PRECIOUS METALS

Marathon raises $114 million for Valentine

Marathon Gold is raising C$150 million (US$114 million) through a bought deal financing for use towards its Canadian Valentine gold project, which follows concerns that the development was facing a funding gap.

The raising follows concerns of a funding gap

The raising follows concerns of a funding gap

The agreement with Canaccord Genuity, on behalf of a syndicate of underwriters, will see them buy 136.36 million units of Marathon at a price of C$1.10 per unit.

The announcement follows Marathon on September 1 updating its initial capital expenditure for the Newfoundland-based Valintine project to C$470 million to C$490 million, which was a 57% increase from the previous estimate of C$305 million contained in the April 2021 feasibility study.

Inflation, project scope changing, and sustaining capital re-allocation was behind the capex update.

Following the capex update, analysts at Vancouver-based Raymond James said they expected equity financing would need to be C$125 million at C$1.74/share to C$160 million at C$1.52/share.

Marathon's share price has plummeted to more than two-year lows.

On 14 September, the company's share price was down 19% day on day at C$1.04, giving it a market capitalisation of C$267.22 million.

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