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TORONTO, Oct. 25 /CNW Telbec/ - Marathon PGM Corporation (MAR -- TSX)
("Marathon" or the "Company") is pleased to announce that it has entered into
an agreement with Octagon Capital Corporation ("Octagon") pursuant to which
Octagon has agreed to act as agent for an offering by way of a private
placement of up to $6,000,000 in Flow-Through Shares at a price $6.00 per
share. Octagon will have the option to increase the offering by up to an
additional $500,000 of Flow-Through Shares at the same price prior to the
closing of the offering.
Marathon will pay Octagon a commission of 5% of the gross proceeds of the
offering and will grant Octagon broker warrants to acquire such number of
common shares of the Company equal to 7% of the aggregate number of
Flow-Through Shares sold in the offering. The broker warrants will be
exercisable for a period of two years at today's closing market price per
common share as determined by the Toronto Stock Exchange.
The offering is scheduled to close on or about November 15, 2007 and is
subject to certain conditions including, but not limited to, the receipt of
all necessary approvals including the approval of the Toronto Stock Exchange.
Proceeds from the offering will be used to incur Canadian exploration
expenditures on the continued exploration of Marathon's properties prior to
December 31, 2008. Drilling at the Marathon PGM-Cu project will resume in
January 2008 to expand known zones of mineralization and explore for new
resources. A drill program will commence in January 2008 at Marathon's Bird
River Sill property in southeast Manitoba. Drilling will focus on the
Coppermine and Page zones to develop 43-101 compliant resources. Exploration
at the Steel Mountain property in western Newfoundland and Labrador is planned
to consist of a geophysical survey, prospecting and mapping.
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
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:
For further information: David Leng, P.Geo: firstname.lastname@example.org, (416)
849-3432, Fax: (416) 861-1925; For media inquiries, please contact: Vanessa
Napoli, email@example.com, (514) 939-3989