TORONTO, Dec. 30 /CNW/ - Marathon Gold Corporation (MOZ-TSX) ("Marathon Gold") today announced that it has closed a non-brokered private placement of common shares to Stillwater Mining Company ("Stillwater") for gross proceeds of $3,366,700 (the "Offering") today, as previously announced on Dec 23, 2010.
Under the terms of the Offering, Stillwater purchased 2,570,000 common shares at a price of $1.31 per share, representing a 15% discount to the five day volume-weighted average trading price of the Marathon Gold shares on the Toronto Stock Exchange ("TSX"). There are no commissions associated with the Offering. All of the shares issued pursuant to the Offering are subject to a statutory four month hold period.
Phillip Walford, President and CEO of Marathon Gold, commented, "Marathon Gold has very aggressive plans to expand the resources for both the Valentine Lake Gold Project and the Golden Chest Project in 2011. We are pleased that Stillwater has made a significant investment in the company at this time, as the funding will enable us to immediately advance both of our core projects."
About Marathon Gold Corporation:
Marathon Gold Corporation is one of Canada's newest gold resource development companies, with projects located in the mining friendly province of Newfoundland, Labrador and North Idaho in the USA. Marathon Gold has a tiered project pipeline consisting of early stage exploration to advanced resource development projects which can be built into mineable reserves. Marathon Gold is continually evaluating new gold resource development projects of merit that are located within the Americas. Marathon Gold's focused and low-cost approach to resource development and exploration has an established record of delivering rapid growth. Marathon Gold is the operator of the Valentine Lake Project under the sub-option and joint venture agreement ("OJVA") between Mountain Lake Resources Inc. and Marathon Gold owns a 50% interest in Golden Chest LLC, owner of the Golden Chest mine in North Idaho.
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David Leng, P.Geo:.