Mr. Matt Manson reports
MARATHON GOLD ANNOUNCES FILING OF PRELIMINARY PROSPECTUS
Marathon Gold Corp. has filed and obtained a receipt for a short-form preliminary prospectus with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with its previously announced offering, whereby a syndicate of underwriters co-led by Canaccord Genuity Corp., Sprott Capital Partners and RBC Capital Markets and including Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Beacon Securities Ltd., Haywood Securities Inc. and Laurentian Bank Securities Inc. has agreed to purchase from the company, on a bought deal basis, an aggregate of 20 million units of the company at a price of $1.50 per unit for aggregate gross proceeds of $30-million.
Each unit will be composed of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder to acquire one common share of the company at a price of $1.90 per common share at any time on or before that date which is 12 months after the closing of the offering.
In addition, the company has granted to the underwriters an overallotment option to acquire up to an additional three million units at a price of $1.50 per unit for additional gross proceeds of up to $4.5-million, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing date.
The company intends to use the net proceeds from the offering to continue the permitting, development and exploration of the Valentine gold project, as well as for working capital and general corporate purposes.
Closing of the offering is expected to occur on or about May 26, 2020, and is subject to certain conditions, including, but not limited to, receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.
Annual and special meeting update
The company is further pleased to confirm that Marathon has received approval in the Ontario Superior Court of Justice to defer its annual and special meeting of shareholders to a date later this year. The purpose of this deferral is to allow, when it is considered advisable by public health authorities to do so, an in-person meeting with shareholders in light of the current public health risks and restrictions arising from the COVID-19 pandemic. The company places importance on providing the opportunity for shareholders to have in-person contact with the board of directors and management team as it moves toward development of the Valentine gold project. Further guidance will be provided on the details of the AGM when a new date is determined.
About Marathon Gold Corp.
Marathon is a Toronto-based gold company advancing its 100-per-cent-owned Valentine gold project located in central Newfoundland, one of the top mining jurisdictions in the world. The project comprises a series of four mineralized deposits along a 20-kilometre system. An April, 2020, prefeasibility study outlined an open-pit mining and conventional milling operation over a 12-year mine life with a 36-per-cent after-tax rate of return. The project has estimated proven mineral reserves of 1.3 million ounces (26.3 million tonnes at 1.52 grams per tonne) and probable mineral reserves of 600,000 oz (14.8 Mt at 1.23 g/t), and total measured mineral resources (inclusive of mineral reserves) of 1.9 Moz (31.7 Mt at 1.86 g/t) and indicated mineral resources (inclusive of the mineral reserves) of 1.19 Moz (23.2 Mt at 1.60 g/t).
A copy of the short-form preliminary prospectus is available on-line at SEDAR.
We seek Safe Harbor.
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