Marvel Discovery Corp reported it had received final approval on its previously-announced plan of arrangement involving the listing of Power-One Resources Corp, in which it currently holds around a 26% equity stake.
As part of the deal, Marvel shareholders received 16 million shares with Marvel receiving 5 million shares for transferring the Serpent River Pecors project (Elliott Lake, Ontario), and the Wicheeda project (Prince George, BC) to Power-One.
Power-One (SPINCO) has now arranged a private placing to raise gross proceeds of up to $800,000 by issuing flow-through and non-flow-through units to be closed on or before February 1 this year.
"We are thrilled to finally move ahead on the listing of Power-One," said Marvel CEO Karim Rayani in a statement.
"The Pecors and Wicheeda North projects have significant upside potential for a Tier 1 Discovery.
READ: Marvel Discovery touts a “very successful” 2021 as it gears up for a busy exploration year
"Marvel has completed extensive modeling, completing VTEM, ZTEM surveys and drilling at Pecors supporting the magnetic signature of a 5.7 km long 4.2 km wide magnetic anomaly with promising PGM drill results.
"Combine this with a 20Mt historic resource of 0.037% U308, with significant rare earths makes the Pecors a dynamic property."
He continued: "The Wicheeda North, BC is an earlier stage project that is tied onto Defense Metals property which hosts an indicated resource of 4.89 Mt at 3.02% light rare earths oxides and 2.2 MT at 2.90 % Light Rare Earths."
Existing Marvel shareholders will have first right of refusal to take part in the offering, in which up to 6 million non-flow-through units will be issued at a deemed price of $0.10.
Each unit consists of one common share and one share purchase warrant, with each warrant entitling the holder to subscribe for and purchase a non-flow-through common share at $0.30 for the first year and at a price of $0.50 until completion of the second year.
In addition, up to 1,538,462 flow-through units will be issued at a deemed price of $0.13. Each unit consists of one common share and one share purchase warrant, with each warrant entitling the holder to subscribe for and purchase one common share at a price of $0.30 for the first year and at a price of $0.50 until completion of the second year.
Marvel, which has been listed on the TSX Venture Exchange for over 25 years, is a Canada-based emerging resource company.
It is exploring its extensive property positions in: Newfoundland (Slip, Gander North, Gander South, Victoria Lake, Baie Verte, and Hope Brook - Au Prospects), Atikokan, Ontario (BlackFly - Au Prospect), Elliot Lake, Ontario (East Bull - Ni-Cu-PGE Prospect), Quebec (Duhamel -Ni-Cu-Co prospect & Titanium, Vanadium, and Chromium Prospect), and Prince George, British Columbia (Wicheeda North - Rare Earth Elements Prospect).
Contact the writer at giles@proactiveinvestors.com