TORONTO, June 23, 2015 /CNW/ - Marathon Gold
Corporation ("Marathon" or the "Company") (TSX: MOZ) today
announced that it has initiated a non-brokered private placement of
flow-through shares and units to raise gross proceeds of up to
$3,500,000 (the "Offering").
The proceeds raised from this financing will be used to further
exploration work on Marathon's
Valentine Gold Camp, including resource expansion drilling at the
recently discovered Marathon Deposit area.
Under the terms of the Offering, which is subject to regulatory
approval, Marathon will issue
flow-through shares at a price of $0.30 per share. The gross proceeds realized from
this financing will be expended on qualifying Canadian Exploration
Expenses ("CEE") on Marathon's
mineral projects on or before December 31,
2016, and Marathon will
renounce all such CEE to the subscribers of the flow-through shares
with an effective date of December 31,
2015. All flow-through funds raised will be spent in 2015 on
further exploration of the Valentine Gold Camp.
In addition to the flow-through shares, Marathon will issue units at a price of
$0.25 per unit. Each unit will be
composed of one common share and one-half of one common share
purchase warrant. The warrants will have a two year term and an
exercise price of $0.34 per common
share. The funds raised will be used to advance the Valentine Gold
Camp and for general corporate purposes.
The Offering may close in multiple tranches with closing of the
first tranche expected to occur on or about June 26, 2015. 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 company focused on
its 100% owned Valentine Gold Camp located in central Newfoundland. The Valentine Gold Camp
currently hosts four near-surface, mainly pit-shell constrained,
gold resources totaling 1,060,100 oz. gold at 2.20 g/t (Measured
& Indicated) and 200,000 oz. gold at 2.83 g/t (Inferred),
(April 2015). These resources, open
along strike and to depth, cover less than 6% of the total length
of the highly prospective Valentine Lake Thrust Fault and
associated splay faults which host the majority of the gold
mineralization within the property. Certain of Marathon's exploration expenditures at its
mineral properties in Newfoundland
are funded by the Government of Newfoundland and Labrador through its Junior Exploration
Assistance program. 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, results or otherwise.
SOURCE Marathon Gold Corporation