The credit facility will have a 6.5-year term with closing scheduled for no later than March 2022 following the completion of technical, legal, and environmental and social due diligence, the receipt and review of the project's final development budget and schedule and environmental permits, operating licences and regulatory approvals.

A March feasibility study detailed production of 173,000 ounces a year for 10 years within a 13-year mine life starting in 2024 following an initial capital cost of C$305 million (US$240 million). Marathon raised C$50.4 million via a private placement in June for construction costs. Additional financing is contemplated by way of equity and equipment leasing.

"Detailed engineering, staffing and procurement for the Valentine gold project is underway, supported by our strong treasury. Construction is scheduled to commence in early 2022, subject to the timely receipt of all necessary permits and approvals," said marathon Gold president and CEO Matt Manson.

The credit facility permits additional indebtedness associated with the leasing of mobile equipment with a value of up to $110 million.

As of June 30, Marathon had cash and cash equivalents of C$107 million, plus in-the-money warrants due in September which could provide an additional C$12 million.

Valentine hosts proven reserves of 1.40Moz and probable reserves of 650,000oz.

Shares in Marathon Gold are trading at C$3.09, valuing the company at $725 million.