TORONTO – Marathon Gold Corp. has agreed to acquire all of the outstanding common shares of Mountain Lake Resources. The transaction will consolidate Marathon’s and Mountain Lake’s 50% interests in the Valentine Lake gold project. Marathon will become the 100% owner of the property.
Mountain Lake shareholders will receive 0.40 of a Marathon common share and 0.40 of a common share of Spinco for each of their Mountain Lake common shares. The deal is worth $14.1 million, exclusive of the value of Spinco. The share price values Mountain Lake at $0.30 per share, a 20% premium to Mountain Lake’s closing price on May 23,2012.
The measured and indicated resources at Valentine Lake total 6.5 million tonnes at 2.05 g/t Au or 424,000 oz of contained gold. The inferred resource is 5.7 million tonnes at 1.65 g/t Au or 305,000 oz. This year Marathon plans 40,000 metres of drilling at the Leprechaun deposit and the J. Frank and Sprite zones.
More information is posted at Marathon-Gold.com.