Marathon Gold has announced that it has received an approval from the Supreme Court of British Columbia for the arrangement to buy all the outstanding common shares to acquire Valentine Lake project located in Newfoundland, Canada.

The company will purchase all the outstanding common shares of Mountain Lake Resources to consolidate 50% of both the companies in the Valentine Lake gold project.

Marathon with the successful acquisition of the shares will become the 100% owner of the project.

The remaining projects of Mountain Lake will be transferred to a newly incorporated exploration company called Mountain Lake Minerals (Spinco)

Mountain Lake shareholder, under the terms of the arrangement, will receive 0.40 of a Marathon common share and 0.40 of a common share in Spinco for every Mountain Lake share held on the effective date.

Marathon is expecting the closing date of the arrangement or the effective date to be on or before 9 July 2012.

Canada based Marathon Gold is a gold resource development company.