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Marvel Gold (ASX:MVL) - Managing Director, Phil Hoskins
Managing Director, Phil Hoskins
Source: Africa Intelligence
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  • Marvel Gold (MVL) says the spin-out of its Chilalo Graphite Project into a new company is in the advanced stage
  • Marvel plans to spin-out the Tanzanian project into “Evolution Energy Minerals” with a proposed initial public offering and ASX-listing
  • Before the spin-out can be completed, the company needs to be given approval from the Tanzania Fair Competition Commission (FCC), and from the board
  • Marvel hopes to get the FCC’s approval by mid-August and if all goes well, Evolution may begin trading on the ASX at the end of September or early October
  • Company shares ended the day in the grey at 5.3 cents

Marvel Gold (MVL) has announced the proposed spin-out and initial public offering (IPO) of a wholly-owned subsidiary is at the advanced stage.

In early May, Marvel inked its plans to spin-out its Chilalo Graphite Project into a new subsidiary named “Evolution Energy Minerals” with a proposed IPO and ASX-listing.

The company claimed this action would allow it to fully concentrate on its gold assets in Mali as it’s repositioning itself as a gold explorer. Despite this, Marvel believes the spin-out company will unlock the value of the Chilalo Graphite Project which is located in Tanzania.

Since the announcement was made, Marvel has entered a share exchange agreement (SEA) which allows it to sell the graphite project to Evolution in exchange for $10 million worth of Evolution’s shares (representing around 31 per cent of Evolution on a post-ASX listing, undiluted basis) and $2 million in cash.

Managing Director Phil Hoskins said the SEA marks a significant milestone in the spin-out process.

“To facilitate the repayment of the lender, receive $2 million in cash and retain
$10 million of Evolution shares would be a fantastic result for Marvel’s shareholders. This not only delivers non-dilutionary funding to Marvel, but also provides our shareholders with meaningful exposure to the ongoing development of the world-class Chilalo Graphite Project.”

Positively, the spin-out was given the tick of approval by Marvel’s shareholders at a general meeting held last month.

The spin-out is in the advanced stage, however, it remains subject to a number of conditions.

These conditions include Marvel’s board giving their final approval for the spin-out and ASX-listing, receiving approval from the Tanzania Fair Competition Commission (FCC), Evolution successfully completing a $22 million capital raise and the ASX formally approving Evolution’s listing.

Marvel is hoping to get Tanzania FCC approval by mid-August which will allow Evolution to lodge a prospectus soon after. Subject to receiving all of the necessary approvals, Evolution may begin trading on the ASX at the end of September or early October 2021.

Company shares ended the day in the grey at 5.3 cents.

MVL by the numbers
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