Marathon Gold Corporation is pleased to report that it has purchased for cancellation the historical 7.5% net profit interest royalty (the “NPI Royalty”) that covers certain mineral resource areas at the Company’s Valentine Gold Project in central Newfoundland (the “Project”).
As consideration for the NPI Royalty, Marathon paid C$500,000 in cash and issued 1,341,607 common shares (having an approximate value of C$4 million based on the 5-day VWAP) at closing to the Reid Newfoundland Company Limited (“Reid”), the private third-party vendor.
Marathon has agreed to pay additional cash consideration of C$3 million to Reid upon the formal release of the Project from both the applicable provincial and federal environmental assessment processes, including receipt of final Ministerial or Cabinet approval, as appropriate, and confirmation that the Project has satisfied the terms of the respective provincial and federal environmental assessment processes and that the Project may proceed to permitting for mine construction, subject to conditions.
Matt Manson, President and CEO, commented: “The NPI Royalty that we purchased today relates to certain properties at the Valentine Gold Project referred to as the “Reid Lots”.
These properties were initially granted to the Reid Newfoundland Company Limited in the early part of the last century in connection with the development of the Newfoundland railway. The NPI Royalty, which was initially reserved in 1905 and amended in 1948 to provide for a 7.5% net profits interest royalty on all minerals, continues to apply today in the areas of the Leprechaun and Sprite Deposits and part of the Berry Deposit. Our acquisition of the NPI Royalty for cancellation is
another key milestone as we progress the Valentine Gold Project towards a construction
decision, and we are happy to welcome Reid as a Marathon shareholder.”
