Dec 5 2013
Rambler Metals and Mining plc ('Rambler' or the 'Company'), a copper and gold producer operating in Newfoundland and Labrador, Canada, today announces that it has entered into a subscription agreement (the "Subscription Agreement") with Marathon Gold Corporation ('Marathon') for common shares of Marathon by way of a non-brokered private placement of a guaranteed subscription of $500,000 with an option to invest an additional $1.5 million going forward.
About Marathon Gold Corporation
Marathon is a Toronto based gold resource development company focused on the Valentine Lake property in central Newfoundland. Marathon's mission is to rapidly advance the Valentine Lake project. For more information visit: www.marathon-gold.com.
The Valentine Lake property itself, owned 100% by Marathon Gold Corporation, hosts two well defined gold deposits with NI 43-101 compliant resources: the Leprechaun Gold Deposit and the Victory Gold Deposit. The Leprechaun Gold Deposit is located near the south-western end of the Valentine Lake property, and the Victory Gold Deposit is located 13 kilometers along strike to the north-east, Newfoundland, Canada. These gold deposits form part of a 23 km long, highly prospective gold-bearing mineralized corridor focused along the Valentine Lake Thrust Fault.
The terms of this financing are set out below:
- Rambler will purchase 1,176,470 common shares at a price of $0.2125 per share, for total proceeds of $250,000. The share price for this subscription, which will close on or before December 11, 2013, subject to TSX approval is at a 10% premium to the 60-day volume-weighted average price ("VWAP") of Marathon's shares prior to the signing of the Subscription Agreement.
- Rambler will subsequently subscribe for additional common shares with a value of $250,000. The share price for this subscription, which will close no later than April 30, 2014, will be the greater of a 10% premium to the 60-day VWAP or a 10% premium to the 5-day VWAP on the day prior to Rambler giving notice of its intention to subscribe these shares.
- Marathon has granted Rambler rights to purchase additional shares in four quarterly tranches of up to $375,000 per tranche commencing May 1, 2014 (the "Rights"). The pricing applicable to all investments pursuant to the Rights will be the greater of a 10% discount to the 60-day VWAP or a 10% discount to the 5-day VWAP on the day prior to Rambler giving notice of its intention to subscribe these shares. If Rambler does not exercise its purchase rights in any quarter, they may elect to carry such rights forward for an additional three months subject to Marathon's consent under the same pricing conditions as the quarterly terms.
- Marathon has granted Rambler the right to participate in future financings to maintain its proportionate interest in Marathon's shares, and Marathon and Rambler have agreed that any investments both pursuant to the Rights and subsequently to March 31, 2016 will be capped such that Rambler's interest remains below 20%, except by mutual agreement.
- There are no finder's fees or other costs associated with this financing.
Phillip Walford, President and CEO of Marathon commented,
"We are pleased that Rambler has decided to invest in Marathon. This is a strong endorsement of the Valentine Lake gold project by a company mining in western Newfoundland. Their operating technical skills and experience in operating on the island are of value to Marathon as we progress to an economic study. We look forward to a beneficial relationship with Rambler. The funding will provide for a drilling program in January to expand the open pit resources at the Victory Deposit and to test the new mineralization at Sprite."
George Ogilvie, President and CEO of Rambler Metals and Mining commented,
"The Marathon team has done an excellent job in bringing the Valentine Lake project to this stage while identifying a significant unexplored trend of mineralization that could add further potential to the project. We are happy to provide whatever technical guidance they request of us however we are content to continue to watch this project grow under the expertise and guidance of the management team in place. This is an investment in a company with a track record of success and we are proud to be supporting their goal in whatever manner we can."
For more information on Marathon and the Valentine Lake gold project see Marathon's website at www.marathon-gold.com.