- Marvel Gold (MVL) has received binding commitments to undertake a $5.7 million placement
- The funds will be raised through the issue of 95 million shares to professional and sophisticated investors at six cents
- Marvel will use the funds to undertake exploration across its Mali projects with a focus on Tabakorole and Lakanfla
- Company shares are down 1.56 per cent on the market and are trading for 6.3 cents each
Marvel Gold (MVL) has received binding commitments to undertake a $5.7 million placement.
The gold explorer entered a trading halt late last week but did not announce how much it would be raising or what the funds will be used for.
The funds will be raised via the issue of 95 million shares to professional and sophisticated investors at 6 cents.
This price represents a 6.25 per cent discount to the closing price on October 28 of 6.4 cents and a 14.1 per cent discount to the 15-day volume-weighted average price.
Marvel will use the funds to undertake exploration across its Mali projects with a focus on Tabakorole and Lakanfla.
“This is a fantastic time to be undertaking gold exploration in Mali, an underexplored and highly prospective country,” Managing Director Phil Hoskins commented.
“The combination of Marvel’s exciting portfolio, focused exploration strategy, and well-credentialed team has seen a number of high-quality institutions join our register,” he said.
“Marvel’s strategy is to add value through exploration and discovery, a strategy supported by the well-documented decline in the mining reserves of global gold companies,” he added.
Marvel is currently in the process of undertaking its maiden 3800-metre drilling program at the Lakanfla Gold Project, confirming the presence of karst.
Subject to results which are expected in December, follow-up drilling programs will be carried out to identify potentially economic concentrations of gold mineralisation.
Marvel intends to advance regional exploration target at Tabakorole where little to no exploration has been previously completed.
The company will also undertake multi-element soil geochemistry and ground magnetics with aims to collect this data by the end of Q1 CY21.
These targets will then be followed-up with reverse circulation and aircore drilling.
“I am incredibly excited to be able to accelerate the exploration effort on Marvel’s portfolio of landholdings,” Executive Director Chris van Wijk said.
“I see numerous opportunities to add value for shareholders through the growth of the resource at Tabakorole, by generating assay results from Lakanfla, and by identifying new targets on our other properties,” he added.
Marvel is down 1.56 per cent on the market and shares are trading for 6.3 cents each at 11:35 am AEDT.