TORONTO, Aug. 14 /CNW/ - Marathon PGM Corporation ("Marathon" or "the
Company") announced today its financial results for the six months ended
June 30, 2008.
Financial and Operational Highlights
- Entering into an option and joint venture agreement with Benton
Resources Corp. under which Marathon may earn a 60% interest in the
Bamoos-Claw Lake-Four Dam ("BCF") property located immediately north
of the planned Main Zone pit.
- Closing a unit financing which raised gross proceeds of $20 million
in April 2008.
- Completing 2008 drilling programs at the Marathon and BCF properties,
with a total of 21,000 meters of infill, exploration and condemnation
drilling on the two properties.
- Finalizing metallurgical recoveries for the purpose of the definitive
- Completing 2008 resource definition drilling programs on the Bird
River and Ore Fault properties, with resource estimates expected by
the end of the year.
- Entering into an option and joint venture agreement with North Range
Resources Ltd. under which Marathon may earn up to a 75% interest in
the Tim's Brook property, an undeveloped gold and silver prospect
surrounded by Marathon's Steel Mountain Complex property.
- Completing lakebed sediment sampling and airborne geophysical
surveying at the Steel Mountain and Tim's Brook properties and
starting up summer prospecting and surface sampling programs.
- Completing the acquisition of Discovery PGM Exploration Ltd., owner
of the Geordie Lake property approximately 14km west of the Marathon
At June 30, 2008, Marathon had working capital of $22.9 million, compared
to $12.3 million at December 31, 2007, with operations and project spending in
the quarter amounting to $7.2 million offset by net proceeds of $18.9 million
received from the public offering of units and the exercise of outstanding
options. The Company had sufficient funds at June 30, 2008 to fund its
administration, exploration and development program for the remainder of the
year. The proceeds of the unit offering which closed on April 17, 2008 will be
used to advance the Company's mineral properties, to fund down payments on
certain components of the mining infrastructure for the Marathon PGM-Cu
property, and for general corporate overheads.
Marathon's net loss for the six months ended June 30, 2008 was
$2.7 million, compared to $1.1 million in 2007, due to increased exploration
expenditures associated with the Bird River, Ore Fault, Steel Mountain and
Tim's Brook properties. Deferred property acquisition, development and
exploration costs incurred on the Marathon PGM-Cu, BCF and Geordie Lake
properties totaled $5.4 million in the first two quarters of 2008, compared to
$4.3 million in 2007, in line with an increased scope of drilling and
investigative work on the Marathon PGM-Cu and BCF deposits and increased
activity on the definitive feasibility study.
This summary of financial highlights should be read in conjunction with
Marathon's unaudited financial statements for the three and six months ended
June 30, 2008 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 at
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.
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, 2007. 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
The Toronto Stock Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this release.
On Behalf of Marathon PGM
"Phillip C. Walford"
Phillip C. Walford
President, Chief Executive Officer
For further information:
For further information: David Leng, P.Geo.: firstname.lastname@example.org, Tel:
(905) 537-5377, Fax: (415) 861-1925