Sydney, Sep 28, 2007 AEST (ABN Newswire) - Marathon Resources Ltd (ASX: MTN) (Marathon) today announced a one (1) for five (5) non-renounceable pro rata rights issue at an issue price of $2.50 per new Marathon share. The issue price represents a discount of 25% to the closing price of Marathon's shares on 27 September 2007.
The Rights Issue will raise a maximum of $27 million if all rights are taken up (based on Marathon's undiluted share capital).
Proceeds will be used to fund the next stage in the development of Marathon's Mt Gee uranium project in South Australia's Northern Flinders Ranges, further exploration of its other mining tenements, as well as general working capital requirements.
The Rights Issue will not be underwritten and will be conducted without a prospectus in accordance with the new streamlined offering provisions of the Corporations Act.
Talbot Group Holdings Pty Ltd (Talbot) and CITIC Australia Pty Ltd (CITIC), who together hold approximately 19.59% of Marathon's issued share capital, intend to accept in full their respective entitlements under the Rights Issue, subject to any internal corporate approval required.
In addition, Marathon's Directors, who collectively control 11.23% of the Company's issued share capital, intend to take up their entitlements in respect of the shares they respectively control.
If Talbot, CITIC and the Marathon Directors take up their respective entitlements in full the issue will raise at least $8,371,832.
Holders of existing options to subscribe for Marathon shares have been given notice of their right to exercise their options in order to be eligible to participate in the Rights Issue in respect of the shares underlying their options.
If there is any shortfall in subscriptions under the Rights Issue, Marathon Directors reserve the right to place that shortfall in their discretion and in accordance with ASX Listing Rule 7.2.
Full details of the Rights Issue are set out in the Offer Memorandum and Appendix 3B lodged with the Australian Stock Exchange (ASX) today.
Notes to Editor
Marathon Resources is a minerals exploration company focused on the development of Mt Gee, one of Australia's largest undeveloped uranium deposits.
The Mt Gee project is located within the Paralana Mineral System of South Australia, a uranium rich state which is home to the world's largest uranium deposit at Olympic Dam.
Marathon's portfolio also includes highly prospective copper-gold-uranium properties in the Gawler Craton of South Australia.
The Company has gold and copper-gold projects in other parts of South Australia and western Victoria, including first copper-gold and based metal (silver-lead-zinc) projects in the Adelaide Geosyncline in South Australia and a prospective copper-gold project in the Moyston Fault Zone in Victoria.
Marathon also has a joint venture with listed uranium explorer Uranium SA Ltd (ASX: USA), in which the company holds a 7% stake; and with Primary Resources Ltd (ASX: PRZ) in the Warburton Project in Western Australia.
Marathon Resources listed on the Australian Securities Exchange on 15 March 2005, under the stock code MTN.
www.marathonresources.com.au
Contact
Stuart Hall
Chief Executive Officer
Marathon Resources
Tel: +61-8-8348-3500
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