Proceeds will be used to to fund the development of the company’s Valentine gold project in central Newfoundland, whose construction was recently approved by the board. Building the mine is expected to cost Marathon between C$470 million and C$490 million, up from the C$305 million estimated in the 2021 feasibility study.
The feasibility study was based on a conventional surface mine consisting of two open pits at the Marathon and Leprechaun deposits and a central milling operation. A potential third pit is being evaluated at the new Berry deposit.
Production at Valentine is expected to occur late 2023 at 173,000 oz. a year, which would make it the largest gold mine in the province. The project has an after-tax net present value of C$600 million ($456m) (at a 5% discount rate) with a 31.5% internal rate of return.