Marlin Gold arranges $15-million rights offering

2012-12-11 14:28 ET - News Release


Mr. John Brownlie reports


Marlin Gold Mining Ltd. has filed a preliminary long-form prospectus with the securities regulatory authorities of British Columbia, Alberta, Manitoba and Ontario in connection with a proposed $15-million rights offering, with proceeds raised being used to commence construction at the La Trinidad project in Mexico, for exploration and development of its mineral properties, and for working capital and general corporate purposes.

Each holder of record of Marlin Gold common shares, as of a record date to be announced, will receive one right for each common share held. Each right will entitle the holder thereof to subscribe for additional common shares of Marlin Gold. The subscription ratio, record date and expiry date for the rights offering will be determined at the time of filing of the final long-form prospectus. To subscribe for common shares, a completed rights certificate, together with payment in full of the subscription price for each common share subscribed for, must be received by the subscription agent for the rights offering, Computershare Investor Services Inc., prior to the expiry date.

The rights offering is being made to holders of common shares in the qualifying jurisdictions. Rights certificates will not be mailed to holders of common shares resident outside of the qualifying jurisdictions or outside of Canada.

"With the completion of this rights offering, the $6-million of cash on hand and the continuing support of our largest shareholder, Marlin Gold is sufficiently funded to begin construction at the La Trinidad project. We expect a 10-month construction schedule beginning immediately after the new year, with the goal of producing gold in early 2014," said John Brownlie, chief executive officer of Marlin Gold.

In connection with the rights offering, Marlin Gold also announced that it has entered into a standby commitment agreement with its largest shareholders, Wexford Spectrum Trading Ltd. and Wexford Catalyst Trading Ltd., private investment funds managed by Wexford Capital LP. Pursuant to the standby agreement, the Wexford funds will purchase any common shares offered that are not otherwise purchased under the rights offering. The Wexford funds will not collect a fee for backstopping this rights offering.

The completion of the rights offering is conditional upon receipt of regulatory approvals, including that of the TSX Venture Exchange.

We seek Safe Harbor.