Ms. Jennie Guay reports
MARATHON GOLD ANNOUNCES C$10 MILLION EQUITY FINANCING
Marathon Gold Corp., in connection with its previously announced publicoffering on Nov. 14, 2011, has entered into an underwriting agreement with asyndicate of underwriters co-led by Canaccord Genuity Corp. and HaywoodSecurities Inc. and including Fraser Mackenzie Ltd. to sell 3,928,000 units ofthe company at a price of $1.40 per unit and 2,728,000 flow-through commonshares of the company at a price of $1.65 per flow-through share for total grossproceeds of $10,000,400. Each Unit will consist of one common share of theCompany and one-half of one common share purchase warrant. Each warrant willentitle the holder to purchase one common share of the Company at an exerciseprice of C$1.80 per common share for a period of 30 months following the date ofclosing of the Offering.
The Company has also granted the Underwriters an over-allotment option topurchase up to that number of additional Units (the "Over-Allotment Units", andtogether with the Common Shares and FT Shares, the "Offered Securities") equalto 15% of the Units sold pursuant to the Offering, exercisable at any time up to30 days after and including the closing of the Offering at a price equal to theoffering price of the Units of C$1.40 per Unit.
The Company intends to use the net proceeds from the Offering for ongoingexploration programs on the Company's Newfoundland and Idaho gold projects,including a planned 40,000 m drill program at the Valentine Lake Gold Projectand a 25,000 m drill program at the Golden Chest Project, set to commence in2012, and for general corporate and working capital