Marathon raises $50m for Valentine project

Marathon Gold (TSX: MOZ) is raising $50 million (US$41.27 million) in a private placement to support exploration and development activities at its Valentine gold project in Newfoundland.

A single institutional investor, Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates, participated in the offering, Marathon said.

The financing consists of 14,285,714 common shares priced at $2.45 per common share and 4,838,710 flow-through common shares priced at $3.10 per flow-through common share.

The Valentine project is made up of five deposits along a 20-kilometre system.

A feasibility study released in April outlined an open-pit mine and conventional mill operation with a mine life of over 13 years.

The camp at Marathon Gold's Valentine Lake gold project in Newfoundland. Credit: Marathon Gold.

The project has estimated proven reserves of 29.68 million tonnes grading 1.46 grams gold per tonne for 1.4 million oz. of contained gold, and probable reserves of 17.38 million tonnes grading 1.17 grams gold per tonne for 0.65 million ounces.

Marathon sees potential to pour first gold by October 2023.

In other news, the company has also concluded a Memorandum of Understanding (MOU) with the Miawpukek First Nation relating to Valentines' environmental assessment and development.

The MOU includes the completion of a Traditional Knowledge/Traditional Land and Resource Use Study, funding for a community-based Liaison Officer, and the commencement of negotiations towards a Socio-Economic Agreement.

The company has a $596 million market capitalization.