Marathon Gold Corporation reported that it has amended and restated its term loan facility first entered into on March 31, 2022 with Sprott Resource Corporation (Sprott). Amongst other amendments described herein, the Facility has been increased to USD 225 million from USD 185 million. The proceeds of the Facility are to be used for the construction, development and working capital requirements of Marathon's Valentine Gold Project located in the central region of Newfoundland and Labrador.

Key Facility Terms: Senior secured term loan facility of USD 225 million maturing on December 31, 2027, with a 6-month extension option available at Marathon's discretion. USD 125 million of the Facility was funded to a debt proceeds account (the “DPA”) on March 31, 2022. On January 24, 2023, Marathon requested the second and final advance of USD 100 million to complete the DPA funding.

The Facility is available to the Company up to the end of March 31, 2025. The first USD 50 million in the DPA is available to Marathon immediately, with subsequent releases available on satisfaction of a cost-to-complete covenant and certain other customary terms and conditions. The Facility will bear an interest of 7.0% plus the greater of (i) 3-month LIBOR, and (ii) 2.50% per annum, payable quarterly.

An initial interest amount of USD 4.45 million (the “Initial Interest Amount”) representing interest on the funds advanced to the DPA since March 31, 2022, as well as 75% of the interest accruing to June 30, 2025, shall be capitalized.