Mali Tenement Uncertainty Clouds Marvel Gold’s Revised Asset Sale

Background to the Revised Transaction

Marvel Gold Limited (ASX, MVL) has announced a significant update to its previously disclosed sale of interests in its Mali gold projects. The company has terminated its original agreement with Anchises Capital LLC concerning the Tabakorole and Yanfolila Gold Projects and entered into a new binding share purchase agreement focused solely on the Tabakorole Gold Project. This strategic pivot reflects Marvel’s recalibrated approach to its Mali portfolio amid ongoing regulatory uncertainties.

Key Terms of the New Agreement

The new agreement involves the sale of Marvel’s interest in the Tabakorole Gold Project through the transfer of its wholly owned subsidiary, Marvel Gold Australia Pty Ltd, to PMCE International Limited, a subsidiary of Anchises. Anchises has paid Marvel an upfront, non-refundable exclusivity fee of AUD 150,000. The remaining AUD 1 million is a deferred payment contingent on the renewal or granting of tenements by the Mali Cadastre or relevant government agencies, a process currently suspended but critical for project continuity.

In addition to the sale proceeds, Marvel will receive a 5% royalty on gold production from Tabakorole, capped at AUD 5 million over five years. This royalty structure provides Marvel with potential upside linked to future production without ongoing operational risk.

Equity Subscription and Capital Implications

Alongside the sale, Anchises has agreed to subscribe for 14,445,022 Marvel shares at $0.0173 each, raising AUD 250,000. This equity injection, priced based on Marvel’s 20-day volume-weighted average price, will support Marvel’s working capital and project advancement efforts. The subscription is unconditional, signaling Anchises’ continued commitment to Marvel’s broader growth strategy despite the narrowed focus on Tabakorole.

Remaining Mali Interests and Strategic Outlook

Post-transaction, Marvel retains its interests in the Yanfolila Gold Project and the Kolondieba Gold Project, the latter under a joint venture with Resolute Mining Limited. The company’s Mali portfolio remains significant, though the suspension of the Mali Cadastre since November 2022 continues to pose challenges for tenure and exploration activities.

Marvel’s management, led by Executive Director Timothy Strong, will likely focus on navigating these regulatory hurdles while leveraging the capital from the Anchises subscription to advance other projects, including the recently acquired Hanang Gold Project in Tanzania.