Marathon Gold Completes $5.5 Million Bought Deal, Unit and Flow-Through Private Placement
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES /
TORONTO , Dec. 12, 2012 /CNW/ - Marathon Gold Corporation ("Marathon" or the "Company") (MOZ: TSX) is pleased to announce the closing of the bought deal private placement previously announced on November 19, 2012 pursuant to which Marathon sold (i) 5,474,500 units (the "Units") at a price of $0.55 per Unit with each Unit consisting of one common share of the Company (the "Unit Shares") and one half of one common share purchase warrant of the Company (each whole warrant a "Warrant"), each Warrant, exercisable for one common share of the Company ("Warrant Share"), for a period of 24 months from the closing date at a price of $0.75 per Warrant Share and (ii) 3,873,000 flow-through common shares ("Flow-Through Shares") at a price of $0.63 per Flow-Through Share for aggregate gross proceeds of $5,450,965 (the "Offering").
The Offering was conducted by a syndicate of underwriters led by Canaccord Genuity Corp., which included Haywood Securities Inc. and Fraser Mackenzie Limited (the "Underwriters"). The Company will use the net proceeds from the Offering to advance the assets of the Company and for general working capital purposes. The gross proceeds from the sale of the Flow-Through Shares will be used to incur "Canadian exploration expenses" as defined in the Income Tax Act ( Canada ) ("Act").
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 (the "U.S. Securities Act"), or any state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, a person in the United States or a "U.S. person" (as defined in Regulation S under the U.S. Securities Act) absent an exemption from such registration requirements..
About the Valentine Lake Project
Marathon Gold Corporation is now the 100% owner of the Valentine Lake Project. The Leprechaun Gold Deposit is situated at the south-western end of the Valentine Lake Project, and the Valentine East Gold Zone is located 17 kilometers along strike running in a north-easterly direction. The J. Frank Zone , which currently extends over an area in excess of 1.25 kilometers in length and 250 meters in width, is located up to 0.5 kilometers southwest along strike from the current Resource boundary of the Leprechaun Gold Deposit. These gold occurrences form part of a 23 kilometer long, highly prospective gold-bearing mineralized corridor focused along the Valentine Lake thrust fault.