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Be the first with the news that moves the market- Marathon (MOZ) has commented on financing arrangements for its Valentine Gold Project
- An initial undrawn advance of US$125 million from Sprott Resource was funded into a debt proceeds account
- Marathon and Sprott are engaged in constructive discussions for a potential increase to the US$185 million facility
- The miner may also repurchase 0.5 per cent of a 2 per cent net smelter returns royalty for US$7 million from Franco Nevada from December 31, 2022, to January 31, 2023
- Marathon is a Toronto-based gold company advancing its 1.43 Moz Valentine Gold Project in Newfoundland and Labrador
- Marathon Gold (MOZ) is up by 3.57 per cent, trading at $1.015 per share
Marathon (MOZ) has commented on financing arrangements for its Valentine Gold Project.
On March 31, 2022, Marathon announced the completion of a US$185 million term loan facility with Sprott Resource Corporation. The proceeds will be allocated toward construction, development and working capital at the Newfoundland and Labrador-based project.
An initial advance of US$125 million was funded into a debt proceeds account. These funds remain undrawn.
Marathon and Sprott are engaged in constructive discussions for a potential increase to the facility. To this end, the parties have amended their credit agreement, adjusting the effective date for certain terms and conditions from December 31, 2022, to January 31, 2023.
The amendment adjusts the effective date for the second advance, the period under which the initial interest amount is calculated, the date when the facility will bear interest, and the effective date of mutual termination rights.
Marathon and Franco Nevada have also agreed to extend a right in favour of the company to repurchase 0.5 per cent of a 2 per cent net smelter returns royalty for US$7 million from December 31, 2022, to January 31, 2023.
Marathon is a Toronto-based gold company advancing its 100-per-cent-owned Valentine Gold Project in Newfoundland and Labrador. The project has estimated proven mineral reserves of 1.43 Moz (23.36 Mt at 1.89 g/t).
Marathon Gold (MOZ) is up by 3.57 per cent, trading at $1.015 per share as of 3:37 pm ET.
