Marathon Gold (TSX: MOZ) announced a non-brokered C$50 million ($41.27 million) private placement financing to support the continued advancement of its exploration and development activities at the Valentine gold project in Newfoundland.
The private placement financing consists of 14,285,714 common shares priced at C$2.45 per common share and 4,838,710 flow-through common shares priced at C$3.10 per flow-through common share for total gross proceeds of C$50,000,000.
According to the company a single institutional investor, Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates had subscribed for the offering.
The Valentine project comprises a series of five mineralized deposits along a 20-kilometre system.
An April 2021 Feasibility Study outlined an open-pit mining and conventional milling operation over a thirteen-year mine life with a 31.5% after-tax rate of return.
The project has estimated Proven Mineral Reserves of 1.40 Moz (29.68 million tonnes at 1.46 g/t) and Probable Mineral Reserves of 0.65 Moz (17.38 million tonnes at 1.17 g/t).
Marathon sees potential to pour first gold by October 2023.
Marathon has also concluded a Memorandum of Understanding (MOU) with the Miawpukek First Nation relating to the Environmental Assessment and development of the Valentine project.
The MOUs includes the completion of a Traditional Knowledge/Traditional Land and Resource Use Study, funding for a community-based Liaison
Officer, and the commencement of negotiations towards a Socio-Economic Agreement.
Midday Friday, Marathon’s stock was up nearly 9% on the TSX. The company has a C$596 million market capitalization.
