New major shareholder Delphi Unternehmensberatung pays premium for Marvel Gold in $4.2m raising

Marvel Gold ASX MVL cornerstone investor Delphi Unternehmensberatung Deutsche Balaton AG
Delphi Unternehmensberatung and its subsidiary will own 11.6% of Marvel Gold.

Marvel Gold (ASX: MVL) has welcomed Delphi Unternehmensberatung AG as a cornerstone investor and major shareholder after it paid an 11% premium in Marvel’s latest $4.2 million equity raising.

All up, Marvel received binding commitments for 70 million shares at $0.06 each to raise the $4.2 million.

Delphi and its subsidiary Deutsche Balaton subscribed for 58 million shares in Marvel at $0.06 each, which is an 11.1% premium to the company’s last traded price of $0.054 on Thursday 5 August.

German-based Deutsche Balaton is listed investment company that manages about €500 million in funds.

The companies combined will own 11.6% of Marvel upon completion of the placement.

Marvel managing director Phil Hoskins said the company was “very pleased” to welcome Delphi and Deutsche Balaton as sizeable institutional investors to the company.

“The placement price demonstrates the deep value potential in the company’s gold and graphite assets, with the value of the company’s graphite assets to soon be unlocked by our proposed spin-off of the Chilalo graphite project, which has the potential to be highly value-accretive,” Mr Hoskins added.

Gold exploration and Chilalo spin-out

Marvel will use the placement proceeds to fund its ongoing gold exploration at its flagship Tabakorole gold project which covers 830 square kilometres of ground in Mali.

The project has a current contained gold resource of 910,000 ounces with an update due next month.

Raising proceeds will also be used to facilitate the spin-out of its Tanzania-based Chilalo project into its wholly-owned subsidiary Evolution Energy Minerals, which will complete a $22 million IPO and seek an ASX listing.

Last month, Marvel revealed a share exchange agreement had been made between it and Evolution.

Under the agreement, Marvel will sell Chilalo for $10 million Evolution shares and $2 million in cash.

After its ASX listing, Marvel expects to retain a 31% equity in Evolution.

Marvel expects the Tanzanian Fair Competition Commission will give the final go-ahead for the spin-out later this month with Evolution’s prospectus to be lodged not long after.

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