Marathon Gold Corporation reported that it has closed its previously announced public offering (the "Offering") with a syndicate of underwriters co-led by Canaccord Genuity Corp. and Haywood Securities Inc., and including Fraser Mackenzie Limited (collectively the "Underwriters"). 3,928,000 units (the "Units") of the Company were sold at a price of C$1.40 per Unit (the "Unit Offering") and 2,728,000 flow-through common shares (the "FT Shares") of the Company were sold at a price of C$1.65 per FT Share (the "FT Offering") for aggregate gross proceeds of C$10,000,400. Each Unit consists of one common share of the Company and one-half of one common share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company at an exercise price of C$1.80 per common share until June 2, 2014.
The Company has also granted the Underwriters an over-allotment option to purchase up to that number of additional Units (the "Over-Allotment Units", and together with the Common Shares and FT Shares, the "Offered Securities") equal to 15% of the Units sold pursuant to the Offering, exercisable at any time up to 30 days after and including the closing of the Offering at a price equal to the offering price of the Units of C$1.40 per Unit.
"Marathon is pleased with the support from existing and new shareholders that have participated in the financing. As the operator, we are eager to commence a 40,000 m drilling program in January 2012 on our flagship Valentine Lake Gold project. Marathon also anticipates the release of our updated Resource Estimate on our Leprechaun Gold deposit in Newfoundland, as well as an initial Resource Estimate on our Golden Chest project in Idaho," stated Phillip Walford, President and CEO of Marathon Gold Corp. "With the closing of this financing and the anticipation of upcoming milestones, we are equipped to begin 2012 with gusto."
The Company intends to use the net proceeds from the Offering for planned 2012 exploration programs on its Newfoundland and Idaho gold projects, including a 40,000 m drill program at the Valentine Lake joint venture with Mountain Lake Resources Inc. and a 25,000 m drill program at the Golden Chest joint venture with New Jersey Mining Company, and for general corporate and working capital purposes.