LONDON (Alliance News) - Rambler Metals & Mining PLC Tuesday said it has continued its investment into Marathon Gold Corp, with a subscription to purchase 760,340 shares for USD375,000.
The Newfoundland copper and gold producer, explorer and developer said the share price of 49.32 US cents for the subscription represents a 10% discount to the five-day volume-weighted average price of Marathon's shares on the trading day prior to Rambler giving notice of its subscription.
Marathon is a gold resource development company focused on the Valentine Lake property in central Newfoundland.
Rambler Metals first entered a deal to subscribe for shares worth USD500,000 in Marathon during December 2013 and part of the deal included an option for Rambler to invest a further USD1.5 million going forward.
As a result, Rambler can purchase additional shares in Marathon through quarterly tranches of up to USD375,000 from August 1 through to April 30, 2015.
The pricing applicable to all investments will be at a 10% discount to the greater of the 60 and 5-day volume-weighted average price of Marathon, ending on the day prior to Ramble giving notice of its intention to subscribe.
"We are pleased to have been provided with this opportunity to invest in Marathon and to support this project through further diamond drilling and an economic evaluation," Norman Williams, chief executive of Rambler said in a statement.
Rambler Metals shares were down 2.1% to 23.75 pence Tuesday midday.
By Tom McIvor; tommcivor@alliancenews.com; @TomMcIvor1
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