Marathon Gold Purchases Net Profit Interest Royalty on Valentine Project
The royalty continues to apply today in the areas of the Leprechaun and Sprite deposits and part of the Berry deposit.
In consideration for the royalty, Marathon paid C$500,000 in cash and issued approximately 1.34 million common shares (valued at approximately C$4 million) upon closing with Reid. The company also agreed to pay Reid an additional C$3 million upon official release of the project from applicable provincial and federal environmental assessment processes.
According to Matt Manson, president and CEO of Marathon, the company’s acquisition of the cancellation royalty represents “another key step in advancing the Valentine gold project towards a construction decision.”
Last week, Marathon released a new set of assay results from last year’s drilling at Valentine, which reportedly confirmed the “broad prevalence of gold mineralization” on the property outside of the mineral resource limits currently estimated at Marathon, Leprechaun and Berry Depots.
The total resources of the Valentine project include 1.92 million ounces. (32.59 million tonnes grading 1.83 g/t gold) classified as measured and 1.22 million ounces. (24.07 million tonnes grading 1.57 g/t gold) graded as noted. There are an additional 1.64 million ounces. (29.59 million tonnes grading 1.72 g/t gold) classified as inferred mineral resources.
The project is currently undergoing its required environmental assessment process before the start of construction, scheduled for 2022.