Mountain Lake Resources Inc V.MOA

MOZ

[Ridgeback]

Marathon Gold arranges $10-million equity financing

2011-11-16 08:33 ET - NewsRelease

Ms. Jennie Guay reports

MARATHON GOLD ANNOUNCES C$10 MILLION EQUITY FINANCING

Marathon Gold Corp., in connection with its previously announced publicoffering on Nov. 14, 2011, has entered into an underwriting agreement with asyndicate of underwriters co-led by Canaccord Genuity Corp. and HaywoodSecurities Inc. and including Fraser Mackenzie Ltd. to sell 3,928,000 units ofthe company at a price of $1.40 per unit and 2,728,000 flow-through commonshares of the company at a price of $1.65 per flow-through share for total grossproceeds of $10,000,400. Each Unit will consist of one common share of theCompany and one-half of one common share purchase warrant. Each warrant willentitle the holder to purchase one common share of the Company at an exerciseprice of C$1.80 per common share for a period of 30 months following the date ofclosing of the Offering.

The Company has also granted the Underwriters an over-allotment option topurchase up to that number of additional Units (the "Over-Allotment Units", andtogether with the Common Shares and FT Shares, the "Offered Securities") equalto 15% of the Units sold pursuant to the Offering, exercisable at any time up to30 days after and including the closing of the Offering at a price equal to theoffering price of the Units of C$1.40 per Unit.

The Company intends to use the net proceeds from the Offering for ongoingexploration programs on the Company's Newfoundland and Idaho gold projects,including a planned 40,000 m drill program at the Valentine Lake Gold Projectand a 25,000 m drill program at the Golden Chest Project, set to commence in2012, and for general corporate and working capital

[dshmd50]

Thanks for that information Ridgeback. When completed, the treasury of Marathon will have ~$13 million. https://www.marathon-gold.com/Theme/Marathon/files/11-11-11MOZ_Q3Statementsclean_v001_c6nr6v.pdf If my unsophisticated calculations deriving ~$150/meter drilled are used, " a planned 40,000 meter drilling program at VL Gold Project " will require $6 million of expenditures. MOA's

[Ridgeback]

I did get my Marathon shares today. I hold a good position and that's it.Keep in Mind Stillwater also hold MOZ and they are branching out from being a platinum producer to copper. I would not put it past them to want a gold producer as well. In case some of you don't know Stillwater Mining bought out Marathon Platinum Corp. What I would like to see is some new deep penetrating scans

[theCurse]

"Will Sprott be enticed to move his MOA ownership beyond 20%?Though I dislike our seemingly undervalued share price, it is what it is. Anyway, is there a better time for additional financing than NOW "My old friend DSH,Sprott will not go above 20%  Very rarely anyone does unless they are looking to takeover a company. A better time might be..1.  after Glover Island

[dshmd50]

Mi viejo tC, thanks for reading the posts expressing my latest MOA cerebral machinations.'Frank'ly and IMO, the 'inside' news is out, along with Glover Island,Little River and the new VL resource estimate. We retail types will be the very last to know.Marathon Gold, the operator of the VL Project, has just been underwritten to the tune of $10 million.................on the basis of

[Ridgeback]

Ridgeback's mention of Stillwater is a very interesting speculation. Anyway, just my meandering thoughts and all the best, DSH My opinion MOA will be like BTC some of you may know that Co., If Stillwater as a good sized shareholder in MOZ want to branch off into Gold then I would expect them to have an opinion or decide to add MOZ as a JV parnter besides just holding shares. MOZ and MOA could