The company has received binding commitments to raise the funds through a selective placement of 70 million shares to investors at A$0.06 per share.
Marvel is focusing on the upcoming spinout of its Chilalo Graphite Project in Tanzania, which will become Evolution Energy Minerals Ltd following an initial public offering.
This spinout will enable Marvel to focus on its five advanced gold projects in Mali.
Pleased as punch
Marvel managing director Phil Hopkins said Marvel would benefit greatly from Delphi’s investment, which, together with its subsidiary Deutsche Balaton AG, subscribed for approximately 58 million shares, which will give it a holding of 11.6%.
“We are very pleased to welcome Deutsche Balaton and Delphi as sizable institutional investors to the company,” he said.
“The placement price demonstrates the deep value potential in our gold and graphite assets, with the value of our graphite assets soon to be unlocked by our proposed spinout of the Chilalo Graphite Project, which has the potential to be highly value-accretive.”
This investment, totalling A$3.48 million, formed a large part of an overall A$4.2 million placement, the funds for which will be used to meet costs associated with Marvel’s ongoing gold exploration programs in Mali, the proposed spinout of Chilalo and general working capital.
The placement price represents a premium of 11.3% to the 15-day volume-weighted average price and a premium of 11.1% to the last traded price of A$0.054 on Thursday, August 5, 2021.
Marvel recently completed the acquisition of additional exploration licences around its Tabakorole Gold Project, which has a resource of 910,000 ounces at 1.2 g/t of gold, and its Tabakorole landholding now stands at 830 square kilometres.
The placement will fund continued expansion at Tabakorole focused on growing the resource.
Tabakorole joint venture partner Altus Strategies PLC (AIM:ALS, TSX-V:ALTS) recently reported results from the first six diamond drilled holes received to date, including 2.0 g/t gold over 13 metres; 3.9 g/t gold over 4 metres from a depth of 110 metres; and 2.8 g/t gold over 4 metres.
The spinout of Chilalo, meanwhile, is in the advanced stages, pending only final in-country regulatory approvals.
In a key development, a share exchange agreement (SEA) has been executed under which Marvel has agreed to sell the Chilalo Project to Evolution in exchange for Evolution Energy shares valued at A$10 million.
MVL shares have been almost 17% higher today to A$0.063 on the back of the placement news.
Delphi investment key
Delphi’s investment is significant for Marvel, given the German company’s track record in the Australian junior resources space.
Delphi also has significant investments in PNX Metals Ltd (ASX:PNX) (46.97%), Kin Mining NL (ASX:KIN) (25.52%), Blackstone Minerals Ltd (ASX:BSX, OTCQX:BLSTF, FRA:B9S) (17.87%), South Harz Potash Ltd (ASX:SHP) (formerly Davenport Resources, 15.78%), Perpetual Resources Ltd (ASX:PEC) (11.56%), Horizon Minerals Ltd (ASX:HRZ) (9.62%) and Mako Gold Ltd (ASX:MKG) (8.93%).
- Daniel Paproth