Marathon Gold Corp T.MOZ

Sprott Implications

[templetooth2]

Thanks, Ridge! The Sprott analyst puts out there a lot more meat than other updates.
Most interesting, they are using 326 million fully-diluted, fully-funded shares, assuming a financing at .4X NAV.

I calculate 266 million almost-fully-diluted shares right now, excluding ballpark 2 million optionable shares at +$3. Ergo, 60 million shares to raise the needed equity component.

Assuming yesterday's $1.33 close was used, their calculation of the stock currently at .3 NAV implies NAV at $4.43.  If the financing occurs at .4NAV, that means $1.77 per share issue price. Ballpark guess, the stock would have to rise to $1.90 or a bit more to accommodate a bot deal at $1.77.  Sprott would know far better than I whether that's a realistic assumption.

Not including the expected 60 million share issue, i.e. just 266 mm f/d a current $1.37 price gives a market cap of $364 million.  Using 4 million ounces, that's $91 Cdn per oz in the ground, US$70 per.

[Ridgeback]

Thanks. I see the magic number higher.  Regards