Marathon Gold secures $20m financing for Valentine exploration

Toronto-based Marathon Gold Corp. has raised C$20 million through a bought deal private placement. The proceeds will be used for exploration and development at the Valentine Lake gold project.

Marathon will issue 2.7 million flow-through units at C$1.85 each and 11.4 million common share units at C$1.32 each. Each common share unit will consist of one Maraathon share and a purchase warrant worth one-half of a share. Gross proceeds will be about C$20.1 million.

The syndicate of underwriters are led by Canaccord Genuity and Sprott Capital Partners. The underwriters have also been granted an option to sell up to an additional 2.7 million flow-through units, with the potential to raise approximately C$5 million more.

Marathon is advancing its Valentine gold project 55 km south of Buchans. A preliminary economic assessment was completed in October 2018 that examined open pit mining and conventional milling. The resources currently total 16.6 million measured tonnes at 2.18 g/t gold containing 1.17 million oz.; 28.5 million indicated tonnes grading 1.66 g/t and containing 1.52 million oz.; and 26.9 million inferred tonnes at 1.77 g/t and containing 1.53 million oz. of gold.

(This article first appeared in the Canadian Mining Journal)