Deal conducted by Canaccord, finances exploration and working capital
By Devika Patel
Knoxville, Tenn., April 21 – Marathon Gold Corp. said it will raise C$2 million in a private placement of units and stock with a C$1 million greenshoe. Canaccord Genuity Corp. is the underwriter.
The company will sell at least C$502,500 of units of one common share and one half-share warrant at C$0.23 per unit. Each whole warrant is exercisable at C$0.32 for two years.
The company also will sell flow-through common shares at C$0.27 apiece.
The warrant strike price and price per share reflect 28% and 8% premiums to the April 20 closing share price of C$0.25.
Settlement is expected May 5.
Proceeds will be used for exploration and development of the Valentine Lake Project and for 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$2,000,140
|
| Greenshoe: | C$1,000,040
|
| Underwriter: | Canaccord Genuity Corp.
|
| Pricing date: | April 21
|
| Settlement date: | May 5
|
| Stock symbol: | Toronto: MOZ
|
| Stock price: | C$0.25 at close April 20
|
| Market capitalization: | C$23.79 million
|
|
|
| Units
|
| Amount: | C$502,500 (minimum)
|
| Price: | C$0.23
|
| Warrants: | One half-share warrant per unit
|
| Warrant expiration: | Two years
|
| Warrant strike price: | C$0.32
|
|
|
| Shares
|
| Price: | C$0.27
|
| Warrants: | No
|
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