at the start our summer field season. Our immediate
focus will be on the Sprite area where there has been very
successful drilling recently. We are excited to see how the Sprite
Area develops over the summer work program," commented Phillip Walford, President and CEO of
Marathon.
All of the shares issued pursuant to the Offering
will be subject to a statutory hold period of four months and one
day from the closing date.
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 advance 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