Marathon Gold Announces C$50 Million Private Placement

NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

TORONTO, May 13, 2021 (GLOBE NEWSWIRE) -- Marathon Gold Corporation (“Marathon” or the “Company”; TSX: MOZ) is pleased to announce a non-brokered C$50 million private placement financing to support the continued advancement of the Company’s exploration and development activities at the Valentine Gold Project, located in central Newfoundland (the “Project”).

The private placement financing consists of 14,285,714 common shares priced at C$2.45 per common share and 4,838,710 flow-through common shares priced at C$3.10 per flow-through common share for total gross proceeds of C$50,000,000 (“the Offering”). The Offering has been subscribed to by a single institutional investor (the “Investor”), Mr. Pierre Lassonde and Trinity Capital Partners Corporation and Affiliates (“Trinity”). The Investor is a large institutional fund focussed on the resource sector.

In the aggregate, the Investor has subscribed for 12,244,898 common shares for gross proceeds of C$30 million. Mr. Pierre Lassonde and Trinity have subscribed for 2,040,816 common shares for gross proceeds of C$5 million, as well as 4,838,710 flow-through common shares for gross proceeds of C$15 million. Certain members of Marathon’s Board of Directors and management team also plan to participate in the Offering.

Marathon is very pleased to have the important and strategic institutional Investor become a more meaningful shareholder, and to see Mr. Lassonde and Trinity continue to grow their investments in the Company. The private placement represents a strong expression of support for the Valentine Gold Project and the Company’s ongoing growth. Proceeds of the Offering will be used to continue the exploration, engineering, permitting and development of the Project, and for general corporate purposes.

The proceeds received by the Company from the sale of the flow-through common shares will be used to incur resource exploration expenses related to the Valentine Gold Project, which will constitute "Canadian exploration expenses" (“CEE”) as defined in Subsection 66.1(6) of the Income Tax (Act) (Canada). The CEE will be renounced to the subscribers of the flow-through common shares with an effective date of no later than December 31, 2021 in an amount equal to the aggregate purchase price for the flow-through common shares.