Before picking up the link to this afternoon’s NR from Marathon Gold (MOZ.to) I stopped by the company’s IR page and checked out the latest corporate presentation dated August 15th. Slide 3 spoke volumes:
So may the mining overlords of power forgive me for being so rude as to raise a small query, but why is MOZ raising $150m at anally violative terms to current shareholders if, just four weeks ago, it was so keen on creating the impression that its capex was covered? When you compare the terms of the bot deal announced today (with Canaccord, wouldn’t ya knowz it?)…
TORONTO, Sept. 12, 2022 /CNW/ – Marathon Gold Corporation (“Marathon” or the “Company”) (TSX: MOZ) is pleased to announce that it has entered into an agreement with Canaccord Genuity Corp. on behalf of a syndicate of underwriters (collectively, the “Underwriters”), pursuant to which the Underwriters have agreed to purchase, on a “bought deal” basis, 136,364,000 units of the Company (the “Units”), at a price of $1.10 per Unit (the “Offering Price”) for gross proceeds of $150,000,400 (the “Underwritten Offering”).
Each Unit will consist of one common share of the Company (a “Common Share”) and one-half of one common share purchase warrant (each whole common share purchase warrant, a “Warrant”). Each Warrant will entitle the holder thereof to acquire one common share of the Company at a price of $1.35 for a period of 24 months following the Closing Date…(continues)
…to the share price over the last…ooooh, let’s say two years…
…the price new money gets to pay for a share and a half warrant is an absolute insult to the people who’ve supported this stock and its project in the last few years. Once again, the self-serving morons in charge of the mining world give ample evidence as to why the investment community is walking away from the mess they’ve made of the sector, and walking away in droves. From front to back, the brokers, the company and the dealmakers, they are all utterly shameless.