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Marathon Gold Corp T.MOZ

Marathon Gold Corporation is a Canada-based gold exploration and development company. The Company’s primary business focus is the exploration and development of its flagship asset, the wholly owned Valentine Gold Project, located in Newfoundland and Labrador, Canada. The project comprises a series of five mineralized deposits along a 32- kilometer system. Its prospects are located along the Valentine Lake Shear Zone and include Frank Zone, Rainbow Zone, Triangle Zone, Victoria Bridge, Narrows, Victory Southwest, Victory Northeast, and the Berry Zone. In addition to the Valentine Gold Project in the Central Region of Newfoundland and Labrador, the Company holds 100% interests in the Bonanza Mine, a former mine located in Baker County in northeastern Oregon, the Gold Reef property, an exploration property consisting of approximately 12 hectares of claims located near Stewart, British Columbia; and a 2% net smelter returns royalty on precious metal sales by the Golden Chest mine in Idaho.


TSX:MOZ - Post by User

Post by templetooth2on May 14, 2021 2:03pm
195 Views
Post# 33204493

Further re dilution

Further re dilution
As per Ridgeback's post of TD's comments, this gives the company cash of Cdn$96.5 million.

However, that doesn't take into account pending proceeds of about $20.5 million from the exercise of the $1.90 warrants on May 26. Actually, there's 17.9 million warrants outstanding but I don't have the info on the exercise price of all of them.

So, true cash balance as of about month-end will be about $117 million. Let's say the company needs $7 million walking-around money for salaries, utilities, listing fees, etc. And assume they spend something like $10 - $15 million on drilling the next 15 months. That leaves about $85 million cash mid-2022.

Capex is last reported at C$305 million. Assuming 1/3 cash and 2/3 debt, MOZ only needs to raise peanuts in further equity. Depending on the terms of the missing 7 million warrants, very close to zilch further cash required.

The only "downside" to this pretty picture is that it probably means MOZ will take this to production itself. One shouldn't expect the company to put itself up for auction.
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