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Marathon Gold Corporation Announces Closure of US$185 Million Term Loan Credit Facility

Marathon Gold Corporation, a gold mining company based in Toronto, has announced the closing of a 6.5-year US$185 million term loan credit facility (“Facility”). This Facility was with Sprott Private Resource Lending II (Collector-2) LP (“Sprott”).

Marathon Gold Corporation Announces Closure of US$185 Million Term Loan Credit Facility.

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Marathon’s Valentine Gold Project, situated in the central region of Newfoundland and Labrador (“Project” or “Valentine”), will use the proceeds of the Facility for construction, progression and working capital.

We are very happy to be announcing today the closing of our previously disclosed US$185 million credit facility with Sprott. This term loan has an attractive overall cost of capital for Marathon, and a carefully tailored structure designed to maximize our success at the Valentine Gold Project.

Matt Manson, President and CEO, Marathon Gold Corporation

Our financing approach for Valentine from the start has been to arrange the appropriate balance of traditional term loan debt and equity, without excessive leverage. With this Facility, we have now achieved the debt component of our strategy with an experienced and highly commercial resource lender,” added Matt Manson.

Following upon the Project’s recent release from provincial environmental assessment, today’s news represents another important milestone in the development of the largest gold mining project in Atlantic Canada.

Matt Manson, President and CEO, Marathon Gold Corporation

Managing Partner of Sprott, Greg Caione stated, “As one of the largest investors and lenders dedicated to the natural resource sector, Sprott is excited to partner with Marathon’s experienced and accomplished management team.”

Our financing of Marathon is consistent with our strategy to provide innovative and flexible capital to maximize the value of exceptional projects and support world-class management teams. We look forward to partnering with Marathon on its journey to becoming a Canadian mid-tier producer. Valentine is an exceptional project in an excellent jurisdiction,” concluded Greg Caione.

Key Facility Terms

  • The US$185 million senior secured term loan facility will mature on June 30th, 2028 (the “Maturity Date”), with a six-month extension option.
  • The Facility will be funded in two tranches, into a debt proceeds account (the “DPA”). The first was US$125 million at close (the “Initial Advance”) and the second was US$60 million on December 31st, 2022. The Facility is available to the Company on a prescribed schedule until March 31st, 2025 (the “Availability Period”), subject to certain conditions. The Project’s release from federal environmental review, a construction decision by Marathon’s Board of Directors, the completion of security, and certain other customary covenants and terms are examples of such conditions.
  • The Initial Advance is subject to a fee of $4 million (“Initial Advance Fee”). The outstanding balance of the Facility will endure an interest rate of 7.75% plus the greater of (i) three-month LIBOR and (ii) 0.50% per year, payable quarterly when it is first released. The Initial Advance Fee, as well as 75% of the interest that accrues until the end of the Availability Period, is capitalized.
  • The first one million ounces of payable gold created by the Project will be paid at a rate of $15 per ounce. There will be no other commitment or arrangement fees.
  • Beginning on December 31st, 2025, the Facility will be repaid in 10 quarterly principal repayments equivalent to 5.0% of the outstanding balance, with the remaining 50% due at the Maturity Date.


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