CA - Marathon Gold wins upsized loan facility for Valentine gold project

Marathon Gold ( OTCQX:MGDPF ) said Wednesday it increased the size of a term loan facility to help fund development of its Valentine gold project in Newfoundland and Labrador, and it plans to buy back part of the smelter royalty for the project.

The company said it amended and restated the loan with Sprott Resource that lifted the loan size to $225M from $185M with a reduced interest margin but an increase on the back-ended production-linked payment.

Marathon Gold ( OTCQX:MGDPF ) has plans for a three-pit mine at the Valentine project, with an updated feasibility study released in December projecting an operation producing 195K oz/year of gold for 12 years.

The company also said it will exercise an option to buy a half-percentage point of the 2% net smelter returns royalty on the Valentine project held by Franco-Nevada ( FNV ).

Marathon Gold ( OTCQX:MGDPF ) has faced numerous challenges in the past year, but risks seem to be fully priced in by the market as we enter 2023, Gold Mining Bull writes in an analysis posted recently on Seeking Alpha .

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