Marathon PGM Corporation

March 04, 2005 08:45 ET

Marathon Announces Bought Deal Financing through Northern Securities


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MARATHON PGM CORPORATION

TSX VENTURE SYMBOL: MAR

MARCH 4, 2005 - 08:45 ET

Marathon Announces Bought Deal Financing through
Northern Securities

TORONTO, ONTARIO--(CCNMatthews - March 4, 2005) - Marathon PGM
Corporation (TSX VENTURE:MAR) (Company) is pleased to announce that it
has entered into an agreement with Northern Securities Inc. (Northern)
pursuant to which Northern has agreed to purchase by way of a private
placement on a bought deal basis $2,000,000 in Units and Flow-Through
Shares, subject to the purchase of a maximum of $1,000,000 in
Flow-Through Shares.

The Units will be issued at a price of $1.40 per Unit, with each Unit
consisting of a common share and a half warrant, each whole warrant
exercisable at $1.90 per share for a period of two years. The
Flow-through Shares will be issued at a price of $1.65 per share.

Northern will be paid a commission of 8% of the gross proceeds of the
offering and will be granted broker warrants to acquire such number of
Units equal to 10% of the aggregate number of Units sold in the
offering, and will also be granted broker warrants to acquire such
number of common shares of the Company equal to 10% of the aggregate
number of Flow-Through Shares sold in the offering. The Unit broker
warrants will be exercisable at $1.40 per Unit for a period of two years
and the Flow-Through broker warrants will be exercisable at $1.65 per
common share for a period of two years.

The offering is scheduled to close on or about March 29, 2005 and is
subject to certain conditions including, but not limited to, the receipt
of all necessary approvals including the approval of the TSX Venture
Exchange.

Proceeds from the offering will be used to advance the Company's
Marathon PGM-Cu project located in Marathon, Ontario and for general
corporate purposes. This private placement will insure that the Company
will have enough funding to complete the 2005 Exploration and
Development that it is planning now as a result of last year's drilling
program including exploration and development drilling as well as
provide the flexibility to expand the program as results dictate.

On Behalf of the Board of Directors,

"James D Frank"

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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Marathon PGM Corporation
    James D. Frank
    Chairman
    Jim@MarathonPGM.com
    or
    Investor Relations
    Bay Street Connect
    Gus Garisto
    (416) 907-0970
    gus@baystreetconnect.com
    www.marathonpgm.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.