From the Globe & Mail... "... Marathon Gold Corporation ("Marathon" or the "Company"; TSX: MOZ) is pleased to announce that it has closed its previously announced C$50 million private placement financing. The financing is to support the continued advancement of the Company's exploration and development activities at the Valentine Gold Project, located in central Newfoundland (the "Project"), as well as for general corporate purposes.
Pursuant to the private placement financing, the Company issued 14,373,101 common shares at C$2.45 per common share and 4,888,629 flow-through common shares at C$3.10 per flow-through common share for total gross proceeds of C$50,368,847. The offering was subscribed to by, among others, a single institutional investor (the "Investor"), Mr. Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates. The Investor is a large institutional fund focussed on the resource sector. Certain members of Marathon's board of directors and management team subscribed for an aggregate of 87,387 common shares and 49,919 flow-through common shares.
The proceeds received by the Company from the sale of the flow-through common shares will be used to incur resource exploration expenses related to the Project, which will constitute "Canadian exploration expenses" ("CEE") as defined in Subsection 66.1(6) of the Income Tax Act (Canada). The CEE will be renounced to the subscribers of the flow-through common shares with an effective date of no later than December 31, 2021 in an amount equal to the aggregate purchase price for the flow-through common shares..."