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Marathon Gold Corporation
$150m

Canaccord Genuity is pleased to announce that on September 20, 2022, its client, Marathon Gold Corporation (TSX:MOZ) (“Marathon” or the “Company”) announced that they successfully closed a “bought deal” offering by way of prospectus supplement consisting of 136,364,000 units (the “Units”) of the Company at a price of $1.10 per Unit for gross proceeds of $150,000,400 (the “Underwritten Offering”). With completion of this Underwritten Offering, Marathon is fully-funded to bring its world-class Valentine Gold Project into production, which management is targeting for late 2024.

Each Unit consists of one common share of the Company and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant entitles the holder thereof to acquire one common share of the Company at a price of $1.35 for a period of 24 months.  The Warrants are subject to an acceleration right whereby if, at any time following this closing of the Underwritten Offering, the daily volume weighted average trading price of the common shares of the Company on the Toronto Stock Exchange is greater than $1.75 per common share for the preceding 10 consecutive trading days, the Company shall have the right to accelerate the expiry of the Warrants to the date (the “New Expiry Date”) that is 30 days following the date of acceleration notice to the holders of the Warrants, provided that the New Expiry Date is not later than June 30, 2023.

The Company has granted the underwriters an option to purchase up to an additional 20,454,600 Units (the “Underwriter Option Units”) to cover over-allotments, if any, and for market stabilization purposes at a price of $1.10 per Underwriter Option Unit for additional gross proceeds of $22,500,060 (the “Underwriter Option” and together with the Underwritten Offering, the “Offering”), exercisable in whole or in part, at any time on or prior to the date that is 30 days following the closing of the Underwritten Offering.

The net proceeds of the Offering will be used to partially fund construction of the Valentine Gold Project, as well as for working capital and general corporate purposes.

Marathon is a Toronto-based gold developer focused on the construction of its 100%-owned Valentine Gold Project located in the central region of Newfoundland and Labrador, Canada. The Valentine Gold Project is fully-permitted and the Company expects to produce 2.0 Moz over a 13-year mine-life at an AISC of US$833/oz Au.

The Canaccord Genuity deal team included Tom Jakubowski, Matt Reimer and Thomas Tran from Investment Banking, Jason Melbourne, Greg Huffman and Rob Carmosino from Institutional Sales as well as Len Sauer and Lily Yu from Equity Capital Markets.

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