Mr. Christopher Haldane reports
MARATHON ANNOUNCES CLOSING OF $5M BOUGHT DEAL OFFERING OF FLOW-THROUGH SHARES
Marathon Gold Corp. has closed a bought deal private placement of an aggregate of 4,066,000 common shares of the corporation that will qualify as flow-through shares (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) at an issue price of $1.23 per flow-through share for aggregate gross proceeds of $5,001,180, including the exercise in full of the underwriters' option to purchase an additional 1.65 million flow-through shares at the issue price. The offering was completed by a syndicate of underwriters led by Canaccord Genuity Corp., on behalf of a syndicate of underwriters that included Haywood Securities Inc., RBC Capital Markets and Raymond James Ltd.
The gross proceeds from the offering will be used by the corporation to incur Canadian exploration expenses that are flow-through mining expenditures (within the meaning of Subsection 66(15) of the Income Tax Act (Canada)) on the corporation's properties in the province of Newfoundland. The qualifying expenditures will be renounced to the subscribers of flow-through shares with an effective date no later than Dec. 31, 2017, in the aggregate amount of not less than the total amount of the gross proceeds raised from the offering.
"The money will be put to good use with the 15,000-metre winter drill program beginning at the Valentine Lake gold camp in early January. The boggy area between the Sprite deposits and the Marathon deposit is a prime target for discovering new mineralization while the area is frozen. Stepout drilling at the Marathon deposit will also focus on expanding the resource. It will be an exciting time," said Phillip Walford, president of Marathon.
About Marathon Gold Corp.
Marathon is a Toronto based gold exploration company rapidly advancing its 100-per-cent-owned Valentine Lake gold camp located in Newfoundland, one of the top mining jurisdictions in the world. The Valentine Lake gold camp currently hosts four near surface, mainly pit shell constrained, deposits with measured and indicated resources totalling 1,847,000 ounces of gold at 1.88 grams per tonne and inferred resources totalling 1,012,000 ounces of gold at 1.65 g/t. The majority of the resources occur in the Marathon and Leprechaun deposits, which also have resources below the pit shell. Both deposits are open to depth and on strike.
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