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TORONTO, Nov. 15 /CNW Telbec/ - Marathon PGM Corporation (TSX: MAR) -
("Marathon" or "the Company") announced today that it has closed the
previously announced private placement of 1,083,333 flow through shares at a
price of $6.00 per share for aggregate gross proceeds of $6,499,998. The
offering was led by Octagon Capital Corporation and included Fraser Mackenzie
Marathon paid a commission of 5% of the gross proceeds of the offering
and issued compensation warrants to Octagon Capital Corporation and Fraser
Mackenzie Limited to acquire up to an aggregate of 75,833 Marathon common
shares for a period of two years at $4.85 per share.
Marathon will use the proceeds to resume exploration and development work
at the Marathon, Bird River and Steel Mountain properties.
Marathon PGM-Cu Property
Drilling is planned to resume at the Marathon PGM-Cu property in January
2008. The Company plans to initially focus on infill drilling in order to
convert any inferred material within the pit shell into measured and
indicated. Minimizing inferred resources will allow the majority of the
measured and indicated resource to translate to proven and probable reserves.
Subsequently, the Company will focus drilling on the SG and WD zones and
southwards, with the intent of discovering additional resources. The SG and WD
zones were discovered by Marathon in 2006, and the Company firmly believes
that these zones represent outstanding potential to host significant
Bird River PGM and Ni-Cu Property
Marathon has identified three areas within the Bird River PGM and Ni-Cu
property to be focused on, starting in January 2008. Marathon plans
development of NI43-101 compliant resources at the Page and Ore Fault zones
based on results of the planned 2008 drilling. Exploration drilling is planned
for the Coppermine zone in order to test the downdip potential of surface
mineralization that the Company has identified over a strike length of 800 m.
Mineralization at the Coppermine zone is similar to the Page and Ore Fault
zones, which are located on-strike over 20 km to the east.
Steel Mountain PGM and Ni-Cu Property
An expanded exploration program is planned for the Steel Mountain PGM and
Ni-Cu property, located in western Newfoundland and Labrador. Initial results
from the Company's prospecting outlined extensive areas of anomalous PGM and
base metal values. Expanding the exploration program will give a better
understanding of the geology and property's potential to host resources.
Phillip Walford, President and CEO stated "We are currently finalizing
our plans and gearing up for the 2008 exploration campaigns. Developing
resources at Bird River and finding new resources at Marathon will the primary
focus for us this year."
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 km2 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, (905)
537-5377, Fax: (416) 861-1925; For media inquiries, please contact: Vanessa
Napoli, email@example.com, (514) 939-3989