Marathon PGM Corporation

March 24, 2005 16:37 ET

Marathon Announces Closing of $2M Private Placement


NEWS RELEASE TRANSMITTED BY CCNMatthews

FOR: MARATHON PGM CORPORATION

TSX VENTURE SYMBOL: MAR

MARCH 24, 2005 - 16:37 ET

Marathon Announces Closing of $2M Private Placement

TORONTO, ONTARIO--(CCNMatthews - March 24, 2005) - Marathon PGM
Corporation (TSX VENTURE:MAR) (Company) is pleased to announce that it
has closed a private placement with Northern Securities Inc. (Northern)
for $2,000,000, of which $1,885,002 was raised upon the sale of Units
and $114,998 was raised upon the sale of Flow-Through Shares.

1,346,429 Units were issued at a price of $1.40 per Unit, with each Unit
consisting of one common share and one half of a common share purchase
warrant. Each whole warrant is exercisable into one common share of the
Company at $1.90 per share for a period of two years. 69,696
Flow-through Shares were issued at a price of $1.65 per share.

Northern was paid a commission of $160,000 representing 8% of the gross
proceeds of the offering and was granted broker warrants to acquire
134,643 Units and broker warrants to acquire 6,970 common shares
representing 10% of the Units and Flow-Through Shares issued under the
private placement. 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.

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 provide enough funding
to complete the Company's planned 2005 exploration and development
program, (which includes drilling etc.) as well as provide the
flexibility to expand the program as results dictate.



On Behalf of the Board of Directors,
(Signed)
Phillip C. Walford
President, CEO & Director


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Contact Information

  • FOR FURTHER INFORMATION PLEASE CONTACT:
    Marathon PGM Corporation
    Phillip C. Walford
    President, CEO & Director
    Gen@MarathonPGM.com
    or
    Marathon PGM Corporation
    347 Bay Street, Suite 301,
    Toronto, Ontario M5H 2R7
    (905) 823-1332
    (905) 823-1436 (FAX)
    www.marathonpgm.com
    or
    Bay Street Connect
    Gus Garisto
    Investor Relations
    (416) 907-0979
    gus@baystreetconnect.com
    The TSX Venture Exchange does not accept responsibility for the adequacy
    or accuracy of this release.