Marathon Gold - Valentine Gold Project.
Valentine Gold Project.
Source: Marathon Gold.
  • Marathon Gold Corporation (MOZ) has begun to exercise its US$7 million option on the Valentine Gold Project and increased its term loan facility to US$225 million
  • The Valentine Gold option is for a 0.5 per cent net smelter royalty buyback, which would decrease Franco Nevada’s holding to 1.5 per cent
  • The buyback is scheduled for February 22, which is when Marathon Gold is expected to pay the cash amount owed
  • The company also amended and restated its term loan facility with Sprott Resource Corporation to US$225 million
  • The proceeds will be used for the construction, development and working capital requirements of the Valentine Gold Project
  • Marathon Gold Corporation (MOZ) is up 3.81 per cent, trading at $1.09 per share as of 12:39 p.m. EST

Marathon Gold Corporation (MOZ) has notified Franco-Nevada Corporation its intention to exercise its US$7 million option on the Valentine Gold Project in Newfoundland.

The company also increased its term loan facility to US$225 million.

The Valentine Gold option is for a 0.5 per cent net smelter royalty buyback, which would decrease Franco-Nevada’s holding to 1.5 per cent. The buyback is scheduled for February 22, which is when Marathon Gold is expected to pay the cash amount owed.

The company also amended and restated its term loan facility with Sprott Resource Corporation, which was signed in March of last year. As a result, the facility has been increased to US$225 million from US$185 million. The proceeds will be used for the construction, development and working capital requirements of the Valentine Gold Project.

The new senior secured term loan facility will mature on December 31, 2027, with a six-month extension option available. The facility is available up to the end of March 31, 2025, and will bear an interest of 7.00 per cent plus the greater of a three-month LIBOR, or 2.50 per cent per year, payable quarterly.

In connection with the increased facility, Marathon will issue 10 million warrants to Sprott Resource with a strike price of $1.35 and a term of five years.

50 per cent of the facility is to be repaid in nine unequal quarterly installments commencing on September 30, 2025, with the remaining amount due on the maturity date.

Marathon Gold Corporation (MOZ) is up 3.81 per cent, trading at $1.09 per share as of 12:39 p.m. EST.


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