TD Flash Note March 18thMarathon Gold Corp. (MOZ-T) C$2.95 Positive Provincial Permit Decision Arun Lamba, CFA Event Yesterday during market hours (the stock was halted from 12:45-1:30), Marathon announced the completion of the provincial Environmental Assessment (EA) process for the company's Valentine Gold Project in Newfoundland. This allows the company to commence site-specific permitting (pertaining to provincial jurisdiction), including the acquisition of the project’s Mining Lease.
Impact: POSITIVE Although yesterday's news does not represent the completion of the mine approval process, the completion of the provincial Environmental Impact Statement (EIS) review process and full Newfoundland and Labrador Cabinet approval for the Project to proceed mark a major milestone for the company, in our view.
Valentine remains subject to final release from the parallel federal EA (which the federal EIS review process was completed on March 16 and a draft EA Report for the project will be issued and available for public comment for 30 days — see our March 17 Note here).
There is no specific timeline for completion of the overall EA process, but the company believes a decision could come around/before mid-year. Mine construction is currently anticipated to start in Q3/22E, subject to the company receiving its permits.
As a reminder, Marathon completed the submission of responses to 76 first-round federal Information Requirements (IRs) on May 3, 2021. The Impact Assessment Agency of Canada (IAAC) subsequently issued a second round of 23 federal IRs, to which Marathon submitted responses on October 18, 2021. Subsequent to October 2021 and the extension of the provincial EIS review period, an additional four IRs were received from the federal regulator and were responded to.
On March 16, 2022, Marathon received formal notification from IAAC that its technical review of the EIS was complete and no further federal IRs would be forthcoming. Approval either directly by the federal minister, or in the federal cabinet, would represent the completion of the federal EA process and allow permits to be acquired on site activities pertaining to federal jurisdiction.
Marathon last reported ~$87mm in cash (as at December 31) and no debt.
Anticipated Timeline
Exploration Results — Ongoing
Possible Release from Federal EA Process — Mid-year 2022
Updated Resource — Mid-year 2022
Start of Construction — Q3/22 (company estimate)