Marathon Gold entered into an exclusive non-binding indicative term sheet with Sprott Resource Lending for a senior secured project financing facility of $185 million. Marathon Gold will use proceeds from the credit facility to fund the construction of the Valentine Gold Project, which is located in the central region of Newfoundland and Labrador.
The credit facility is structured as a term loan with a 6.5-year tenor. Conditions precedent to closing include the completion of technical, legal and environmental and social due diligence; the receipt and review of the project’s final development budget and schedule; the completion of definitive documentation; and the receipt of applicable environmental permits, operating licenses and regulatory approvals. Closing is scheduled for no later than March 31, 2022.
“We are very pleased to announce this significant milestone in our project financing efforts for the construction of the Valentine Gold Project,” Matt Manson, president and CEO of Marathon Gold, said. “Sprott Resource Lending is an experienced and well regarded project finance partner to the mining industry, and we are excited to be working with them to develop what we anticipate will be Atlantic Canada’s largest gold mining operation. Detailed engineering, staffing and procurement for the Valentine Gold Project is underway, supported by our strong treasury. Construction is scheduled to commence in early 2022, subject to the timely receipt of all necessary permits and approvals.”
