Marathon Gold Corp, a Toronto-based gold company operating in Newfoundland and Labrador, has finalized a deal with Franco-Nevada Corp. As part of the agreement, Franco-Nevada has purchased an additional 1.5 percent (%) net smelter returns royalty (NSR) on Marathon's Valentine Gold Project for a total of $45 million. This transaction brings Franco-Nevada's total NSR on the project to 3.0%. Furthermore, Franco-Nevada has made an offer to acquire Marathon's common shares from a $19.2 million non-brokered charity flow-through offering. The proceeds from this offering will be used for exploration expenses at the Valentine Gold Project. The completion of the deal is subject to regulatory approvals and is expected to close around July 6, 2023.
Marathon Gold Corp is a gold company focused on developing its 100%-owned Valentine Gold Project in Newfoundland and Labrador. The project consists of five mineralized deposits spanning 32 kilometers. A feasibility study conducted in December 2022 outlined a mining operation that would produce 195,000 ounces of gold annually for 12 years. The project has significant mineral reserves and resources. Construction began in October 2022 following the project's clearance from federal and provincial environmental assessment. Marathon's aim is to strengthen its balance sheet for the Valentine build, while Franco-Nevada's continuous support demonstrates confidence in the project's success.
Summary: Marathon Gold Corp has sold an additional 1.5% net smelter returns royalty on its Valentine Gold Project to Franco-Nevada Corporation for US$45 million. This brings Franco-Nevada's total NSR on the project to 3.0%. In addition, Franco-Nevada has offered to purchase Marathon's common shares from a non-brokered charity flow-through offering. The proceeds from this offering will fund exploration expenses at the Valentine Gold Project. Marathon aims to strengthen its balance sheet, while Franco-Nevada's continued support demonstrates confidence in the project's success.