TORONTO, March 22 /CNW Telbec/ - Marathon PGM Corporation ("Marathon" or
"the Company") announced today its audited financial results for the year
ended December 31, 2006.
- Completion of a private placement financing in May 2006 generating net
proceeds of $4.7 million.
- Completion of a prospectus offering of units and flow-through shares in
November 2006, generating net proceeds of $9.2 million.
- Successful 2006 drilling campaign comprising 25,000 meters of diamond
drilling over 115 holes. This drilling has been incorporated since
year end into a revised resource estimate and an update of the June
2006 preliminary economic assessment, which indicated a 50% increase in
the expected mine life, from 9.2 to 13.5 years, a base-case pre-tax NPV
of $239 million, assuming a 7% discount rate, and a base-case pre-tax
IRR of 24.1%.
Marathon's financial condition improved in 2006. At December 31, 2006,
Marathon had working capital of $12.8 million, compared to $2.8 million at
December 31, 2005, due mainly to the public offering completed in
November 2006. The Company had sufficient funds at the year end to fund its
administration, exploration and development program for 2007.
Marathon's net loss for the year ended December 31, 2006 was
$1.6 million, or $0.11 per share, compared to $1.2 million, or $0.13 per
share, in 2005. The Company increased the scope of its operations in the year
and incurred higher expenditures in connection with staff and occupancy costs,
professional fees, and investor relations costs. Non-cash expenses associated
with stock-based compensation for directors, officers and consultants
increased substantially as a result of the increase in the price of Marathon's
Deferred development and exploration costs incurred on the Company's
Marathon PGM-Cu project totaled $4.6 million in 2006, compared to $2.3 million
in 2005, in line with an increased scope of drilling and investigative work on
the deposit in advance of a feasibility study, which is underway at present
and expected to be completed early in 2008.
This summary of financial highlights should be read in conjunction with
Marathon' audited financial statements for the year ended December 31, 2006
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
Expiry of Warrants
In other news, the Company advises holders of the Company's warrants
issued on March 25, 2005 in connection with the company's private placement
and exercisable into common shares at $1.90 per share that these warrants
expire on March 24, 2007. Because March 24 is not a business day, the
effective deadline for exercise of these warrants is March 26, 2007. To
exercise the warrants, warrant holders need to complete and execute the
exercise form attached to the warrant and surrender the warrant certificate
and exercise form, along with a certified cheque or money order covering the
cost of the shares being acquired, to Fogler Rubinoff LLP, the company's
Warrant Agent, at the following address:
Fogler Rubinoff LLP
1200 - 95 Wellington Street West
To be accepted, the executed exercise form and certified funds must be
received by Fogler Rubinoff LLP before the close of business on March 26,
About the Marathon PGM-Cu Project
The Company has a 100% interest in the Marathon PGM - Cu Project, located
about 10km north of Marathon, Ontario. A major drilling program is underway to
expand the resource on the 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
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
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