Proceeds to be used for exploration, general working capital purposes
By Devika Patel
Knoxville, Tenn., Aug. 21 – Marathon Gold Corp. said it raised C$4.4 million in a private placement of units and stock. The deal priced for C$3 million with a C$1 million greenshoe on July 31 and was increased to C$4 million with the greenshoe.
The company sold 3.45 million units of one common share and one half-share warrant at C$0.50 per unit. Each whole warrant is exercisable at C$0.75 until Aug. 21, 2016.
The company also sold 4,863,140 flow-through common shares at C$0.55 apiece.
The warrant strike price and price per share reflect a 19.05% premium and a 12.7% discount to the July 30 closing share price of C$0.63.
The deal was conducted by a syndicate of underwriters led by Canaccord Genuity Corp. and including Clarus Securities Inc.
Proceeds will be used for exploration, development and general working capital purposes.
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$4,399,727, including C$399,727 greenshoe
|
| Underwriters: | Canaccord Genuity Corp. (lead), Clarus Securities Inc.
|
| Pricing date: | July 31
|
| Settlement date: | Aug. 21
|
| Stock symbol: | Toronto: MOZ
|
| Stock price: | C$0.63 at close July 30
|
| Market capitalization: | C$36.75 million
|
|
|
| Units
|
| Amount: | C$1,725,000
|
| Units: | 3.45 million
|
| Price: | C$0.50
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Aug. 21, 2016
|
| Warrant strike price: | C$0.75
|
|
|
| Shares
|
| Amount: | C$2,674,727
|
| Shares: | 4,863,140
|
| Price: | C$0.55
|
| Warrants: | No
|
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