CAPITAL MARKETS

Marathon raises C$50 million for Valentine

Investors sweet on gold project

Staff reporter
 Marathon Gold is advancing its Valentine project in Canada’s Newfoundland

Marathon Gold is advancing its Valentine project in Canada’s Newfoundland

The company closed the placement, priced at $2.45 per share and $3.10 per flow-through share, last week.

"The offering was subscribed to by, among others, a single institutional investor, Mr Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates," Marathon said.

Highlights from a feasibility study in March had outlined a 13-year mine at Valentine with peak average annual production of 173,000 ounces, targeting first gold in October 2023.

Initial capex was put at US$229 million, after-tax NPV5 at $651 million and IRR at 42% using a $1,750/oz gold price.

The study did not incorporate the Berry zone, where drilling results earlier this month included 101m at 1.96g/t gold

Marathon has expanded the Berry drilling programme to 120,000m by mid-2022, to establish the resource potential "over its full 1.5km-long extent".

The company is working to de-risk construction at Valentine and is planning to finance the project through a mix of debt and equity.

Marathon Gold (TSX: MOZ) shares have ranged from C$1.50-$3.35 over the past year and closed down about 1% on Friday to $2.98, capitalising it about $639 million (US$529 million).

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