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Wednesday, January 25, 2017 Derek Macpherson

MLN Reduces Debt with La Trinidad's Cash Flow


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Marlin Gold Mining Ltd. (TSXV:MLN) announced it has made an US$5.5 million dollar repayment, reducing the unsecured credit facility with its majority shareholder, Wexford Capital, to US$32.0 million (due January 2018). Following the payment and further investment in Golden Reign Resources (TSXV:GRR) to maintain its interest (18.94%), Marlin’s cash and refined gold totaled ~C$8.5 million. With January’s production and costs expected to be similar to December’s (9,924 ounces sold at cash costs below US$250/oz), the company is well positioned to fund near-mine and step-out exploration at La Trinidad, additional exploration and development activities at Commonwealth and fund the remaining commitments for its stream on Golden Reign’s San Albino project in Nicaragua. We highlight that although grades are expected to decline for the balance of 2017, we estimate that the going forward quarterly cash flow would on average be US$17-19 million for the remaining ~2 years of La Trinidad’s current mine life.



Derek Macpherson | VP Mining Analysis
Sunneva Bernhardsdottir | Associate, Mining Analysis
Victoria Ellis Hayes | Associate
 
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Marlin Gold Mining Ltd. - TSXV:MLN - 1,2,3,4
Golden Reign Resources Ltd. - TSXV:GRR - 4

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