Marathon Gold Announces Filing of Preliminary Prospectus

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TORONTO, May 08, 2020 (GLOBE NEWSWIRE) -- Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to announce that it has filed and obtained a receipt for a short form preliminary prospectus today with the securities regulatory authorities in each of the provinces of Canada, except Quebec, in connection with its previously announced offering whereby a syndicate of underwriters co-led by Canaccord Genuity Corp., Sprott Capital Partners and RBC Capital Markets and including Desjardins Securities Inc., National Bank Financial Inc., Scotia Capital Inc., Beacon Securities Limited, Haywood Securities Inc. and Laurentian Bank Securities Inc. (the "Underwriters"), have agreed to purchase from the Company, on a bought deal basis, an aggregate of 20,000,000 units (the "Units") of the Company at a price of C$1.50 per Unit for aggregate gross proceeds of C$30 million.

Each Unit will be comprised of one common share of the Company ‎‎and one half of one common share ‎purchase warrant of the Company (each full warrant, a "Warrant"). Each Warrant will ‎‎entitle the holder to acquire one common ‎share of the Company at a price of C$1.90 per common share at any time on or before that date which is 12 months after the closing of the offering.

In addition, the Company has granted to the Underwriters an over-allotment option to acquire up to an additional 3,000,000 Units at a price of C$1.50 per Unit for additional gross proceeds of up to C$4,500,000, exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing date.

The Company intends to use the net proceeds from the Offering to continue the permitting, development, and exploration of the Valentine Gold Project, as well as for working capital and general corporate purposes.

Closing of the Offering is expected to occur on or about May 26, 2020 and is subject to certain conditions including, but not limited to, receipt of all necessary regulatory approvals, including the approval of the Toronto Stock Exchange and applicable securities regulatory authorities.

Annual and Special Meeting Update

The Company is further pleased to confirm that Marathon has received approval in the Ontario Superior Court of Justice to defer its annual and special meeting of shareholders (the “AGM”) to a date later this year. The purpose of this deferral is to allow, when it is considered advisable by public health authorities to do so, an in-person meeting with shareholders in light of the current public health risks and restrictions arising from the COVID-19 pandemic. The Company places importance on providing the opportunity for shareholders to have in-person contact with the Board of Directors and management team as it moves toward development of the Valentine Gold Project. Further guidance will be provided on the details of the AGM when a new date is determined.