TORONTO,
July 31, 2014 /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"), pursuant to which a
syndicate of underwriters led by Canaccord (the "Underwriters")
will purchase, in any combination, flow-through common shares of
the Company ("Flow-Through Shares") at a price of $0.55 per Flow-Through Share and units of the
Company ("Units") at a price of $0.50
per Unit to raise aggregate gross proceeds of $3,000,000 (the "Underwritten Offering").
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 $0.75 per
share.
In addition, the Company will grant the Underwriter
an option to sell additional units (the "Over-Allotment Units") or
flow-through common shares (the "Over-Allotment Flow-Through
Shares") of the Company, in any combination of Over-Allotment Units
or Over-Allotment Flow-Through Shares (and together with the Units
and Flow-Through Shares, the "Offered Securities"), to raise
additional gross proceeds of up to $1,000,000 (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 August 21, 2014 (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
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 Sprite Area adjoins
the Leprechaun Gold Deposit and recent promising drilling is
located 1.5 km to the north east of the Leprechaun Gold
Deposit.
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