Marathon Gold (TSX: MOZ) last night announced that it will be conducting a non-brokered private placement. The financing will look to raise $50.0 million, which is to be used to support the advancement of the firms Valentine Gold Project in Newfoundland.
Under the terms of the financing, the company will look to sell a combination of common shares and flow through shares. A total of 14.3 million common shares are to be sold at a price of $2.45 each, while 4.8 million flow through shares are to be sold at a price of $3.10 each.
Much of the offering is to be taken by a single investor, as well as Pierre Lassonde and Trinity Capital Partners. The single investor is expected to take down $30 million of the common share offering, amounting to 12.2 million shares. Lassonde and Trinity Capital Partners meanwhile are to take down $5.0 million of the common share offering, as well as the entire $15.0 million flow through offering. Management is expected to subscribe to a portion of the offering as well.
Sponsored · Cambria Gold Mines
Proceeds from the offering are to be used for the continued exploration, engineer, permitting, and development of the Valentine Gold project, as well as for general corporate purposes.
The financing is expected to close May 27.
Marathon Gold last traded at $2.58 on the TSX.
Information for this briefing was found via Sedar and Marathon Gold. The author has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
