GOLD: Marathon Gold raising $30M in upsized bought deal

[caption id="attachment_1003735316" align="aligncenter" width="550"] Marathon Gold site office Credit: Marathon[/caption] TORONTO – Marathon Gold has announced a $30 million (upsized from $26 million) bought deal – net proceeds are intended for permitting, development and exploration at its Valentine gold project in Newfoundland. The syndicate of underwriters is co-led by Canaccord Genuity, Sprott Capital Partners and RBC Capital Markets; the underwriters have agreed to purchase 20 million units at $1.50 per unit for gross proceeds of $30 million. Each unit consists of one Marathon share and half of a warrant. The underwriters have an additional option to purchase up to a further 3 million units at $1.50 per unit for gross proceeds of $4.5 million, exerciseable at any time for 30 days following closing of the transaction, which is expected around May 26. In April, Marathon released the results of a feasibility study on its wholly owned Valentine gold project, which outlined a 12-year open pit mine, producing an average of 175,000 oz. of gold annually in the first nine years of operation. With an initial capital cost of $272 million and average life-of-mine, all-in sustaining costs of US$739 per oz., the net present value estimate for the project, at a 5% discount rate, came in at $472 million with a 36% internal rate of return. For more information, visit www.Marathon-Gold.com.