/NOT FOR DISTRIBUTION TO UNITED
STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN
THE UNITED STATES/
TORONTO, Aug. 21, 2014 /CNW/ - Marathon Gold
Corporation ("Marathon" or the "Company") (MOZ: TSX) is pleased
to announce the closing of a bought deal private placement (the
"Offering") conducted by a syndicate of underwriters led by
Canaccord Genuity Corp., and which included Clarus Securities Inc.
The Offering was upsized from the proceeds previously announced in
the press release of the Company dated July
31, 2014 for gross proceeds of up to C$4.0 million. Under the revised Offering,
3,450,000 units (the "Units") of the Company were sold at a price
of C$0.50 per Unit and 4,863,140
flow-through common shares (the "FT Shares") of the Company were
sold at a price of C$0.55 per FT
Share for aggregate gross proceeds of C$4,399,727. Each Unit consists of one common
share of the Company and one-half of one common share purchase
warrant (each whole warrant a "Warrant"). Each Warrant entitles the
holder to purchase one common share of the Company at an exercise
price of C$0.75 until August 21, 2016. The securities issued under the
Offering will be subject to a hold period of four months and a day
which expires on December 22,
2014.
The net proceeds raised through the Offering
will be used, in the case of the FT Shares, to incur "Canadian
exploration expenses" in respect of the Valentine Lake Project as
defined in the Income Tax Act (Canada) as well as, in the case of the Units,
for the exploration and development of the Valentine Lake Project
and for general working capital purposes.
"I am very pleased with the response to the
financing and appreciate the investor's interest in the offering.
The funds raised will enable Marathon to continue the drilling campaign now
underway. There are eight holes completed to date testing the
mineralization in the Sprite trenches. The drill will be moving to
Rainbow shortly to test that mineralization and then the
drilling will be focused on the best mineralization" said
Phillip Walford, President and CEO
of Marathon Gold.
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, and may not be offered or sold in the United States or to the account or benefit
of a U.S. person absent an exemption from the registration
requirements of such Act.
About Marathon Gold Corporation
Marathon is a
Toronto based gold resource
development company focused on the Valentine Lake property in
central Newfoundland. Marathon's mission is to rapidly move the
Valentine Lake project towards advanced exploration and
pre-development stages. For more information visit:
www.marathon-gold.com.
About the Valentine Lake Project
The Valentine Lake property, owned 100% by
Marathon Gold Corporation, hosts two well defined gold deposits
with NI 43-101 compliant resources: the Leprechaun Gold Deposit and
the Victory Gold Deposit. The Leprechaun Gold Deposit is located
near the south-western end of the Valentine Lake property, and the
Victory Gold Deposit is located 13 kilometers along strike to the
north-east. These gold deposits form part of a 23 km long, highly
prospective gold-bearing mineralized corridor focused along the
Valentine Lake Thrust Fault.
The Leprechaun Gold Deposit has a NI 43-101
compliant Open Pit and Underground Resource (refer to August 1, 2013 news release). The Open Pit
Resource is Measured 3.5 million tonnes containing 247,000 oz Au,
and Indicated 6.2 million tonnes containing 412,000 oz Au, and
Inferred 1.2 million tonnes at 1.82 g/t Au containing 71,000 oz Au.
The Underground Resource is Measured 108,000 tonnes containing
17,000 oz Au, and Indicated 764,000 tonnes containing 100,000 oz
Au, and Inferred 349,000 tonnes containing 69,000 oz Au. As a
result of favorable drilling results in 2013 and 2014, the Sprite
Area, which is adjacent to the Leprechaun Gold Deposit, will be a
focus of continued exploration this year. The Sprite Area adjoins
the Leprechaun Gold Deposit and recent promising drilling is
located 1.5 km to the north east of the Leprechaun Gold
Deposit.
The Victory Gold Deposit (formerly Valentine East Hill) has an Open Pit Resource
(refer to August 1, 2013 news
release). The Open Pit Resource is Indicated 761,000 tonnes
containing 41,000 oz Au, and Inferred 199,000 tonnes containing
9,000 oz Au. Both deposits are open to expansion.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING
INFORMATION
Except for statements of historical fact
relating to Marathon Gold Corporation, certain information
contained herein constitutes "forward-looking statements".
Forward-looking statements include statements that are predictive
in nature, depend upon or refer to future events or conditions, or
include words such as "expects", "anticipates", "plans",
"believes", "considers", "intends", "targets", or negative versions
thereof and other similar expressions, or future or conditional
verbs such as "may", "will", "should", "would" and "could". We
provide forward-looking statements for the purpose of
conveying information about our current expectations and plans
relating to the future and readers are cautioned that such
statements may not be appropriate for other purposes. By its
nature, this information is subject to inherent risks and
uncertainties that may be general or specific and which give rise
to the possibility that expectations, forecasts, predictions,
projections or conclusions will not prove to be accurate, that
assumptions may not be correct and that objectives, strategic goals
and priorities will not be achieved. These risks and uncertainties
include but are not limited to those identified and reported in
Marathon Gold Corporation's public filings, which may be accessed
at www.sedar.com. Other than as specifically required by law, we
undertake no obligation to update any forward-looking statement to
reflect events or circumstances after the date on which such
statement is made, or to reflect the occurrence of unanticipated
events, whether as a result of new information, future events,
results or otherwise.
SOURCE Marathon Gold Corporation