Oct 13 2015
Marathon Gold Corporation announced today that it has entered into an option agreement with New Jersey Mining Company, pursuant to which NJMC has the right to purchase Marathon's 52.2% interest in Golden Chest LLC, the owner of the Golden Chest mining property in Idaho, USA.
The Golden Chest property is no longer strategic to Marathon, and Marathon remains focused on the development of its Valentine Gold Camp in Newfoundland.
The option agreement provides that NJMC can purchase Marathon's interest in GCLLC for a total consideration of USD 200,000 and a 2% over all claims currently held by GCLLC and any claims acquired by NJMC in the future in the defined area of interest.
"We believe this is a good transaction for Marathon as it monetizes our interest in Golden Chest and gives us additional cash flow if there is mining on the property in the future. This deal also ends our obligations to invest any further in Golden Chest. With Marathon and NJMC moving toward completing this transaction, Marathon will devote its resources 100% to developing the Valentine Gold Camp. Marathon's summer drilling program was successful in outlining gold mineralization at the Marathon Deposit, which now has a strike length of 850 meters and is still open to the southwest and northeast. A winter drilling program is in the early planning stage," said Phillip Walford, President and CEO of Marathon.
Source: http://www.marathon-gold.com/