TORONTO, April 2, 2014 /CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (TSX: MOZ) announced today the closing of the second tranche of a non-brokered private placement of common shares to Rambler Metals & Mining plc (TSX.V: RAB, AIM: RMM) ("Rambler") under the terms of a subscription agreement dated December 3, 2013 and previously announced on December 4, 2013.
The placement of Marathon's common shares by way of a non-brokered private placement generated proceeds of $250,000 and cumulative proceeds of $500,000, with Rambler holding an option to invest an additional $1.5 million going forward.
The terms of this financing are set out below:
- Rambler subscribed to purchase 797,448 common shares at a price of $0.3135 per share, for total proceeds of $250,000. The share price for this subscription, which closed on April 1, 2014, subject to TSX approval, represents a 10% premium to the 60-day volume-weighted average price ("VWAP") of Marathon's shares on the trading day prior to Rambler providing notice to subscribe.
- Marathon has granted Rambler rights to purchase additional shares in four quarterly tranches of up to $375,000 per tranche commencing May 1, 2014 (the "Rights"), representing potential additional proceeds of $1,500,000. The pricing applicable to all investments pursuant to the Rights will be a 10% discount to the greater of the 60- and 5-day VWAP's ending on the day prior to Rambler giving notice of its intention to subscribe these shares. If Rambler does not exercise its purchase rights in any quarter, they may elect to carry such rights forward for an additional three months subject to Marathon's consent under the same pricing conditions as the quarterly terms.
- There are no finder's fees or other costs associated with this financing.
Phillip Walford, President and CEO of Marathon Gold, commented,
"Marathon is pleased with continued investment by Rambler. The additional funds will enable Marathon to focus additional work on the Valentine Lake project. Marathon's systematic approach to exploration and resource development is working and Sprite is proof of that. We are pleased that Rambler shares the same vision of the potential of the Valentine Lake project as we do."
Norman Williams, President and CEO of Rambler Metals and Mining, commented,
"The Marathon team continues to add value to the Valentine Lake project. Their focus on the priority targets has led to the recent discovery of near surface high grade gold potential along with providing further direction on the next areas that will be target exploration on the property. There remains a significant underexplored trend of mineralization at Valentine Lake guided by a company with a track record of success."
About Rambler Metals & Mining
Rambler is a mining and development company that brought its first mine into commercial production in November 2012. The group has a 100 per cent ownership in the Ming Copper-Gold Mine, a fully operational base and precious metals processing facility and year round bulk storage and shipping facility; all located on the Baie Verte peninsula, Newfoundland and Labrador, Canada.
The Company's vision is to be Atlantic Canada's leading mine operator and resource developer through growth and expansion of its existing assets; discovering new deposits; strategic partnerships; mergers and acquisitions. In addition to the Ming Mine, Rambler has strategic investments in the former producing Hammerdown gold mine, Little Deer/ Whales Back copper mines and the advanced Valentine Lake Gold Project.
Rambler is dual listed in London under AIM: RMM and in Canada under TSX-V: RAB.
For more information on Rambler Metals & Mining visit www.ramblermines.com.
About Marathon Gold Corporation
Marathon is a Toronto based gold resource Development Company focused on the Valentine Lake property in central Newfoundland. Marathon's mission is to rapidly move the Valentine Lake project towards advanced exploration and pre-development stages. For more information visit: www.marathon-gold.com.
About the Valentine Lake Project
The Valentine Lake property, owned 100% by Marathon Gold Corporation, hosts two well defined gold deposits with NI 43-101 compliant resources: the Leprechaun Gold Deposit and the Victory Gold Deposit. The Leprechaun Gold Deposit is located near the south-western end of the Valentine Lake property, and the Victory Gold Deposit is located 13 kilometers along strike to the north-east. These gold deposits form part of a 23 km long, highly prospective gold-bearing mineralized corridor focused along the Valentine Lake Thrust Fault.
The Leprechaun Gold Deposit has a NI 43-101 compliant Open Pit and Underground Resource (refer to August 1, 2013 news release). The Open Pit Resource is Measured 3.5 million tonnes containing 247,000 oz Au, and Indicated 6.2 million tonnes containing 412,000 oz Au, and Inferred 1.2 million tonnes at 1.82 g/t Au containing 71,000 oz Au. The Underground Resource is Measured 108,000 tonnes containing 17,000 oz Au, and Indicated 764,000 tonnes containing 100,000 oz Au, and Inferred 349,000 tonnes containing 69,000 oz Au. As a result of favorable drilling results in 2013 and 2014, the Sprite Area, which is adjacent to the Leprechaun Gold Deposit, will be a focus of continued exploration this year.
The Victory Gold Deposit (formerly Valentine East Hill) has an Open Pit Resource (refer to August 1, 2013 news release). The Open Pit Resource is Indicated 761,000 tonnes containing 41,000 oz Au, and Inferred 199,000 tonnes containing 9,000 oz Au. Both deposits are open to expansion.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon Gold Corporation, certain information contained herein constitutes "forward-looking statements". Forward-looking statements include statements that are predictive in nature, depend upon or refer to future events or conditions, or include words such as "expects", "anticipates", "plans", "believes", "considers", "intends", "targets", or negative versions thereof and other similar expressions, or future or conditional verbs such as "may", "will", "should", "would" and "could". We provide forward-looking statements for the purpose of conveying information about our current expectations and plans relating to the future and readers are cautioned that such statements may not be appropriate for other purposes. By its nature, this information is subject to inherent risks and uncertainties that may be general or specific and which give rise to the possibility that expectations, forecasts, predictions, projections or conclusions will not prove to be accurate, that assumptions may not be correct and that objectives, strategic goals and priorities will not be achieved. These risks and uncertainties include but are not limited to those identified and reported in Marathon Gold Corporation's public filings, which may be accessed at www.sedar.com. Other than as specifically required by law, we undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made, or to reflect the occurrence of unanticipated events, whether as a result of new information, future events, results or otherwise.
SOURCE: Marathon Gold Corporation
For further information: Christopher Haldane, Investor Relations Manager, Tel: 1-416-987-0714, E-mail: email@example.com