SOURCE: Rambler Metals & Mining Plc

August 05, 2014 07:00 ET

Rambler Continues Its Investment in Marathon Gold

BAIE VERTE, NL--(Marketwired - Aug 5, 2014) - Rambler Metals & Mining PLC (TSX VENTURE: RAB) (LSE: RMM)

Rambler Continues Its Investment in Marathon Gold

London, England & Baie Verte, Newfoundland and Labrador, Canada - Rambler Metals and Mining plc (TSXV: RAB, AIM: RMM) ('Rambler' or the 'Company'), a copper and gold producer operating in Newfoundland and Labrador, Canada, today announces the closing of the third tranche of a private placement of common shares in Marathon Gold Corporation ("Marathon" or the "Company") (TSX: MOZ) under the terms of a subscription agreement dated December 3, 2013 and previously announced on December 4, 2013. 

The non-brokered private placement generated proceeds of $375,000 and cumulative proceeds of $875,000, with Rambler holding rights to invest an additional $1,125,000 in three quarterly tranches of $375,000, expiring on April 30, 2015. Post-subscription, Rambler holds a total of 2,734,258 shares in Marathon, representing 3.98% of the issued and outstanding shares.

The terms of this financing are set out below:

  • Rambler subscribed to purchase 760,340 common shares at a price of $0.4932 per share, for total proceeds of $375,000. The share price for this subscription, which closed on August 5, 2014, represents a 10% discount to the 5-day volume-weighted average price ("VWAP") of Marathon's shares on the trading day prior to Rambler providing notice to subscribe.
  • Marathon has granted Rambler rights to purchase additional shares in quarterly tranches of up to $375,000 per tranche from August 1, 2014 through to April 30, 2015 (the "Rights"), representing potential additional proceeds of $1,125,000. The pricing applicable to all investments pursuant to the Rights will be a 10% discount to the greater of the 60- and 5-day VWAP's ending on the day prior to Rambler giving notice of its intention to subscribe these shares.
  • There are no finder's fees or other costs associated with this financing.

Phillip Walford, President and CEO of Marathon Gold commented,
"We are pleased with Rambler's the continued investment in Marathon Gold and we share the same ideas about the potential of the Valentine Lake Property.

"Rambler's previous investments have been very timely in assisting Marathon in our exploration on the Valentine Lake Property. This financing, along with the recently announced $3 million bought deal financing, will enable Marathon to begin drilling on the Sprite and Rainbow targets on August 7, 2014."

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