TORONTO,
Aug. 5, 2014 /CNW/ - Marathon Gold
Corporation ("Marathon" or the "Company") (TSX: MOZ) is pleased
to announce that Rambler Metals and Mining plc (TSXV: RAB, AIM:
RMM) has exercised the first of four subscription rights to
acquire Marathon common shares
under the terms of a subscription agreement dated December 3, 2013 and previously announced on
December 4, 2013.
The issuance of Marathon's common shares by way of a
non-brokered private placement generated proceeds of $375,000 and cumulative proceeds of $875,000, with Rambler holding rights to invest
an additional $1,125,000 in three
quarterly tranches of $375,000
expiring on April 30, 2015.
Post-subscription, Rambler holds a total of 2,734,258 shares of
Marathon, representing 3.98% of the issued and outstanding
shares.
The terms of this financing are set out
below:
- Rambler subscribed to purchase 760,340 common shares at a price
of $0.4932 per share, for total
proceeds of $375,000. The share
price for this subscription, which closed on August 5, 2014, represents a 10% discount to the
5-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 quarterly tranches of up to
$375,000 per tranche from
August 1, 2014 through to
April 30, 2015 (the "Rights"),
representing potential additional proceeds of $1,125,000. 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.
- There are no finder's fees or other costs associated with this
financing.
Phillip Walford, President and
CEO of Marathon Gold commented,
"We are pleased with the continued investment
by Rambler Metals and Mining in Marathon Gold. We share the same
ideas about the potential of the Valentine Lake Property. Rambler's
previous investments have been very timely in assisting
Marathon in our exploration on the
Valentine Lake Property. This financing along with the recently
announced $ 3 million bought deal
financing will enable Marathon to
begin drilling on the Sprite and Rainbow targets on August 7.
Norman
Williams, President and CEO of Rambler Metals and Mining
commented,
"This continued investment into Marathon, and their flagship Valentine Lake
Project, is on the back of very impressive trenching results.
This region of the Newfoundland is
shaping up to be an emerging gold district with much of
Marathon's land package still
underexplored.
The Marathon
team continues to execute a focused exploration program that has
the potential to add new high grade ounces into an already robust
NI43-101 resource estimate. We are pleased to be provided
this opportunity to invest in Marathon and support advancing this project
through further diamond drilling and an economic
evaluation."
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. 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.
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.
About Rambler Metals and Mining
Rambler is a mining and development Company that
in November 2012 brought its first
mine into commercial production. 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.
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