A $1.9 million capital raise will allow Marvel Gold Ltd (ASX:MVL) to further fund business development initiatives and exploration opportunities outside of its Mali operations.
The company has received binding commitments to the money through the placement of 158,333,333 million shares to professional and sophisticated investors at $0.012 per share.
The issue price of $0.012 for the new shares represents a 7.7% discount to the last traded price of Marvel shares on the ASX of $0.013 as at May 4, 2023, a 15.2% discount to the five day volume-weighted average price of Marvel shares as at the close of trading on May 4, 2023 of $0.014 and a 23.6% discount to the 15-day volume weighted average price of Marvel shares as at the close of trading on May 4, 2023 of $0.0156.
“I would like to thank our existing shareholders for their continued support as well as welcome new investors to the company. Funds from the placement will provide the company with the capacity to undertake project generation work aimed at delivering new exploration opportunities for Marvel outside of Mali, while we continue to work to rationalise and monetise our Mali interests,” Marvel managing director Chris van Wijk said.
Mali focus
Proceeds from the placement will help Marvel in its efforts to rationalise its Mali exploration interests and to generate revenue from such interests in the coming months.
The company is currently well progressed in discussions with Resolute Mining Ltd (ASX:RSG, LSE:RSG) regarding an earn-in arrangement on its Kolondieba Gold Project in south-east Mali.
Indicative commercial terms are yet to be concluded; however, they include provision for an up-front cash payment of US$250,000 (AU$368,872) and expenditure by Resolute of US$750,000 to earn a 51% interest and expenditure of a further US$4 million to earn an additional 19% interest.
Marvel expects to provide updated information in the coming weeks, however there is no assurance that an agreement with Resolute will be concluded.
Recently, the company acquired the remaining 20% interest in five exploration licences in southern Mali that are part of a joint venture with Canadian-based B2Gold Corporation.
The acquisition took Marvel to 100% ownership of the Kolondieba and Yanfolila projects as well as several tenements contiguous with Tabakorole.