TORONTO, March 31, 2015 /CNW/ - Marathon Gold
Corporation (MOZ-TSX) ("Marathon") announced today its
financial results for the year ended December 31, 2014.
Highlights:
- At December 31, 2014, Marathon
held $2.7 million in cash and
$2.6 million in working
capital.
- During the year ended December 31,
2014 Marathon completed five private placements of common
shares, units and flow through shares which generated aggregate
gross proceeds of $6.5 million.
- The proceeds of these financings and Marathon's existing cash
reserves were used to fund a drilling program in the winter of
2014, which was completed in March
2014; a successful program of focused trenching and
prospecting in the Rainbow, Sprite and Marathon Areas following up
on magnetic lows interpreted as splays off the Valentine Lake
Thrust Fault; and a renewed drilling program which commenced in
August 2014 and was completed in
March 2015 focused on the existing
Rainbow and Sprite Zones and the newly discovered Marathon
Zone. The results of drilling throughout 2014 and the
first quarter of 2015 are being incorporated into an updated
mineral resource estimate for the Victory Gold Deposit and initial
resource estimates for the Sprite and Marathon Zones. These
resources will be completed in the second quarter of 2015.
- In the fourth quarter of 2014, Marathon determined that it
would no longer fund the operations of Golden Chest LLC ("GCLLC"),
the owner of the Golden Chest mining property in which Marathon
holds a 52.22% interest, and began discussions to sell its
interest. At December 31, 2014,
Marathon reclassified the assets of GCLLC as held for sale and
recognized a non-cash impairment loss of $8.2 million attributed to discontinued
operations, of which $3.9 million is
attributable to the non-controlling interest in GCLLC. At the
date of this release, Marathon is continuing to work toward a sale
of its interest in GCLLC.
Operating results:
Marathon's results of operations for the three and twelve months
ended December 31, 2014 and 2013 are
summarized below. The loss from continuing operations
reflects ongoing efforts by management to reduce general and
administrative costs and to minimize exploration activity on its
non-core mining properties.
|
|
Three months
ended
December
31
|
|
Year
ended
December
31
|
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
$
|
|
$
|
|
$
|
|
$
|
Expenses:
|
|
|
|
|
|
|
|
|
Exploration
expenses
|
|
726
|
|
2,054
|
|
24,010
|
|
137,785
|
General and
administrative expenses
|
|
299,097
|
|
257,061
|
|
1,213,509
|
|
1,358,622
|
Other
expense
|
|
-
|
|
-
|
|
1,903
|
|
-
|
Interest
income
|
|
(11,491)
|
|
(3,655)
|
|
(17,444)
|
|
(29,050)
|
Loss on
investments
|
|
68,526
|
|
-
|
|
68,526
|
|
3,208
|
Foreign exchange
(gain) loss
|
|
33
|
|
-
|
|
(139)
|
|
568
|
Loss from continuing
operations before tax
|
|
356,891
|
|
255,460
|
|
1,290,365
|
|
1,471,133
|
Income
taxes
|
|
(146,853)
|
|
-
|
|
(146,853)
|
|
102,635
|
Loss from continuing
operations for the year
|
|
210,128
|
|
255,460
|
|
1,143,512
|
|
1,573,768
|
Loss from
discontinued operations, net of tax
|
|
8,212,288
|
|
180,095
|
|
8,212,288
|
|
-
|
Net loss for the
year
|
|
8,422,416
|
|
435,555
|
|
9,355,800
|
|
1,573,768
|
Net loss attributable
to non-controlling interest
|
|
(3,923,832)
|
|
-
|
|
(3,923,832)
|
|
-
|
Loss attributable
to Marathon Gold shareholders
|
|
4,498,494
|
|
435,555
|
|
5,431,968
|
|
1,573,768
|
This press release should be read in conjunction with Marathon's
audited consolidated financial statements for the year ended
December 31, 2014 and the related
Management's Discussion and Analysis, both of which are available
on www.sedar.com.
About Marathon Gold Corporation
Marathon Gold is a
Toronto based gold resource
company with exploration focused on its 100% owned Valentine Gold
Camp located in central Newfoundland. The Valentine Gold Camp
currently hosts two near-surface, mainly pit-shell constrained, NI
43-101 compliant gold resources totaling 816,000 oz. gold at 2.24
g/t (Measured & Indicated) and 149,000 oz. gold at 2.64 g/t
(Inferred), (August, 2013). These resources, open along strike and
to depth, cover less than 5% of the total length of the highly
perspective Valentine Lake Thrust Fault and associated splay faults
which host the majority of the gold mineralization within the
property. Newly discovered gold zones, including the Sprite Zone
and Marathon Zone, have returned wide intervals of near-surface
good gold grades and have yet to be incorporated into new gold
resources for the Valentine Gold Camp. For more information please
visit www.marathon-gold.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 or results otherwise.
SOURCE Marathon Gold Corporation