Marathon greenshoe exercised for C$3 million placement of stock, units

Deal conducted by Canaccord, finances exploration and working capital

By Devika Patel

Knoxville, Tenn., May 6 – Marathon Gold Corp. said Canaccord Genuity Corp., the underwriter for its private placement of units and stock, opted to exercise the deal’s C$1 million greenshoe in full, lifting total proceeds of the offering to C$3 million. The deal priced for C$2 million with the greenshoe on April 21.

The company sold 10,504,500 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 until May 6, 2018.

The company also sold 2,163,500 flow-through common shares at C$0.27 apiece.

The warrant strike price and price per share reflect 28% and 8% premiums, respectively, to the April 20 closing share price of C$0.25.

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$3,000,180, including C$1,000,040 greenshoe
Underwriter:	Canaccord Genuity Corp.
Pricing date:	April 21
Settlement date:	May 6
Stock symbol:	Toronto: MOZ
Stock price:	C$0.25 at close April 20
Market capitalization:	C$23.32 million
Units
Amount:	C$2,416,035
Units:	10,504,500
Price:	C$0.23
Warrants:	One half-share warrant per unit
Warrant expiration:	May 6, 2018
Warrant strike price:	C$0.32
Shares
Amount:	C$584,145
Shares:	2,163,500
Price:	C$0.27
Warrants:	No

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