Marvel Gold Ltd (ASX:MVL) made considerable progress in FY21, securing an attractive portfolio of exploration assets and expanding its mineral resource at Tabakorole Gold Project.
The Malian focused gold explorer has assembled a portfolio of five projects through a mix of acquisitions and joint ventures.
In parallel with the advances in Mali, the company has progressed a transaction to spin out its Chilalo Graphite Project in Tanzania and undertake an initial public offering (IPO) of wholly-owned subsidiary Evolution Energy Minerals Ltd.
Notable agreements
During the period, Marvel entered into a joint venture agreement on the Tabakorole and Lakanfla gold projects with Altus Strategies Inc with various earn-in exploration requirements to earn up to 80% interest in the projects.
Marvel also entered into a joint venture agreement with Oklo Resources Ltd (ASX:OKU) on its West Mali projects where it earned 80% by paying cash consideration of $200,000.
The company anticipates issuing 20 million shares to Oklo once certain tenements are renewed while a further 20 million shares may be issued as consideration, dependent on further milestones.
Marvel also entered into an options agreement with Société Minière et Commerciale (SOMICO) over the Sakaar exploration permit to earn up to 80% dependent on the completion of three-stage of various exploration targets.
Ongoing exploration success
Mali gold projects.
In Mali, Marvel’s primary focus is on the Tabakorole Gold Project, where it has completed the milestones to earn a 51% interest and following recently completed work programs, is nearing a 70% interest.
At Tabakorole, the company has applied a systematic approach to exploration, which has seen a near doubling of the mineral resource to 910,000 ounces and ongoing exploration success during the 2021 field season that is expected to support a meaningful increase in the resource.
Promisingly, Marvel’s initial test-work program has confirmed the amenability of Tabakorole ore to simple carbon-in-leach processing and demonstrated high recoveries from all samples, with low cyanide and lime consumption.
Chilalo spinout
Chilalo Project in Tanzania.
Marvel is planning to unlock the value of its advanced Chilalo Graphite Project in Tanzania by spinning it out into a newly incorporated, wholly-owned subsidiary Evolution Energy Minerals Ltd.
Evolution proposes to undertake an IPO to facilitate listing on the ASX and intends to raise a minimum of $13 million via the IPO.
Under a priority offer, Marvel shareholders will be collectively entitled to subscribe for up to $2 million of Evolution shares.
Events after reporting period
Subsequent to year-end, the company:
- Substantially increased its Mali landholdings via the acquisition of 438 square kilometres of exploration permits in Mali, taking Marvel’s landholding in Mali to 830 square kilometres.
- A Share Exchange Agreement was executed under which the company agreed to sell the Chilalo Project to Evolution Energy Minerals Limited.
- Issued 70 million shares at $0.06 per share to raise gross proceeds before costs of $4.2 million.
- The company received regulatory approval from the Tanzanian Fair Competition Commission which allows the initial public offering of Evolution and the lodgement of the prospectus on September 28, 2021, inviting investors to subscribe for Evolution shares.