IKN

To quit this horrid act

Marathon Gold (MOZ.to) and yet another retail rip-off

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.

18 Comments

    À propos of nothing: Have you ever been to Newfoundland?

    Reply

    Marathon Gold will be attending the Beaver Creek symposium this year. I’m sure they’ll get an ‘on the ground’ reaction. Retail investors not invited to this invite-only event though so maybe it’ll be muted.

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    Stupid terms but they raised because they need more CAPEX as highlighted in the Sept 1st PR quote: <>

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      Stupid terms is the very least one can say. As for your justification of this financial sodomy, you seem to be suggesting that

      …you’re quite happy about stringing long-term shareholders along for a few years…
      …, then less than two weeks after publishing they had cash on hand to cover capex noting that they didn’t…
      …in an NR that made a $1.70 stock into a $1.40 stock, and…
      …without bothering to alter the literature published in August which still implied the shortfall was minor…
      …goes to raise almost half the published capex…
      …at $1.10, with a half warrant set at the dump price.

      If so, I congratulate you as you must be one of those people who enjoys life whatever reality might throw at them and be of the happiest and most optimistic of dispositions. Consider me envious.

      Reply

        Oh, I am not happy at all! I am explaining why they did it. I would have explored other means (streams?) whatever else instead of diluting to no even close to moving averages.

        Reply

          I already explained why they did it in the original post. In the last paragraph, the bit that includes the word “morons”.

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        Not to mention how much money these brokerages made from the time they received their term sheets and shorted into the financing.

        Reply

    It’s because capex ballooned to C$470-$490 mil, as we saw in the sept 1 NR

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    the August report is gone. just like shareholders’ money…

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    Has incompetence and “bad news” written all over it!

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    I have followed Marathon Gold for many years, and more recently the Nfld Gold boom. The Masters of Bay Street figured they knew more than the team that founded Marathon Gold and so sent Phil Walford packing and installed a local favourite whose claim to fame was building an uneconomic diamond mine. Leading an organization to build a gold mine is pretty much the same thing, no? 138 millions shares plus another 69 million warrants. Yeah, let’s punish existing shareholders.

    Reply

    […] checking back office a few minutes ago, it turns out that last night’s post on the company has been getting all the eyeballs. But hey, be clear I’m no expert on MOZ, it’s never […]

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    These juniors are all the same. Eventually the finance hucksters and grifters take over completely.

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    Yup another example of why folks won’t invest here indeed. Look at the mess axu shareholders just took in the ass.

    Reply

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