Offering's proceeds used for exploration on properties in Newfoundland
By Devika Patel
Knoxville, Tenn., May 12 - Marathon Gold Corp. said it raised C$859,500 in the first tranche of a C$2.5 million non-brokered private placement of units and stock. The deal priced April 22.
The company is selling units of one common share and one half-share warrant at C$0.39 per unit and flow-through common shares at C$0.44 apiece.
Marathon sold 2,181,283 units and 20,000 shares in the initial tranche.
Each whole warrant is exercisable at C$0.50 for two years. The warrant strike price and price per share reflect 31.58% and 15.79% premiums to the April 21 closing share price of C$0.38.
Proceeds will be used for exploration on Marathon's properties in Newfoundland.
"The company has also recently received a C$100,000 grant from the Department of Natural Resources, Newfoundland and Labrador's 2013 Junior Exploration Assistance Program for drilling completed at Valentine Lake project," president and chief executive officer Phillip Walford said in a press release upon closing the first tranche.
"This grant money along with new money raised puts us in good shape at the start our summer field season. Our immediate focus will be on the Sprite area where there has been very successful drilling recently. We are excited to see how the Sprite Area develops over the summer work program."
The gold resource development company is based in Toronto.
| Issuer: | Marathon Gold Corp.
|
| Issue: | Flow-through common stock, units of one common share and one half-share warrant
|
| Amount: | C$2.5 million
|
| Agent: | Non-brokered
|
| Pricing date: | April 22
|
| Settlement date: | May 12 (for C$859,500)
|
| Stock symbol: | Toronto: MOZ
|
| Stock price: | C$0.38 at close April 21
|
| Market capitalization: | C$17.74 million
|
|
|
| Units
|
| Price: | C$0.39
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.50
|
|
|
| Shares
|
| Price: | C$0.44
|
| Warrants: | No
|
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