/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR
DISSEMINATION IN THE UNITED STATES/
TORONTO, Aug. 21, 2014 /CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (MOZ: TSX) is pleased to announce the closing of a bought deal private placement
(the "Offering") conducted by a syndicate of underwriters led by
Canaccord Genuity Corp., and which included Clarus Securities Inc. The
Offering was upsized from the proceeds previously announced in the
press release of the Company dated July 31, 2014 for gross proceeds of
up to C$4.0 million. Under the revised Offering, 3,450,000 units (the
"Units") of the Company were sold at a price of C$0.50 per Unit and
4,863,140 flow-through common shares (the "FT Shares") of the Company
were sold at a price of C$0.55 per FT Share for aggregate gross
proceeds of C$4,399,727. Each Unit consists of one common share of the
Company and one-half of one common share purchase warrant (each whole
warrant a "Warrant"). Each Warrant entitles the holder to purchase one
common share of the Company at an exercise price of C$0.75 until August
21, 2016. The securities issued under the Offering will be subject to a
hold period of four months and a day which expires on December 22,
2014.
The net proceeds raised through the Offering will be used, in the case
of the FT Shares, to incur "Canadian exploration expenses" in respect
of the Valentine Lake Project as defined in the Income Tax Act (Canada)
as well as, in the case of the Units, for the exploration and
development of the Valentine Lake Project and for general working
capital purposes.
"I am very pleased with the response to the financing and appreciate the
investor's interest in the offering. The funds raised will enable
Marathon to continue the drilling campaign now underway. There are
eight holes completed to date testing the mineralization in the Sprite
trenches. The drill will be moving to Rainbow shortly to test
that mineralization and then the drilling will be focused on the best
mineralization" said Phillip Walford, President and CEO of Marathon
Gold.
This news release does not constitute an offer to sell or a solicitation
of an offer to buy the securities described herein in the United
States. The securities described herein have not been and will not be
registered under the United States Securities Act of 1933, as amended,
and may not be offered or sold in the United States or to the account
or benefit of a U.S. person absent an exemption from the registration
requirements of such Act.
About Marathon Gold Corporation
Marathon is a Toronto based gold resource development company focused on
the Valentine Lake property in central Newfoundland. Marathon's mission
is to rapidly move the Valentine Lake project towards advanced
exploration and pre-development stages. For more information visit: www.marathon-gold.com.
About the Valentine Lake Project
The Valentine Lake property, owned 100% by Marathon Gold Corporation,
hosts two well defined gold deposits with NI 43-101 compliant
resources: the Leprechaun Gold Deposit and the Victory Gold Deposit.
The Leprechaun Gold Deposit is located near the south-western end of
the Valentine Lake property, and the Victory Gold Deposit is located 13
kilometers along strike to the north-east. These gold deposits form
part of a 23 km long, highly prospective gold-bearing mineralized
corridor focused along the Valentine Lake Thrust Fault.
The Leprechaun Gold Deposit has a NI 43-101 compliant Open Pit and
Underground Resource (refer to August 1, 2013 news release). The Open
Pit Resource is Measured 3.5 million tonnes containing 247,000 oz Au,
and Indicated 6.2 million tonnes containing 412,000 oz Au, and Inferred
1.2 million tonnes at 1.82 g/t Au containing 71,000 oz Au. The
Underground Resource is Measured 108,000 tonnes containing 17,000 oz
Au, and Indicated 764,000 tonnes containing 100,000 oz Au, and Inferred
349,000 tonnes containing 69,000 oz Au. As a result of favorable
drilling results in 2013 and 2014, the Sprite Area, which is adjacent
to the Leprechaun Gold Deposit, will be a focus of continued
exploration this year. The Sprite Area adjoins the Leprechaun Gold
Deposit and recent promising drilling is located 1.5 km to the north
east of the Leprechaun Gold Deposit.
The Victory Gold Deposit (formerly Valentine East Hill) has an Open Pit
Resource (refer to August 1, 2013 news release). The Open Pit Resource
is Indicated 761,000 tonnes containing 41,000 oz Au, and Inferred
199,000 tonnes containing 9,000 oz Au. Both deposits are open to
expansion.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
Except for statements of historical fact relating to Marathon Gold
Corporation, certain information contained herein constitutes
"forward-looking statements". Forward-looking statements include
statements that are predictive in nature, depend upon or refer to
future events or conditions, or include words such as "expects",
"anticipates", "plans", "believes", "considers", "intends", "targets",
or negative versions thereof and other similar expressions, or future
or conditional verbs such as "may", "will", "should", "would" and
"could". We provide forward-looking statements for the purpose of
conveying information about our current expectations and plans relating
to the future and readers are cautioned that such statements may not be
appropriate for other purposes. By its nature, this information is
subject to inherent risks and uncertainties that may be general or
specific and which give rise to the possibility that expectations,
forecasts, predictions, projections or conclusions will not prove to be
accurate, that assumptions may not be correct and that objectives,
strategic goals and priorities will not be achieved. These risks and
uncertainties include but are not limited to those identified and
reported in Marathon Gold Corporation's public filings, which may be
accessed at www.sedar.com. Other than as specifically required by law, we undertake no obligation
to update any forward-looking statement to reflect events or
circumstances after the date on which such statement is made, or to
reflect the occurrence of unanticipated events, whether as a result of
new information, future events, results or otherwise.
SOURCE Marathon Gold Corporation
