Bullboard - Stock Discussion Forum Marathon Gold Corp T.MOZ

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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... see more

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Marathon Gold Corp > Dilution Guess

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Post by templetooth2 on Sep 01, 2022 3:25pm

Dilution Guess

So far, we only see TD's reaction, thanks to Ridge. I think their equity raise estimate of $75 million at $1.50 per share is before Black Thursday.

With the Sprott debt and CAT eqpt. financing, that's C$345.8 million ($1.30 exch rate). Take the $490 needed minus $52 cash minus $345 gets you a dark hole of $193 million. (I used $52 cash, leaving co. $10 million walking-around money for utilities, listing fees, Xmas parties.)

If you assume that 30% of this could be debt, that means $135 million needed. At C$1.35 per share, that is precisely 100 million new shares, ignoring the typical 6% commission.

Don't know if re-negotiating with Sprott is more or less onerous than awaiting the second coming, but just thought I'd throw this out there for others to tee-off.

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