TORONTO, Nov. 14 /CNW Telbec/ - Marathon PGM Corporation
(MAR -- TSX)("Marathon" or "the Company") announced today its unaudited
financial results for the nine months ended September 30, 2007.
- Completing a highly successful 2007 drilling program of 38,399 meters
of infill, exploration, geotechnical, and condemnation drilling on the
Marathon PGM-Cu property, with an updated mineral resource estimate
expected prior to year end.
- Acquiring an option interest on the Bird River Sill project, a highly
prospective Ni-Cu-PGM property located approximately 120 km from
Winnipeg, Manitoba, from Gossan Resources Limited, and commencing
prospecting and preparations for a winter 2008 drilling program.
- Acquiring an option interest in the Ore Fault and Lotus claims adjacent
to the Gossan property, bringing the total land package owned or under
option to Marathon to 8,355 hectares.
- Acquiring through staking and an option agreement a total of
23,625 hectares of claims in the Steel Mountain Complex in western
Newfoundland and commencing prospecting and surface sampling in advance
of geophysical surveying and mapping in 2008.
Marathon's financial condition remains strong. At September 30, 2007,
Marathon had working capital of $7.8 million, compared to $12.8 million at
December 31, 2006, as operations and project spending amounting to
$7.8 million were offset partially by $3.0 million in proceeds from the
exercise of outstanding warrants and options. The Company had sufficient funds
at September 30, 2007 to fund its administration, exploration and development
program for the remainder of the year.
On October 25, 2007 the Company entered into an agreement with Octagon
Capital Corporation for a brokered private placement of 1,083,333 flow-through
shares at a price of $6.00 per share, for gross proceeds of $6.5 million. The
proceeds of this offering, which is expected to close on November 15, 2007,
will be used to fund Marathon's 2008 exploration programs in Ontario, Manitoba
Marathon's net loss before tax for the nine months ended September 30,
2007 was $2.1 million, compared to $1.5 million in 2006. The Company wrote off
exploration costs amounting to $306,000 in connection with the Bird River Sill
and Steel Mountain exploration projects and incurred higher general and
administrative expenses. Exploration costs incurred in cash on the Company's
Marathon PGM-Cu project totaled $6.5 million in the first nine months of 2007,
compared to $4.0 million in the same period in 2006, in line with an increased
scope of drilling and investigative work on the deposit and activity to date
on the definitive feasibility study.
This summary of financial highlights should be read in conjunction with
Marathon' unaudited financial statements for the three and nine months ended
September 30, 2007 and the related Management's Discussion and Analysis, both
of which are available on www.sedar.com. The Company's Web site may be found
About Marathon PGM Corporation
The Company has a 100-per-cent interest in the Marathon PGM -- Cu
project, located about 10 kilometers north of Marathon, Ont. The project is
currently undergoing a definitive feasibility study and a 35,000 m drill
campaign. As announced previously, the company has completed a revised
preliminary economic assessment in compliance with the provisions of National
Instrument 43-101, showing a measured resource of 39.2 million tonnes
containing 1.6 million ounces of PGM and gold and 285 million pounds of
copper, and an indicated resource of 28.9 million tonnes containing
1.1 million ounces of PGM and gold and 178 million pounds of copper. An
additional low-grade resource was also identified in the report completed by
P&E Mining Consultants Inc. and filed on SEDAR on April 5, 2007.
As part of its growth strategy, in April 2007, Marathon entered into an
option agreement with Gossan Resources on the Bird River Sill PGM and Cu-Ni
property, located in southeastern Manitoba. Prospecting and data compilation
of the Bird River property is focused over several key areas, including the
Coppermine, Page East, Page West and Galaxy Zones. Marathon can earn-in up to
a total 70% interest by completing a bankable feasibility study and arranging
project financing. In October 2007, Marathon entered into an agreement with
Bird River Mines Inc on the Ore Fault and Lotus Properties, located on the
eastern margin of Marathon's Bird River property.
In August 2007, Marathon acquired the Steel Mountain PGM and Cu-Ni
property in western Newfoundland and Labrador and has commenced the initial
phase of exploration on this 227.5 km(2) property. The Company holds a 100%
interest in the Steel Mountain property.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION Except for
statements of historical fact relating to the Company, certain information
contained herein constitutes "forward-looking statements". Forward-looking
statements are frequently characterized by words such as "plan," "expect,"
"project," "intend," "believe," "anticipate" and other similar words, or
statements that certain events or conditions "may" or "will" occur.
Forward-looking statements are based on the opinions and estimates of
management at the date the statements are made and are subject to a variety of
risks and uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the forward-looking
statements. These risks and uncertainties include but are not limited to those
identified and reported in Management's Discussion and Analysis for the year
ended December 31, 2006. Circumstances or management's estimates or opinions
could change, and management disclaims any obligation to revise or update
forward-looking statements, whether for new information, future events or
otherwise. The reader is cautioned not to place undue reliance on
On Behalf of Marathon PGM:
"Phillip C. Walford"
Phillip C. Walford, P.Geo.
President, Chief Executive Officer
For further information:
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