/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, March 26 /CNW/ - Marathon PGM Corporation (the "Company") (TSX -
MAR) announced today that it has entered into an agreement with a syndicate of
underwriters led by TD Securities Inc. and including Blackmont Capital Inc.
(collectively the "Underwriters"), pursuant to which the Underwriters have
agreed to purchase, on a bought deal basis, 4,350,000 units ("Units") from the
Company at a price of $4.60 per Unit for total gross proceeds of approximately
$20 million. Each Unit is comprised of one common share and one-half of a
common share purchase warrant of the Company with each whole warrant entitling
the holder to purchase one common share of the Company at a price of $6.00 for
a period of 24 months following closing of the offering. The Underwriters have
also been granted an option (the "Over-Allotment Option"), exercisable for a
period up to 30 days from closing, to purchase for sale up to an additional
15% of the issue.
Closing is expected to occur on April 17, 2008.
The Underwriters will sell the Units in all provinces of Canada (except
Québec) in a public offering by way of a short form prospectus. The Units are
also being offered for sale in the United States on a private placement basis
pursuant to an exemption from the registration requirements of the United
States Securities Act of 1933, as amended. The Units may also be offered for
sale to qualified investors in certain jurisdictions outside Canada and the
The net proceeds of the Offering will be used to fund part of the
Company's future commitments under its joint venture with Benton Resources, to
continue development of the Marathon PGM-Cu mining property, and for general
corporate and working capital purposes.
This news release is not an offer of the securities for sale in the
United States. The securities being offered have not been registered under the
United States Securities Act of 1933, as amended, and may not be offered or
sold in the United States or to, or for the account or benefit of, U.S.
persons absent registration or an applicable exemption from registration
requirements. Any public offering of the securities to be made in the United
States will be made by means of a prospectus that may be obtained from the
Company or the Underwriters and that will contain detailed information about
the Company and its management, as well as financial statements. This press
release shall not constitute an offer to sell or the solicitation of an offer
to buy nor shall there be any sale of the securities in any jurisdiction in
which such offer, solicitation or sale would be unlawful.
About Marathon PGM Corporation
Marathon is in the process of completing a definitive feasibility study,
on the Marathon PGM-Cu deposit. Marathon also has development and exploration
stage properties in southeastern Manitoba and western Newfoundland and
Labrador. Marathon's management plans to build on this focus through the
advancement of its properties, focusing on resource development and by
examining other strategic PGM and base metal opportunities within Canada.
For further information:
For further information: Phillip C. Walford, P.Geo., President, Chief
Executive Officer, Tel: (416) 987-0711, email@example.com; David Leng,
P.Geo: Tel: (416) 849-3432, Fax: (416) 861-1925, firstname.lastname@example.org